NPX Mortgages is a Canadian non-prime lender under the Merix Financial umbrella that provides flexible solutions through mortgage brokers. Launched to offer alternative lending options when traditional prime mortgages are out of reach, NPX is designed to serve homebuyers and homeowners who may not meet standard bank criteria.
Merix launched NPX in 2016 as an uninsured, non-prime product line aimed at a wider borrower base .
What Kinds of Mortgages Does NPX Offer?
NPX focuses on non-prime mortgage financing, offering:
- Uninsured non-prime mortgages for borrowers with lower credit scores or self-employed income.
- Fixed-rate terms for 1-, 2-, and 3-year periods.
- Maximum loan-to-value ratios (LTVs) of up to 80% for primary residences and 75% for rental properties.
- Qualification criteria such as a minimum credit score near 500 and a total debt service (TDS) ratio up to 50%.
- Income assessment via bank statements, ideal for self-employed or commission-based earners.
Ideal Clients and Use Cases
NPX may be a suitable option for:
- Self-employed individuals who don’t have traditional income documentation.
- Borrowers with credit challenges, including those with credit scores below standard thresholds.
- Newcomers to Canada needing financing without extensive Canadian credit history.
- Investors looking to finance rental properties where LTVs and debt ratios may differ from prime products.
That said, not every NPX product applies to every borrower—loan terms must fit within specific criteria, and some property types or borrower circumstances may not qualify.
Advantages and Features
- Flexible lending criteria, including low credit requirements and reliance on bank statement income assessments.
- Decent LTV options, allowing borrowers to access up to 80% of their property value (75% for investment properties).
- Shorter mortgage terms, which can be useful for borrowers aiming to rebuild credit or later refinance.
These benefits can open doors for Canadians who otherwise might struggle to secure financing.
Considerations and Limitations
- Higher interest rates are to be expected compared to prime products due to increased risk.
- Shorter term options mean borrowers will need to renew or refinance sooner.
- Limited accessibility: NPX is only available through mortgage brokers, so you’ll need professional assistance to access it.
- Applicable only through participating brokers: Not all brokers can offer NPX products.
Is NPX Right for You?
NPX is a strategic choice for those dealing with non-traditional income, bruised credit, or newcomer status—but it’s not a fit for standard prime borrowers who qualify for lower rates elsewhere. Discussing your unique situation with a qualified broker is the best way to find out.
If you’re exploring your options—whether as a first-time buyer, investor, or refinancing for flexibility—apply for a mortgage or refinance online here.
Final Word
NPX Mortgages offers a valuable alternative for those who don’t meet prime qualifications, particularly self-employed borrowers and those with lower credit scores. As a non-prime lender under Merix, NPX provides flexibility through short-term, fixed-rate mortgages based on bank statements rather than tax returns.
If NPX seems like it could suit your situation, or you’re not sure where you fit, working with your mortgage broker can help clarify your eligibility and next steps.
If you’d like help exploring NPX or other lender options, you can always contact us to see how we might support your next mortgage move.
