B Lender Mortgage – In a Nutshell

Growing in popularity, B lender mortgages are saving a ton of Canadians from the threat of inflated home prices and increasing mortgage costs.  This is especially true in 2023, as 2022 data is indicative of a tougher year ahead for homeowners. This could be expected to last into 2024. While most blindly chase the lower mortgage rates, regardless of the reality of being approved, B lenders can offer solutions that the traditional banks can’t serve up due to regulation. But are B lender mortgages truly worth it?

First, let’s bust some myths about B lender mortgages:

• A ‘B lender mortgage’ is NOT just for borrowers with bad credit
• A ‘B lender mortgage’ is NOT a private lender
• B lender mortgages are NOT unregulated
• B lender mortgage lenders are NOT more strict than traditional banks
• B lender mortgages are NOT less reputable than traditional banks

 

While B lenders are more expensive, both in rates and closing costs, they offer a real solution with a lot of flexible guidelines that could be the difference between being declined and being approved. For those reasons, you shouldn’t ignore what they have to offer, simply because of higher costs – they are worth it should this be the route you need to take. Here are some of the major advantages of B lender mortgages to consider:

• Higher mortgage affordability due to extended debt ratios (as high as 60%)
• Up to 90% rental offset which is a much more favourable calculation
• More leniency around credit scores and credit history
• Easier qualification for the self-employed
• Up to 35-year amortization (as opposed to maximum 30 years with traditional banks)
• Graduation (B to A) programs (for banks that have both A and B lending arms)
• More consideration for various co-signers, guarantors, and other sources of income

 

Don’t let your desire for the lowest rate be your roadblock to a mortgage solution that otherwise helps you achieve your ownership and mortgage goals. Also, no need to worry, we’ll always chase the best mortgage rate and highest mortgage affordability for all of our clients, even with B lenders. We’ll serve you the best we can, in your best interest. Call us today to find out what your B lender mortgage options are. (905) 455-5005.

 

(Disclosure: As a mortgage brokerage, we are incentivized (though higher monetary compensation) to successfully obtain traditional financing (aka ‘A’ bank mortgage) for all clients. We will not choose a B lender mortgage over an A Bank mortgage for our personal/financial gain (or financial gain to the brokerage). Doing so would be both morally and ethically wrong, not to mention a violation of our Code of Conduct as a mortgage brokerage serving the best interest of the public.)