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Canadian Western Bank’s Niche in the B-Lending Space: What Realtors and Borrowers Should Know

Canadian Western Bank’s Niche in the B-Lending Space: What Realtors and Borrowers Should Know

In today’s tightening mortgage environment, understanding lender nuances can mean the difference between a declined file and a smooth approval. Matthew Sherriff from Canadian Western Bank (CWB) — soon to be operating under the National Bank umbrella — shared some valuable insights into how they stand out in the B-lending market and what makes their programs unique.

1. Ratios and Flexibility

CWB’s standard income-to-debt ratios sit at 55% GDS / 60% TDS, but they can go higher — sometimes up to 65% TDS — when there’s a strong mitigating factor. In rare, well-supported cases, approvals can stretch up to 70% TDS.

Mitigating factors include:

  • Significant liquid assets (e.g., $80K+ in savings).

  • Secondary borrowers with strong credit and income.

  • Demonstrated cash flow surplus.

Unlike some lenders, CWB doesn’t cut loan-to-value (LTV) or add rate premiums just because ratios are higher, as long as the deal makes sense.

2. Competitive Pricing and No Hidden Premiums

Rates are tied to the highest income earner’s beacon score — a major advantage for clients where one borrower has strong credit.
They offer:

  • Low rental premium of 0.25% (market norm is ~0.50%).

  • Rates competitive with Excalibur and often better than Home Trust or Equitable, especially for “A-minus” clients.

  • No surprise markups at commitment — what you see on the rate sheet is typically what you get.

3. Rental Income Treatment

CWB’s rental income policy is highly realtor-friendly:

  • 80% offset for non-subject rentals (no ownership partitioning — 100% of rent is used regardless of ownership percentage).

  • 95% add-back for up to three basement suites in owner-occupied properties.

  • This can make a major difference for investors co-owning properties who might be restricted elsewhere.

4. Unique Property Types Accepted

CWB finances several property types that many lenders won’t touch:

  • Agricultural Land Reserve (ALR) properties — rare in the B-space.

  • Age-restricted condos.

  • Self-managed strata.

  • Strata properties over 30 years old.

5. Self-Employed Borrower Programs

For business owners, CWB’s BFS (Business for Self) program offers flexibility:

  • 6 months of bank statements for income confirmation (12 months for certain commission-based roles like realtors).

  • Ability to use actual expense ratios rather than flat margins.

  • Strategic document requirements to avoid unnecessary declines — staying under $500K stated income or $1M+ revenue can help avoid needing business financials.

6. Portability and Prepayment Advantages

Portability is uncommon in the B-lending world, but CWB offers it. This means clients can move their mortgage to a new property without triggering large penalties — a critical advantage in today’s high-rate market.
They also:

  • Pay brokers full compensation on ports, renewals, and refinances (even for small increases).

  • Allow partial penalty avoidance when upsizing a mortgage.

7. Foreign Income and Residency

CWB will consider income from U.S. and U.K. employers if the borrower is a Canadian resident living in Canada — even if taxes aren’t filed locally, though this requires careful review.

BOTTOM LINE

CWB’s niche lies in extended ratio flexibility, favorable rental income treatment, competitive pricing without hidden premiums, and acceptance of unique property types. For realtors, this means more tools in your toolbox for clients who may have been turned away by traditional A-lenders.

Level Up Mortgages is a mortgage broker team focused on helping the self employed, new immigrants, non-residents, and investors, access best rate and alternative lending in Canada. We have been nominated for best up and coming broker in Canada in 2021 and have been on CTV News and various publications because of our education-first approach to helping you always stay a step ahead of the process. Reach out to us for access to our first-time buyer course or a mortgage strategy session.

See What You Qualify For Or Contact Paul To Get Your Pre-Approval.

  • Paul Davidescu (www.levelupmortgages.com)

  • Level Up Mortgages

  • 604-809-3188

  • paul(at)levelupmortgages.com

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Paul Davidescu