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B Lender Mortgages Toronto

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High Risk B Lender Toronto

Good people can have credit problems too. A few years back, it was impossible to secure a mortgage and own your dream home if you had bad credit. Today however, there are B lenders who are able to provide mortgage products to those without a good credit or income. We offer flexible mortgage solutions for borrowers who lack good credit or income while helping them to rebuild their credit.

Whether you need help to save your home after facing a foreclosure or to take advantage of lower mortgage rates, our experts can help. Our company has specialized in financial solutions for high risk B lender mortgages. We are certain to find a solution for you. We understand how important it is for you to find a reasonable mortgage rate that’s why we will work with you throughout the application process to ensure you get the best possible rates.

Whether you were recently declared bankrupt, are self-employed or lack good credit for any other reason our company is able to work with you to provide mortgage solutions that are suitable for your needs. We know that good people can experience financial challenges leading to bad credit. And we believe none of these financial challenges should keep you from buying a home.

What Are The Advantages and Disadvantages of B Lender Mortgage?

Advantages of B Lender Mortgage

The advantages of B lender mortgages can vary with the creditor you choose, but some of the most common include:

Alternative solution: Sometimes, qualifying for mortgages from traditional lenders is hindered by existing mortgage arrears, type of income, filed bankruptcies in the past or consumer proposals, poor credit scores, unconventional down payment sources, and high debt servicing ratios. A B lender Toronto will provide the alternative solution needed under such circumstances.

Shorter terms: Instead of the typical 5-year mortgage term, a B lender offers between one to three years. As such, the borrower gets to transition to traditional lenders without heavy penalization.

Leniency: B lenders do not have very stringent rules. Their debt servicing ratios are considered to be more affordable. They allow non-conventional sources of income, such as bonuses or commissions and can accept down payments from diverse sources. The B lender mortgage rate may be slightly higher than what traditional lenders offer, but the leniency makes up for that.

Disadvantages of B Lender Mortgage

The main disadvantage that borrowers experience when dealing with B lenders is higher closing costs and interest rates.

Getting a mortgage from a B lender also comes with the responsibility of doing an appraisal on the property regardless of the refinance or purchase. That usually applies to every type of mortgage and may seem like exploitation, but it is just an extra closing cost you have to pay when the A lenders turn down your mortgage application.

To get the B lender mortgages, you must have at least 20% of the down payment. This requirement is not a problem if you are refinancing. Still, if you are purchasing a new property, your budget will be greatly affected, especially if you only planned with the minimal amount of 5% or 10%.

Getting information concerning B lenders is not as easy as it is with traditional ones because their products are not usually advertised.

Why Should You Consider a B Lender?

Credit Score

You may be wondering, how do I get a mortgage from a B lender? Credit scores play a major role in mortgage acquisition because they reflect your ability to handle credit well. Several factors, such as the duration you have had the credit, your ability to keep up with payments and the payments you have missed, any debts referred to a collection agency, defaulted loans, and the existing balance, is used to determine the credit score. Lenders, both traditional and private, will rely on that score to decide whether to give you the mortgage or not. Low scores can prevent you from getting a loan from A lenders, but you can still qualify for a B lender mortgage at a higher interest rate. In most cases, the traditional financial institutions will require a minimum score of 680, but B lenders Ontario will consider the value of your collateral.

Income Source

Unlike conventional loans, B lender mortgages do not have very strict rules for self-employed individuals. Traditional lenders tend to ask for the tax returns for the previous two years and financial statements dating back the same period to prove that you are earning as much as you say. That may be a problem if you have been employed for less than two years or have alternative sources of income supplementing your main one.

With a B lender Toronto mortgage, you can qualify even without a two-year employment history. Borrowers relying on commission-based salaries can also get mortgages from these lenders, irrespective of the inconsistent income ranges.

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Do You Qualify For a Mortgage If You Have Bad Credit?

We have worked with a variety of B lenders to help people with past credit issues. We will never turn down a client because of bad credit or loss of income. Our company has a proven expertise in handling customers with credit problems. We’ve helped people like you to own a home when they had lost hope after bankruptcy, a foreclosure or personal losses. We will even help you to build up your credit rating gradually.

Each B lender is different in terms of the factors they consider to determine your mortgage rate. Other additional costs like a commitment fee may be required for you to access financing. Our job is to ensure you spend only what you can afford so that it doesn’t put you in future debts.

Are You Ready For That New Home?

If you’ve been turned down by numerous lenders due to bad credit or any other financial issue that lowers your rating, we can help. Allow us to get you the mortgage you need to buy a new home. With the help of our high-risk B lenders we will take you a step closer to owning a home. We have expert mortgage consultants who are experienced in dealing with clients in similar situations.

If your home is facing foreclosure, probably because of a poor credit rating, we can help you to avoid losing your home by getting a mortgage you can afford. We will work with you to evaluate your foreclosure options and source for the right financing for your needs.

How Can a B Lender Help You?

How do I get a mortgage from a B lender? This is one of the common questions among aspiring homeowners whose applications have been disapproved by traditional lenders. While conventional creditors are ideal for borrowers with high credit scores and stable incomes, B lenders are great for those looking for more flexibility with mortgages. They are increasingly becoming a popular choice in Canada because of their non-stringent laws and ability to overlook imperfect credit scores and histories. The chances of getting a mortgage from a B lender regardless of your situation are usually higher because they are more accommodating. For example, they can give you interest-only loans and arrange with you to make reduced payments if you are facing tough financial circumstances. Because of this, you stand a chance to own a home with them, even if your bank and other conventional lenders have turned you down.

Getting interest-only from a B lender

B lenders Ontario usually help by giving interest-only mortgages, whereby you start by paying off the interest without the principal amount until your finances improve. You still get a specific mortgage term, but you will not be penalized for the pending amount you still owe once it expires. You will only have the principal amount you were given. Although they may seem like a great idea, these loans should be taken only when necessary and depending on personal circumstances. Their main advantage is that you make fewer payments, which gives you time to reorganize your budget and save some money for other obligations such as debts from other sources. It also allows you to save some money for other investments, although that can only be temporary. Assessing your situation and determining your financial goals before seeking a B lender in your location is usually advised. Their products and services have several benefits, but you must also consider potential disadvantages. Certified Mortgage Brokers are here to help.

Do B Lenders Provide Better Rates Than the Big Banks?

Contrary to common belief, B lender mortgage rates are typically lower than what A lenders offer. However, mortgages insured by Canada Mortgage and Housing Corporation come with additional requirements such as the Debt Service or GDS not exceeding 35% and the Total Service Debt or TSD not exceeding 42%.

That means that the household expenses cannot be more than 35% of your salary, and the household obligations, together with the debt repayments, cannot be more than 42% of the monthly income.

The corporation also demands that at least one cosigner of the loan should have a minimum credit score of 680. In addition, borrowing from the B lender may mean having additional charges such as the CMHC insurance cost added to your fees.

The B lender mortgage interest rates tend to be lower because of their minimal availability, which means reduced accessibility. Most of them also do not have all-in-one packages that big banks have, where you can find multiple services and products from a single financial institution.

Big banks offer mortgage refinancing, home equity lines of credit, and several mortgage options, which gives them a wider clientele. On the other hand, the B lenders tend to be more cautious with their products and services, thus, the lower interest rate.

We help high risk borrowers every day. Talk to us today and let’s help you find a suitable home for you and your family.

Homeowners and property buyers often only know of one type of mortgage lender. These are the usual kind whose advertisements you see in may major billboards and other forms of publications. But there is actually a huge list of B mortgage lenders and private mortgage lenders. B mortgage products offer competitive charges and interest rates that are often lower than regular mortgage rates.

What to Do if You Don’t Qualify For CMHC-insured mortgage

Failure to qualify for a CMHC-insured mortgage does not mean you cannot get the financial assistance you need. Other alternatives such as using a private provider to get mortgage default insurance and uninsured mortgages are available. Private providers like Sagen will require a down payment of 5%, with at least 4% premiums, though that is subject to change. It is important to note that the insurance premiums are non-refundable. If you have a higher down payment of at least 35%, the premium can be as low as 0.60%.

You will need mortgage insurance if you have less than 20% for the down payment. Some private providers like Canada Guaranty will ask for lower down payments (at least 10%), but the premiums will be higher, and it only applies to self-employed borrowers.

What Makes A List Of B Mortgage Lenders In Toronto Different

Just remember that the rate may still depend on your credit score, your credit report, your down payment amount, your income, and the stability of your source of income. These are the known risks that dictate the kind of interest rate you will get.

The most common lender fee that a B mortgage offers is around 1% of the amount of the mortgage. This fee is collected to also protect the lender in case anything will happen to your payments. In some cases, the lender fee is lower but this can result to a slight increase in the interest rate.

For example, if your total mortgage is CAD1,000,000, 1% of that is CAD 10,000. You can still negotiate with your broker if you don’t want to pay that amount outright. He will just increase your interest so in turn you will still pay the lender fee but on a staggered basis. This can be better for your budget as you don’t need to have the money upfront. The increase in interest rate is also minimal.

Other than the lender’s fee, a B mortgage lender also charges broker commission. Broker fees can range anywhere from 1 to 2% of the total mortgage amount. The amount will also depend on how complex or how easy your situation is. If it is just a straight up sale with no problems or entanglements, your broker’s fee could be minimal. If your situation is a bit complex and you need the broker to facilitate so many different processes for you, the broker’s fee may be slightly higher.

A broker’s fee should be mentioned upfront by your broker. Knowing this type of fee will be added to your mortgage will help you plan your budget. This will also ensure that there are no surprises when the bill comes.

If you’re on a budget and need to cut costs but still want the services of a broker, a B mortgage lender is a good way to go. B mortgage lenders offer a wide variety of services including mortgage renewal and can help you with all your property purchasing needs.

Google Reviews

Certified Mortgage Brokers
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Afton Jaskolski
2020-12-30

Getting a private mortgage was not easy to be honest, but at least with Mr. Leon it was doable. Thank you for your help!

Davin Mills
2020-12-26

There are a lot of mortgage brokers in toronto to choose from, I was a bit intimidated by that. Don't regret I picked CMB, they took the lead and made sure to cover all the bases

Tracy Wilhoite
2020-11-21

I was renting an apartment for a long time and finally decided to take a big step - get a mortgage instead. Team at certified Mortgage Brokers laid out various options for me. The actual process went smooth and quick, happy with my new home.

Ryder Turcotte
2020-11-16

My wife and I decided to refinance our mortgage and started looking for a mortgage broker in Toronto. There were so many options, so you can imagine how overwhelmed we got! After talking to Leon we decided to proceed with Certified, didn't regret that decision once. They always gave useful recommendations, were attentive, and constantly in touch. And most importantly (for us) they helped us to save some money!!

Lucy Zimmerman
2020-11-11

Vita was great. Helped my son with all the paperwork and got him very good interest rate. On the closing date called to follow up if everything went fine. Quite a pleasant experience. I would recommend this firm for anyone who is looking a mortgage broker.

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