What is A-Lender in Canadian mortgages?
Major banks (RBC, TD, BMO, Scotia, CIBC) and monolines (MCAP, First National, RMG). Best rates but strictest qualification requirements.
Why A-Lender matters
A-lenders offer the lowest rates, so most clients should be tried here first. They also have the strictest rules on credit, income documentation and the stress test, so a file that does not fit usually needs another channel.
What is the A-Lender limit for Canadian mortgages?
680+ credit, 39% GDS, 44% TDS
A-Lender example
Worked example
A salaried borrower with a 720 credit score, two years in the job and ratios under 39% GDS and 44% TDS is a typical A-lender file.
How brokers use A-Lender
- Check credit, income documentation and ratios against A-lender limits before submitting, since a decline leaves a credit inquiry.
- Monoline lenders work only through brokers, which can mean better rates and more flexibility than the big banks.
- Self-employed and newer-to-Canada borrowers often fit better with an alternative lender even when their income is strong.
- When a file fails at an A-lender, note the reason. It shows what to fix or which lender type to try next.
More questions about A-Lender
What is the difference between an A-lender and a B-lender?
A-lenders have the lowest rates and strictest qualification. B-lenders accept files that fall outside those rules, such as lower credit or non-standard income, at higher rates and fees.
Which lenders are A-lenders?
The big banks and the monoline lenders, which are federally regulated and follow the stress test and standard ratio limits.