Rental property

Insured, Conventional and Alternative Mortgages

Owning a rental property is a strategic investment for many Canadians. Qualified clients could realize benefits including positive cash flow, debt reduction and asset value appreciation.

Solutions

B2B Bank can help you find the right mortgage solution for your clients’ rental property.

  Insured Conventional Alternative
Property type 2 – 4 units 1 – 4 units 1 – 4 units
Loan amounts $50,000 – $500,000 (2 – 4 Units)
VRM: Minimum $75,000
$50,000 – $500,000 (1—2 units)
$75,000 – $500,000 (3—4 units)
VRM: Minimum $75,000
$75,000 – $500,000
LTV1 Up to 80% Purchase: Up to 80%
Refinance: Up to 75%
Up to 80%
Max. amortization1 25 years 25 years 25 years
Min. credit score1 680 620 580
Max. GDS/TDS2 < 680 = 35%/42%
≥ 680 = 39%/44%
< 680 = 35%/42%
≥ 680 = 39%/44%
< 680 = 35%/42%
≥ 680 = 39%/44%

Premiums and Fees

N/A N/A

Alternative lender fee: Up to 1%

Alternative commitment fee: 
Greater of $750 or 1%


Note: Rental mortgages may have rate premiums applied. 

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
  • Portability




Notes

  • All properties must be legal rental units.
  • Student rentals, time share properties, including condo hotels, and short-term rentals are not eligible.
  • 50% of the rental income can be added to the total income. Property tax and heating costs are excluded from the debt ratio calculation. 50% of applicable condo fees are included in debt ratio calculations.

Eligibility

Eligible

  • Move-in ready 
  • Must be suitable for year-round occupancy 
  • On municipal water/sewage or well/septic 
  • Must have permanent heating source 
  • Acceptable lending location 

Ineligible

  • Mobile homes
  • Log homes
  • Historical or heritage homes
  • Converted properties
  • Boarding houses/rooming homes
  • Rental pools
  • Condo hotels
  • Co-operative housing
  • Commercial/industrial properties
  • Agricultural properties

 



Resources


 1Debt 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.

2The pre-payment privilege is non-cumulative and is available after the first anniversary of the mortgage. 

 All mortgages are funded by, registered in the name of, administered and serviced by B2B Bank.