Business For Self (BFS) Mortgage Solutions

With more and more Canadians joining the ranks of the self-employed, it makes sense to ensure clients in this market have access to mortgage solutions tailored to their unique situations. B2B Bank offers NINE BFS solutions!

At A Glance

Alternative Mortgage Solutions - up to 65% LTV

Solutions for borrowers with non-traditional income documentation, elevated debt ratios or previous credit impairment.

BFS stated income ≥ 2 years

  • HELOC and Homeowner's Kit ≥ 650 credit score
  • ≥ 540 credit score
  • BFS ≥ 2 years relying on stated income for qualification

BFS stated income < 2 years

  • ≥ 540 credit score
  • BFS < 2 years relying on stated income for qualification

Equity 50

  • ≥ 660 credit score
  • Up to 50% LTV
  • Excluded previous credit impairment

Expanded Mortgage Solutions - up to 80% LTV

Solutions for borrowers who cannot provide income documentation in the traditional manner.

BFS Expanded

Alternative proof of income

  • ≥ 580 credit score
  • Min. 2 years business for self
  • Validate income using 12 months business bank statements

New Professional

Alternative proof of income

  • ≥ 580 credit score
  • New professionals — doctors, dentists, lawyers, accountants
  • Strong earning potential
  • Proof of min. 2 years in business

Conventional Mortgage Solutions - up to 80% LTV

Solutions for well-qualified borrowers with a minimum 20% equity.

Fully verifiable BFS ≥ 2 years up to 80%

  • ≥ 600 credit score
  • Able to confirm income in traditional manner

Fully verifiable BFS ≥ 2 years Homeowner's Kit (HELOC and mortgage) up to 80%

  • ≥ 650 credit score
  • Revolving line of credit (HELOC max. 65% LTV)
  • Up to 80% LTV (HELOC portion up to 65% LTV)

Insured Mortgage Solutions - up to 95% LTV

Insured solutions for borrowers with a down payment of as little as 5%.

CMHC fully verifiable up to 95%

  • ≥ 600 credit score
  • Able to confirm income in traditional manner
  • Allows for 15% gross-up of line 150 from NOA for income qualification

Genworth Business For Self (ALT. A) > 2 years up to 90% LTV

  • ≥ 600 credit score
  • Min. 2 years business for self
  • Proven 2-year history of managing credit and finances

Case Studies

BFS Expanded

Michael and Lucy have been self-employed marketing consultants for 10 years and have built a successful business. The couple is currently renting a home in downtown Toronto and looking to purchase in the area.

Michael & Lucy

Michael and Lucy have been self-employed marketing consultants for 10 years and have built a successful business. The couple is currently renting a home in downtown Toronto and looking to purchase in the area.

They were not able to provide traditional income documentation in order to be considered for an insured BFS stated income application. They were, however, able to confirm their income and BFS tenure with alternative documentation and worked with a mortgage broker who could assist them with their search for a mortgage to fit their specific needs.

Michael and Lucy were approved for a mortgage through their mortgage broker with B2B Bank's BFS Expanded solution that allowed them to prove their income in a flexible manner!*

 
Purchase price of home $625,000
Requested Mortgage Amount $500,000
Loan to value 80%
Income documentation
  • 12 months business bank statements showing deposits over $300,000
  • Most recent NOA to prove no income tax arrears
  • Letter of Attestation
  • Confirmation of BFS for two years
Credit Scores Excellent credit history with 779 for Lucy and 808 for Michael
Ratios
  • GDS/TDS ratio is 28%/31%
  • Based on 5-year benchmark, 25-year amortization and minimal debts carried by the couple
Rate
  • 3.54% - two-year posted rate of 3.14% + 0.40% deal-specific premium**

At B2B Bank, you'll find a knowledgeable Business Development team, experienced credit managers, competitive compensation and an impressive range of mortgage solutions. To us, that's what banking that works for brokers is all about.

*The calculations shown are for illustration purposes only. Actual rates and amounts may differ. Assumes that the interest rate remains constant throughout the amortization period. Rates are subject to change at any time.

** Actual rates may vary and are subject to change at any time.

For illustration purposes only. The images of persons featured in this case study are images of models and are used for illustrative purposes only; none of these images are actual clients of B2B Bank.

Mortgages are funded by, registered in the name of, and administered and serviced by B2B Bank. ®B2B BANK and BANKING THAT WORKS FOR BROKERS are registered trademarks of B2B Bank.

Expanded Rental

Earl has been a self-employed auto mechanic for over 10 years and built a successful business. He has saved up for a down payment and is looking to purchase a rental property in suburban Toronto.

Earl

Earl has been a self-employed auto mechanic for over 10 years and built a successful business. He has saved up for a down payment and is looking to purchase a rental property in suburban Toronto.

After further discussion with his mortgage broker, Earl has been advised to confirm his income and BFS tenure with alternative income documentation.

Through his mortgage broker, Earl was approved for B2B Bank’s Expanded Rental solution that allows him to prove his income in a flexible manner (BFS Expanded). Using up to 75% of his gross deposits and 80% of his rental income, we were able to qualify Earl under the credit guidelines and free up his cash flow with a 35-year amortization.*

 

 
Estimated value of home $485,000
Requested loan size $362,000
LTV 75%
Credit score 682 Beacon Score
Income documentation
  • 12 months business bank statements showing deposits of $100,000
  • Most recent NOA showing no income tax arrears
  • A signed Letter of Attestation certifying the forecasted personal income for the next 12 months
  • Articles of incorporation confirming his business has been in existence for more than two years
  • Signed lease agreement to confirm monthly rental income
Other income
  • Monthly rental income of $2,400 from the subject property
Ratios
  • 35% GDS/38% TDS
  • Based on 5-year qualifying rate
  • 35-year amortization
Rate
  • 3.79% - two-year posted rate of 3.09% + 0.70% deal-specific premium**

At B2B Bank, you'll find a knowledgeable Business Development team, experienced credit managers, competitive compensation and an impressive range of mortgage solutions. To us, that's what banking that works for brokers is all about.

* The calculations shown are for illustration purposes only. Actual rates and amounts may differ. Assumes that the interest rate remains constant throughout the amortization period. Rates are subject to change at any time.

** Actual rates may vary and are subject to change at any time.

For illustration purposes only. The images of persons featured in this case study are images of models and are used for illustrative purposes only; none of these images are actual clients of B2B Bank.

Mortgages are funded by, registered in the name of, and administered and serviced by B2B Bank. ®B2B BANK and BANKING THAT WORKS FOR BROKERS are registered trademarks of B2B Bank.

Equity 50

Jane and John Smith have been living in Toronto for three years. They are looking to refinance their single family home to free up some cash flow while John looks for work.

Jane & John Smith

Jane and John Smith are married and have been living in their home in Toronto for three years. Jane has managed a retail store for the past 10 years and earns $70,000 per year. John is currently staying at home to care for their one child while he looks for work in his field. John is a professional in the manufacturing sector and expects to be back to work soon.

The couple is looking to refinance their single family home to free up some cash flow so they can live a more comfortable lifestyle while John looks for work. They expect to take advantage of pre-payment privileges once John is back at work.

B2B Bank's Equity 50 mortgage was the right solution for John and Jane.*

 
Appraised value of home $800,000
Requested Mortgage Amount $400,000
Amortization requested 35 years
Debts to pay out (including existing mortgage, high interest rate credit cards, car loan and line of credit) $390,000
Income Stated in application: $70,000 and declared in Canada Supported by most recent NOA only to confirm no tax arrears owing
Credit scores 745 for Jane and 732 for John
GDS/TDS Ratio 41%/46%
5-year Variable Rate 2.40% + 0.50% = 2.90% or P-0.10%**
   
Previous mortgage payment $2,700 per month
New mortgage payment with B2B Bank Equity 50 $1,500 per month (variable rate with fixed monthly payments)
Savings for John and Jane $1,200 per month

At B2B Bank, you'll find a knowledgeable Business Development team, experienced credit managers, competitive compensation and an impressive range of mortgage solutions. To us, that's what banking that works for brokers is all about.

* The calculations shown are for illustration purposes only. Actual rates and amounts may differ. Assumes that the interest rate remains constant throughout the amortization period. Rates are subject to change at any time.

** Actual rates may vary and are subject to change at any time.

For illustration purposes only. The images of persons featured in this case study are images of models and are used for illustrative purposes only; none of these images are actual clients of B2B Bank.

Mortgages are funded by, registered in the name of, and administered and serviced by B2B Bank. ®B2B BANK and BANKING THAT WORKS FOR BROKERS are registered trademarks of B2B Bank.

Ensuring Success

Underwriting Criteria

Insured and Conventional Underwriting Guidelines »

Expanded and Alternative Underwriting Guidelines »

Application Process

How to avoid delays in processing your applications
1

Fax all documentation to: 1.877.812.8839. At the time of approval, the underwriter will email you the contact information for the Credit Administrator managing the document collection for your application.

2

Doc Tracking is available via Expert to assist you with document fulfillment.

3

Standard documents and information to submit upfront to avoid processing delays:

  • Credit Bureau dated within 30 days of application date
  • Purchase and Sale Agreement and MLS
  • For BFS Expanded - 12 months business bank statements
  • Detailed notes - detailed rationale so your underwriter has a full picture of the application
4

Make sure all docs are received and approved 10 business days prior to the funding date so that your transaction closes on time.

5

Appraisal reports must be ordered directly through NAS or Brokerworx. Appraisals must be received directly from NAS or Brokerworx (email to appraisals@b2bbank.com). If the commitment indicates that B2B Bank must order the appraisal, we will do so after the signed commitment is received and the income docs are confirmed. If you should have an appraiser you would like to use that is not on the NAS or Brokerworx list, please contact your Credit Manager to see if we will accept the appraisal.

6

Instructing your application:

  • For purchases - when the income is confirmed, and the signed commitment, purchase and sale agreement and MLS are received and approved.
  • For refinances - when the income is confirmed, the signed commitment is received and the appraisal is approved.
7

The solicitor is usually instructed within 48 hours after we instruct our third-party closing service provider.

8

Funds are released once all documents are received from the solicitor and conditions are met by the closing service provider, who will vet the docs before requesting funds from B2B Bank.

Call your Business Development Manager to learn more about how we can help you build your business!

Here are 6 important tips for your deal notes to avoid delays in the adjudication of your applications:
1

Identify who is on title and describe how the applicants on title are related.

2

If poor credit history, give explanation for the low beacon score (e.g., bankruptcy, consumer proposal).

3

If equity take-out explain the purpose of the funds.

4

If your client owns other properties, provide details of the other properties and include PITH and condo fees if applicable.

5

Describe the type of income docs that are being used to derive your client's income.

  • For BFS income - are you using stated or full documentation?
  • If full documentation, is the income declared from line 150 of the NOAs? If so, for which years and for what amount?
6

Indicate whether you are open to having the deal adjudicated under alternative guidelines if your client doesn't fit within B2B Bank's prime lending or pricing programs.

Call your Business Development Manager to learn more about how we can help you build your business!

Resources and Support Information

Posted Mortgage Rates

Mortgage Rates »

Business for Self Solutions

BFS Mortgage Solutions At a Glance

BFS Expanded

BFS - New Professional

BFS - less than two years

BFS - more than two years

Equity 50

Genworth Insured Business for Self

Homeowner's Kit

Home Equity Line of Credit

Standard Residential Overview Alternative

Standard Residential Overview Expanded

Standard Residential Overview Insured and Conventional

 

Contact your Business Development Manager to get started

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