Lending solutions built for Advisors

Pre-Screening your clients

As an advisor, you can evaluate your clients’ ability to qualify for an RSP loan before submitting an application to B2B Bank.

Will they qualify?

B2B Bank’s RSP credit basics will help you save time because you’ll have an idea of whether or not your clients may qualify before you submit their applications. This will improve the experience for you both.

Capacity - Can your client handle the debt?

Rule of thumb: Regular monthly debt payments (including the new loan payment) should be less than or equal to 40% of their gross monthly income.

We use the Total Debt Service Ratio (TDSR) to calculate capacity.

How is TDSR calculated?

Tip:

Income consists of:

  • Salary
  • Commissions
  • Net self-employed earnings

It is important that your clients accurately report their income and debts, ensuring that you recommend the right lending solution for them.

Capital - Does your client have a positive net worth?

Rule of thumb: Their net worth should be at least equal to the loan amount (or 1.5 times the loan amount if the loan is greater than $50,000).

How is it calculated?

To qualify for a B2B Bank RSP loan, the applicant’s net worth should be at least equal to the loan amount requested.

Use our TDSR calculator to help determine whether your client will qualify.

Examples of debt:

  • Monthly mortgage or rental payments
  • Monthly property taxes
  • Outstanding loans – fixed monthly payments
  • Lines of credit – monthly payment based on outstanding balance.
  • Lease payments – fixed monthly payment
  • Unpaid income taxes – CRA-approved monthly payment
  • Alimony/child support fixed monthly payment.

Credit History - How has your client managed credit in the past?

Credit score is a measure of creditworthiness and helps determine the risk of a potential borrower.

Character - Does your client have good financial management habits?

Character is important. Look for career stability, residence history and their willingness to provide complete information.

The better your client’s financial habits and history, the greater their chances of qualifying.

Questions to ask your client:

  • Have they been approved for a loan before — car, investment loan, line of credit, other?
  • Do they make monthly bill, loan and credit card payments on time?
  • Do they usually have money left over after meeting their monthly expenses and debt obligations?

If your clients answer No to one or more of these questions they may not qualify for an RSP loan.

It is important to pre-screen your clients and manage their expectations.

RSP Loan Program Brochure