A Lenders

There are many different lenders to choose from when shopping for a mortgage. Traditional lenders, often known as “A lenders,” are banks and credit unions that cater to customers with good credit history, satisfactory down payment, and employment income. These customers are referred to as triple β€œA” clients. Traditionally, most people seeking mortgages go to these institutions.

The biggest banks in Canada, such as TDCT, Scotiabank, MCAP, RMG, National Bank of Canada, B2B Bank, Equitable Bank and many others serve a triple A clientele. Because these institutions are regulated by the federal government, you will be put through a stress test if you apply for a mortgage. The stress test determines if applicants can afford to pay interest at the five-year average posted rate or two percentage points above the rate offered by their bank or broker, whichever is higher.

Many credit unions serve predominantly triple A clients as well, they are not regulated by the federal government, instead provincial governments oversee their regulation.