B Lending. Not as good as Triple A, but better than Private
The B-Lending market is one of the more flexible lending tiers that mortgage brokers have access to. This tier of lending can be much different than what most borrowers imagine.
It will incur mortgage fees, which are not associated with Triple-A. In addition, B-Lending has higher interest rates, and you must have at least 20% down for purchases.
Access to products like “business for self-stated income“, extended ratios, and solutions for bruised credit.
A stated income mortgage is designed for borrowers who are self-employed and cannot provide traditional income verification. An example of this is a contractor who has a large cash portion of their income. If this income is not claimed, a Mortgage Broker can use 6- 12 months of the client’s business bank statements showing their total deposits. This total is “stated” for cash flow income and used to apply for your mortgage approval.
B-Lenders utilize Extended Ratios
Extended ratios apply when a mortgage doesn’t fit within the rules of affordability. If your ratios are higher than 39% and 44%, then mortgage brokers can use a B-Lender’s extended ratios to go up to 45% and 50%. This allows for significantly more room for borrowing.
Lastly, if you have a history of poor repayment resulting in a lower credit score then B-Lending is still an option for you. At Mortgage Suite we have access to B-Lenders with no credit score minimums. If you have a bankruptcy in the past, debts in collections or an active proposal we can still provide clients with options to get financing through B- Lenders.
Typically the term with a B-lender is short, between 1-3 years. During this time we help work with our clients to build back credit and plan an exit strategy to get them with a Triple-A lender.
