Business for Self

Insured, Conventional and Alternative Mortgages

Our Business for Self (BFS) mortgage options help to ensure your self-employed clients have access to mortgage solutions tailored to their unique situations.

Solutions

B2B Bank provides mortgage brokers with many options to meet their self employed clients’ needs.

Program BFS > 2 Years
BFS Business

Bank Statement
Program
BFS -
Genworth
ALT A
BFS > 2 Years
Income
Conventional
BFS > 2 Years
Income 
Alternative
Property type Owner occupied 1 – 4 units
Second homes 1 – 2 units
Vacation homes 1 unit
Rental 1 – 4 units
Max. 2 units,
1 owner occupied
Owner occupied
1 – 4 units
Owner occupied
1 – 4 units
Loan amounts Owner occupied $50,000 $1,000,000
Second homes/vacation homes $50,000 $300,000
Rentals $75,000  $500,000

GTA, GVA, Calgary – $750,000
Rest of Canada – $600,000

$50,000 to $1,250,000 $50,000 to $750,000 
LTV1 Owner Occupied < 680 up to 75%
> 680 up to 80%   
Second homes up to 65%
Rentals up to 75%
Up to 90% purchase Up to 80% Up to 65%  
Max. amortization1

Owner Occupied < 680 - 25 years
> 680 30 years  
Second homes/vacation homes – 30 years
Rentals – 25 years

Up to 25 years Up to 30 years Up to 25 years
Min. credit score1 580 owner occupied
Second homes/vacation homes and rentals – 680

> 80% LTV – 650
< 80% LTV – 680

600 500
Max. GDS/TDS1 Owner Occupied, second homes/vacation homes < 680 45%/50%
> 680 45%/50% 
Rentals 39%/44%   
 39%/44%

< 680 – 35%/42%
> 680 – 39%/44%

55%/55%
Lender fees 1% for GDS/TDS above 39%/45% 
Lender fee may apply for lower beacon scores with GDS/TDS below 39%/45% 
Lender fee will be the greater of $750 or 1% 
 

 

1% for GDS/TDS above 39%/45% 
Lender fee may apply for lower beacon scores with GDS/TDS below 39%/45% 
Lender fee will be the greater of $750 or 1%    

Value-added features and options

Pre-payment privileges2:

  • Increase payments by up to 15% once per calendar year*
  • Pre-pay up to 15% of original principal once per calendar year
  • Look Back Rate Guarantee: Purchase – 120 days, Refinance – 60 days

 


Premiums and Fees

Rental mortgages may have rate premiums applied

Alternative lender fee:  Up to 1%

Alternative commitment fee:  Greater of $750 or 1%


Value-added features and options

 Pre-payment privileges:

  • Increase payments by up to 15% once per calendar year2
  • Pre-pay up to 15% of original principal once per calendar year
  • Genworth and CMHC insured product options
  • Look Back Rate Guarantee: Purchase – 120 days, refinance – 60 days
  • Switch/Transfer: not accepted from all lenders. Ask your BDM about approved lenders
  • Bridge Loan
  • Portability


Documentation3

 

Genworth ALT A Program BFS > 2 Years Income Program BFS > 2 Years
BFS Business Bank Statement Program

Follows guidelines established by
Genworth, available at
genworth.ca/en/products/business-for-self-program.aspx

  • Self-employed borrowers must have evidence of owning and operating an active business for a minimum of two years and provide a two-year history of earnings to support qualifying income  
  • Income must be fully verifiable with most recent two years of complete tax returns (all schedules) and Notice of Assessments 
  • Incorporated company additional requirements:
    • Most updated Articles of Incorporation
    • Most recent two years of business financial statements
  • Self-declared income and expense letter
    • Detailing the annual income and expenses of the business along with relevant legal business details, such as industry, nature of the business, legal name and tenure
  • Six months of business bank statements
    • Will be analyzed to verify both income and expenses
    • Gross income and typical expenses should align with self-declared information
    • In all cases, the lower of the two will be used to calculate debt ratios
  • Income and expenses for the business must be reasonable, based on factors, such as the borrower profile, business profile and alignment between self-declared amounts and information gathered from bank statements
  • Evidence of business existence for at least two years must be provided with one of the following:

    • Articles of Incorporation (required for a corporation)
    • REQ(Quebec)
    • Business registration
    • GST/HST registration
    • Business license
    • T1 Generals including the Statement of Business or Professional Activities (non-incorporated companies)
  • NOA required to confirm no income tax arrears

 



Resources


Debt service flexibilities, LTVs offered and amortization options are based on the assessment of the strength of the application. Satisfying the minimum credit score requirement alone does not automatically entitle the borrower to maximum LTV and amortization options or debt service flexibilities. Some parameters, such as LTV, may differ for AB, SK and NL.

The pre-payment privilege is non-cumulative and is available after the first anniversary of the mortgage.

B2B Bank reserves the right to request additional information or documentation at its sole discretion for the approval of the loan.

* Excludes variable mortgage products with variable payments.

All mortgages are funded by, registered in the name of, administered and serviced by B2B Bank. Debt service flexibilities are based on the overall assessment of the strength of the overall application. B2B Bank is a wholly-owned subsidiary of Laurentian Bank of Canada. B2B Bank acts solely in the capacity of lender and/or account administrator, and does not provide investment advice. Dealers, advisors and brokers, not B2B Bank, are responsible for determining the suitability of products and services for their clients and for informing them of any related risks. Any loan approval by B2B Bank should not be construed as an endorsement of any investment choice, program, or strategy. All loans are subject to credit approval and borrowed monies are due and payable regardless of the performance of the investments. B2B Bank products and services are only available through financial intermediaries. Satisfying the minimum credit score requirement alone does not automatically entitle the borrower to debt service flexibilities. All mortgages, loans and lines of credit are subject to credit approval. Any illustration or example provided are for illustrative purposes only.