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What B Lenders Are Offering in 2025: More Flexibility Than You Think

What B Lenders Are Offering in 2025: More Flexibility Than You Think

In today’s lending environment, where many borrowers no longer qualify with traditional banks, B lenders have become essential partners for those with non-traditional income, high debt loads, or unique property needs.

Here’s a breakdown of some of the most competitive and flexible options currently available in the B lending space:

1. 40-Year Amortization Options (Flex 40)

One of the standout features in the alternative lending market is the introduction of the 40-year amortization, allowing borrowers to reduce monthly payments and improve affordability. This is especially helpful for those struggling to meet standard stress test ratios.

  • No stress test required (qualifies on contract rate)

  • 55/55 GDS/TDS ratios

  • Available for self-employed borrowers with as little as 1 year of business history

  • Accepts 6–12 months of bank statements to verify income

  • Mortgage amounts up to $1.5 million

  • Available for both purchases and refinances, up to 80% LTV (location-dependent)

2. Self-Employed Income Flexibility

B lenders are now more open than ever to working with self-employed borrowers, offering programs that:

  • Gross up sole proprietor income by 25%

  • Allow add-backs like amortization and business expenses for incorporated clients

  • Accept contributory income (e.g., rent from family members with proof of deposits)

  • Use assets as income (e.g., RRSPs or investment accounts calculated monthly up to 25% of total qualifying income)

3. Alternative Qualification Tools

Some lenders now offer bank statement income calculators, which make it easier to assess net deposits against industry-specific expense ratios. This simplifies the qualification process for brokers and clients alike.

4. Extended Ratio Products (e.g., 70/70 GDS/TDS)

These products are designed for borrowers with high consumer debt or lower credit scores, especially those impacted by rising rates and variable mortgage payments.

  • Fully verified income only

  • Owner-occupied homes

  • Minimum 640 beacon score

  • Max LTV of 65%

  • Lending areas may be limited, but major urban centers are usually covered

5. Institutional Private Solutions

For those who don’t fit within even the flexible guidelines of standard B products, some lenders now offer institutional private options that:

  • Require only declared income (must be reasonable and supported by an exit strategy)

  • Allow interest-only or 40-year amortization

  • Have no GDS/TDS ratios

  • Can fund in as little as 5 business days

  • Open after 90 days, with lender fees typically around 2%

The New Definition of a “B Client”

The modern B client is no longer just someone with bruised credit. Increasingly, they’re:

  • Small business owners or incorporated professionals

  • Borrowers who were previously A clients but have since leveraged credit due to rising living costs

  • Homeowners seeking to refinance or access equity without selling

Final Thoughts

With more flexible income programs, higher amortizations, and region-specific exceptions, B lenders are positioning themselves as problem solvers in a rapidly changing market. These options are particularly valuable during renewal cycles or for clients with unconventional financial profiles.

As always, the best path forward is to assess each situation on a case-by-case basis—and work with lenders who take the time to understand it.

BOTTOM LINE

B lenders are no longer a last resort—they're a strategic solution for borrowers who need flexibility. Whether you're self-employed, refinancing, or navigating a complex financial situation, today's alternative lending products offer creative paths to approval that traditional banks can't. The key? Partner with professionals who know how to match your situation with the right lender and product.

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