B Lending – Alternative Lending Solutions When Your Bank Or Credit Union Declines Your Mortgage Application

B lending/Alternative Lending:

When considering alternative lenders, also known as “B” lenders, it is generally understood that the mortgage application is challenged.  The alternative lending space has changed during the past few years.  As federal and provincial lending legislation becomes increasingly restrictive, B-lenders are stepping up to fill the gaps left by BIG BANKS despite themselves.

Traditionally, B-lenders specialize in helping Canadians with weak credit, who are self-employed, and who have more than 20% equity or down payment.

Things are now changing on account of the tighter lending criteria.

The types of borrowers who do not fit inside the box of traditional banks or credit unions have increased to be sure.

Typical Client Profiles For B/altenrative Lenders:

– High-value property $1,500,000+
– Properties to be held in company/corporate names
– 2nd mortgage products HELOC & Credit Card.
– Bad credit
– Self-employed borrowers without a 2-year history in business or lower taxable income.
– Previous bankruptcy or consumer proposal
– Can use mortgage proceeds to pay out bankruptcy or consumer proposal early.
– Commissioned Sales People

B-lenders provide short-term lending solutions, usually with 1-3 year terms.  Fees are typically 1%-3% of the total mortgage amount.  Also, mortgage rates tend to be a little higher, usually 1%-2%, compared to Banks or Credit Unions.

If you would like to see if B/alternative lending is right for you, please contact us today!