A useful comparison starts with the program requirements, total cost and a realistic plan for the next renewal.
What the labels mean
In this guide, A lending means prime mortgage programs and B lending means alternative programs. Treat these as shopping shorthand, not an approval standard or a rating of the borrower. Ask for the actual lender and program name whenever someone uses either label.
A bank name alone does not tell you whether a particular mortgage fits your situation. Lenders set their own policies, and similar products can have different conditions. FCAC explains lender differences.
Find the reason for the recommendation
Ask the person presenting an alternative mortgage to identify the specific obstacle to a prime option: accepted income, credit history, debt payments, property characteristics or another issue. A precise answer gives you something to compare and, where possible, improve.
For federally regulated lenders, OSFI expects careful income verification and assessment of repayment capacity. More equity is not a substitute for all underwriting checks. OSFI mortgage underwriting guidance.
Compare the whole offer
Build a comparison with one column per written offer. Record the mortgage amount, payment, amortization, term, fees paid upfront, fees added to borrowing, prepayment options and expected balance at renewal. Also note any debt that must be cleared before funding.
Keep the same requested amount and repayment period when comparing payments. A lower payment achieved by stretching repayment is a different choice from a lower borrowing cost. Ask for an explanation of any assumption that changes between columns.
An example: put fees in dollars
Suppose one hypothetical offer has a $4,000 setup fee and another has a $1,500 fee. The first starts with $2,500 more in charges. If you spread that difference over a two-year comparison, it is about $104.17 a month before considering interest or other differences.
This is a budgeting comparison, not an APR calculation. If the fee is borrowed, include the resulting interest and remaining debt as well. The example shows why comparing only the advertised rate can leave an important part of the decision out.
Make the next step concrete
If an alternative mortgage is intended as a temporary arrangement, write down what you expect to change before renewal. Replace “move to A lending later” with specific evidence to review, such as updated income records, lower balances or a corrected credit-report entry.
Set a review date early enough to explore options. Include a second plan if the expected change does not happen. Do not treat an anticipated future approval as money already available.
Use the numbers to ask better questions
Use the calculator to compare payments and debt-service ratios using the terms actually offered. Keep your original scenario so you can see the effect of each change. Read the TDS guide if debt payments are the main constraint.
A calculator category is an estimate under its assumptions. It cannot confirm that a particular lender accepts your documents, property or application. Bring the comparison to the lender or broker and ask which assumptions they can confirm in writing.
Put the figures into a scenario
Use the appropriate assumptions, compare the results and save a summary for your file.
Open the Residential Calculator →Sources and review
References checked September 22, 2026. Examples are illustrative; confirm the lender, insurer and program requirements for your situation.