What is a B Lender, and How Can They Help Me?
B Lenders were created to fill gaps in the mortgage market. They are for special situations where someone doesn’t fit into the standard banks very strict mortgage rules.
In Edmonton there are several B lenders that are available to you all with their own rules and regulations. A good Edmonton mortgage broker will understand the niche products that each of these lenders have so that they can put you with the right fit to get your mortgage done.
Generally B lenders are for people that have a lot of equity or cash, you cannot put down a small downpayment and work with a B Lender. They use your equity or property as collateral for a loan or mortgage. This is how they protect themselves.
6 Situations you can use a B Lender for In Edmonton
If your home is getting foreclosed on for any reason, you may be able to pull out equity from your home to get caught up on bills. Foreclosure is one of the biggest reasons B lenders are used.
2. Bad credit Large Downpayment
When you have bad credit, you can’t go to the bank and get financed. You will need an alternative. I get a lot of clients that inherit money and they want to put it into property before they blow it all. B Lenders are perfect for this.
3. Too Many properties, large downpayment
Investors sometimes have too many properties for a regular bank to finance, but they need just this one more. B lenders in Edmonton can help with this as they allow you to state your income and allow you debt ratios to be higher than standard banks.
4. Flipping houses
If you flip houses a b lender may sometimes be your best bet to get financing. They are fast and efficient. They allow you to pay it off anytime you want.
5. Buying a business using your equity
I have many clients that are buying businesses or franchises using the equity in their homes. A B lender is best for this, because a lot of times they are not working another job. Therefor they cannot qualify for other loans because they are not currently working.
6. Business for self large downpayment
If you have a new company, it is really hard to get mortgage financing. However if you have good equity or cash a B lender will lend you money for your loan.
7. Consolidation bad debt
Do you owe revenue Canada money, or high interest credit cards? Then a b lender is where you would go for your financing.
Common questions about B lenders in Edmonton
How much are mortgage rates through B lenders?
Rates will range from 3.39% all the way up to 11% depending on the situation. If you are already in foreclosure it can be on the high end of the spectrum.
2. Are there fees when you borrow through a B lender?
Yes there can be fees involved, Usually 2% of the mortgage amount.
3. Where do B lenders get their money from?
B Lenders get most of their money from private investors.
4. Can I get approved through a b lender?
5. Will a B lender approve me if I have bad credit?
Yes a b lender may approve you only if you have a large downpayment.
Sean and Radika Rampersaud are a family team of Edmonton mortgage brokers. They specialize on helping their clients to get the lowest mortgage rates in Canada by leveraging high volume and multiple lenders. “We want to help our clients not only to get the best rates, but also to make the home buying process easier.”