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 Conforming Alternative Non-Conforming
Property type 2 – 4 units 1 – 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 $75,000 – $500,000
LTV1 Up to 80% Purchase: Up to 80%
Refinance: Up to 75%
Up to 75% Up to 65%
Max. amortization1 25 years 25 years 25 years 25 years
Min. credit score1 680 620 600 540
Max. GDS/TDS1 < 680 = 35%/42%
≥ 680 = 39%/44%
< 680 = 35%/42%
≥ 680 = 39%/44%
< 680 = 39%/44%
≥ 680 = 39%/44%
TDS 42%

Lender fee

N/A N/A

Lender fee may apply for lower beacon scores  

Lender fee will be the greater of $750 or 1%

Lender fee may apply for lower beacon scores  

Lender fee will be the greater of $750 or 1%   


Note: Rental mortgages may have rate premiums applied. 

Value-added features and options

 Pre-payment privileges2:

  • 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.

Subject property is either owner occupied with a legal suite or a full rental property.

50% of gross rental income to be added to eligible income (excluding property tax and utilities).

Non-subject rental properties:

Less: 100% P&I
Less: 100% property tax
Less: 50% condo fees

Surplus or deficit:

Any remaining surplus is added to income. Any deficit is added to the liabilities.



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. Additional conditions to the pre-payment privilege may apply.

* Excludes variable rate 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.