Mortgages From Top B-Lenders In BC, Canada

Our B-Lenders fill the gap when traditional mortgage lenders, like banks, won’t approve your application. With the B-20 Lending Guidelines changes made January 1st, 2018, B-Lender mortgages have become a more popular financing option for clients. They also tend to be more flexible on credit, including bankruptcies and consumer proposals, as well as self-employed income or stated income clients. 

B-Lenders in BC, Canada have to rely more heavily on the equity in the property.

Who Are B-Lender Mortgages For?

b-lenders’ mortgage approval

B-Lenders take on clients with slight issues like lower credit scores, unable to provide proof of income, or mild derogatory credit. These types of lenders primarily lend in urban areas. So, if you are in a smaller town, you will likely fit in with a private lenderBanks typically take on borrowers who can provide income proof and creditworthiness, bringing a comfort level that there won’t be any payment interruptions during a term. So, what do you do if you are self-employed or earn money in a way that you cannot always show conventionally? You need equity! 

Generally, you will be required to have 25% home equity to qualify under Canadian B-Lenders, but some programs will enable clients to borrow up to 80% of their home’s value.

General B-Lender Mortgage Guidelines

  • Lend up to 80% Primary home
  • Lend up to 75% Second home
  • Lend up to 75% Rental home
  • Minimum Beacon Scores 500
  • Previous Bankrupt: as little as 1 day discharged
  • Debt Service Ratios average 45/50 Higher on exception (case by case)
  • Alternative Income Options – Will accept a variety of income options. You must be able to provide documented proof of income.
  • Proceeds to Pay Out: Consumer Proposals, Income Tax Arrears, Property Tax Arrears
  • Rental Income: Higher Add backs to income than Banks.
  • Self-Employed Income – Allows less time in the industry (as little as 6 months) to 12 months bank statements. Equity options at 50% LTV

B-Lender Mortgage Or Private Mortgage Lender?

So you went to the banks, and they said no. Generally, when looking for B-Lenders in BC, Canada you must go through mortgage broker channels. So, what happens if B- Lenders turn you down as well? There are a few options to look at. 

A private lender in BC is a useful tool to brokers, allowing homeowners to leverage real-estate with the power of a home equity loan. If you hold a bank mortgage and they will not advance additional funds, a 2nd mortgage is often cheaper than turning to a B-Lender.

Contact us, your BC mortgage brokers, to run a blended rate calculation to determine the savings.

Canadian private mortgages do have costs associated with them, but are generally used as a short-term solution to a mortgage problem. They are usually used to secure financing aiming to improve the credit score or income challenges of the client.

In the future, usually one to two years after the problem has been rectified, we will refinance the mortgage out at a bank at today’s best mortgage rates.

B-Lending should be used only as a short-term financing option. Learn more about B-Lenders, and discover some helpful tips on how to improve your credit by calling us!

Looking to get approved for a B-lender Mortgage? We can help! Call or apply online today.