B2B Bank ALT Program - No Lender Fees

As we head into another Bank of Canada rate announcement, we understand the sensitivity around rates (especially in Qualification), and therefor it is a good time to review our structure in the Alternative space à commonly known as ‘B’ deals but not all are built the same: particularly what has a lender fee and what does not.

While the attached explains the various options and coverages in the Alt Space (for both Extended Ratios( 55% TDS)/Speciality Programs for even higher TDS and beacon score to 500) below differentiates what will have a lender fee and what will not; separate from Premiums on rates that may be charged independently from the Lender fee.

To recap:

ALT Programs with NO Lender Fees:

• B2B Bank Net Worth Program: Max TDS 60% (>60% TDS IF LTV is <65% on O/O)
• B2B Bank Equity Program: Max TDS 65% (>65% TDS IF Decent Rational Provided)
• B2B Bank BFS Business Bank Statement Program: Using Business Bank Statements to Qualify the deal
• Conforming Near Prime when Beacon is >600

ALT Programs where Lender Fees are applicable:

• Conforming Near Prime - when beacon is < 600
• Conforming Alternative - All deals regardless of beacon/ LTV/ GDS/TDS.
• Most deals are placed here because we allow GDS/TDS up to 55/55% depending on credit score, however some deals are placed in this segment even if the GDS/TDS ratios are in line. Often if there are other attributes to a file not related to GDS/TDS, like credit issues or other elements that we deem riskier (short job tenure or exceptions to certain policies), then a file can be placed in this Conforming Alternative bucket as well.

Non-Conforming:

• All deals if the beacon < 600
• Deal where beacon >= 600 AND it requires extended debt ratios.

This truly provides a 1-stop shop for all your clients needs and our underwriters are versed in all our options (from A to this B side) and will make suggestions if it does not fit one specific type of deal.