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Private LendingMar 2, 2026· 6 min read

Private Lending on the Rise as Banks Tighten Rules

More Canadians are turning to private mortgage solutions as traditional lenders impose stricter qualification criteria.

Big-six banks have quietly raised the bar on debt-service ratios, beacon scores, and self-employed income verification. The result: a record share of approvals are now happening outside the prime channel.

Private and alternative lenders aren't a last resort — for many self-employed Canadians and clients in temporary credit recovery, they're the most appropriate fit. The key is having a clear, costed plan to exit back to A-pricing within 12–24 months.

If you've been declined recently, don't assume the answer is 'no' across the market. A second opinion from a broker with deep alternative-lender relationships often surfaces options the bank never mentioned.

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