Definition
A mortgage lender is a financial institution that grants a loan secured by a mortgage on real estate. In Canada, three classes are distinguished:
• A lenders: federally chartered banks (Big 6 + several smaller banks), provincial credit unions (Desjardins, Meridian, UNI), trust companies. Regulated by OSFI or AMF, subject to B-20 directly or by alignment. • B lenders (alternative): Home Trust, Equitable Bank, Community Trust, B2B Bank, and several MICs (Mortgage Investment Corporations). Specialized in atypical files. Rates 1-3% higher. • Private lenders: individuals, syndicates, funds. More opaque market, rates 8-14%, short duration.
A mortgage broker typically accesses 25-40 lenders across all three classes. A bank accesses one grid (its own). That is the main difference in shopping.