Alternative lending in Canada refers to lending solutions that are not offered by traditional financial institutions like banks, credit unions, or trust companies. Instead, alternative lenders include private lenders, mortgage investment corporations (MICs), and other specialized lenders who offer non-traditional lending products.

These lenders typically provide financing options to individuals or businesses who may not qualify for loans from traditional lenders due to factors like low credit scores, high debt ratios, self-employment income, or unique property situations. Alternative lending can also be a useful option for those who need financing quickly or require more flexible lending terms than what traditional lenders can offer.

Alternative lending solutions come in various forms, including first and second mortgages, equity take-outs, construction loans, and bridge financing. While alternative lending options often come with higher interest rates than traditional loans, they can be a valuable resource for those who need financing quickly or require more flexibility.

Working with an experienced mortgage broker can help borrowers find the right alternative lending solution for their unique needs. Brokers can help assess a borrower’s financial situation, determine which lenders are a good fit, and negotiate terms on their behalf.

It’s important to note that alternative lending can also come with higher risks, including the potential for default or foreclosure. Borrowers should carefully consider the terms and conditions of any loan they are considering and work with a reputable lender and broker.

Overall, alternative lending can be a valuable tool for those who need financing quickly or who may not qualify for traditional loans. As with any financial decision, it’s essential to carefully consider all options, work with trusted professionals, and make informed decisions.