When you’re ready to start searching for a new mortgage provider, you’ll have plenty of choices. Different kinds of mortgage lenders do more than compete to provide you with the best rates – flexibility, customer service, and mortgage products help to distinguish one mortgage lender from another.
The commercial banks are the biggest players, but with recent changes to legislation in Canada, getting a mortgage from a big bank is harder now than ever. In addition, a bank can only provide you with their product and rates, not anyone else’s.
Credit Unions provide a small percentage of mortgages to Canadians, particularly in small and rural communities. They are known for their customer service and flexibility to tailor their mortgages, although the number of mortgage products are limited and rates may be higher than at the bank.
Private lenders provide mortgages that can be approved quicker, without having to go through as much red tape as more traditional lending options. This can be attractive to borrowers that may have tarnished credit, or people who can’t meet the lending standards of the banks.