B-Lenders & Private Mortgages.
As Chilliwack Mortgages Brokers, we’ve decided to give you all an easy read on everything you need to know about B-lenders & Private Mortgages.
Most of us are vaguely aware of private mortgages, although B Lender Mortgages & Private Mortgages are the fastest growing segment in the Canadian mortgage industry, because they’re much easier to qualify for then the A-side.
The A side is getting tougher to qualify for now than at any time in recent memory. High prices in major cities, large mortgage requirements and a higher stress test, which can put qualification out of reach for homeowners who have had no concerns. This is where B-Lenders or Private Mortgages are needed to step in and help the homeowner get on track.
B Lenders are necessary, but all are very similar, watch out for lenders that add on High Fees.
4 most common cases when B lenders are needed to step in
- Consolidations – by doing a debt consolidation, it lifts the burden of debt. But also helps lift your credit score, which will get you back to the best rates on the markets.
- Stated Income – There are cutbacks on self employed lending for those who do not “claim” enough income. If you’re a self employed individual, the more you write off the less of a mortgage you will qualify for. Give short term capital while figuring out income.
- Construction Financing – Banks have tightened up on construction financing leaving fewer options.
- CRA Debt– Most Banks will not let you use a mortgage to pay off CRA debt. If you have CRA Debt, you must pay that off before applying for your mortgage.