Types of B2B Bank mortgages
B2B Bank provides both fixed and variable-rate mortgages. Variable-rate mortgages are available for three and 5-year terms, ranging from 4.72% to 4.73%. The terms for fixed-rate mortgages range from 6 months to 10 years. Depending on the term, the fixed rates range from 5.56% to 6.93%, with higher rates applied to open mortgages.
Based on the property type and borrowers’ financial situations, B2B Bank offers a range of mortgage solutions.
- Standard Residential mortgages. Standard residential mortgages from B2B Bank are good for purchasing residential properties, refinancing, or transferring an existing mortgage. 1-4 unit owner-occupied properties are eligible for standard mortgage options. The maximum amortization term is 25 years for insured and alternative non-conforming mortgages, 30-35 years — for conventional mortgages, and 30 years — for alternative conforming mortgages.
- Rental property mortgages. To finance a rental property purchase, there are insured, conventional, and alternative mortgage options at B2B Bank. 2–4 unit properties qualify for an insured mortgage, while 1-4 unit properties are eligible for conventional and alternative mortgages. The maximum amortization term is 25 years.
- Vacation/secondary home mortgages. Insured, conventional, and alternative mortgages from B2B Bank can also help purchase vacation or secondary homes. The eligible properties for an insured mortgage are owner-occupied second or vacation homes. For a conventional mortgage, the eligible properties are 1-2 unit second homes or 1-unit vacation homes. For alternative mortgages, the eligible properties are 1-2 unit second homes. The maximum amortization term is 25 years.
- Business-for-self mortgages. Sometimes, self-employed applicants may not qualify for traditional mortgage options. Therefore, B2B Bank offers financing options tailored to their unique situations. With these financing options, self-employed borrowers can purchase a 1-4 unit owner-occupied property, 1-2 unit second home, 1-unit vacation home, or 1-4 unit rental property. The maximum amortization term can be up to 30 years.
- Equity program. Under the Equity program from B2B Bank, salaried or self-employed applicants that might not meet standard requirements can get financing for buying a 1–4 unit owner-occupied residential property. The maximum amortization term is 25 years.
- Net Worth program. The Net Worth Program from B2B Bank allows applicants to get financing to purchase 1-4 unit owner-occupied and rental properties, 1-2 unit second homes, or 1-unit vacation homes. To qualify for such a mortgage, a borrower must have a sufficient credit score, moderate income, and a minimum of $150,000 in liquid assets. In addition, the maximum amortization term is 30 years.
- Homeowner’s Kit. With a Homeowner’s Kit from B2B Bank, a borrower can get two lending solutions: a mortgage and a Home Equity Line of Credit (HELOC). The eligible properties for a Homeowner’s Kit are 1-4 unit properties, either new constructions or existing ones, and owner-occupied properties. A mortgage portion features flexible repayment schedules, with an opportunity to choose from monthly, weekly, bi-weekly, accelerated weekly, or accelerated bi-weekly payments. A HELOC portion involves monthly interest payments only. The maximum amortization term for a mortgage portion is 30 years. HELOC doesn’t have a maximum amortization term since it is a revolving credit.
How to apply for a B2B Bank mortgage?
B2B Bank mortgages are available through B2B Bank’s partner brokers. Upon assessment of your borrowing needs, your mortgage broker will submit a mortgage application to B2B Bank on your behalf.
Requirements
To qualify for a B2B Bank mortgage, you must be a Canadian citizen or resident of the age of majority in your province or territory. To submit a mortgage application to B2B Bank on your behalf, your mortgage broker must have the following documents handy:
- Purchase and sale agreement
- Proof of down payment
- MLS listing (if applicable)
- Letter of Employment and current pay stub
- T4s/T1s and corresponding Notices of Assessment (NOA) for the most recent two years
Pros and cons
B2B Bank mortgages have definite advantages:
- Financing options for clients with both traditional and non-traditional circumstances
- An opportunity to choose between a fixed and variable interest rate
- An opportunity to choose between an open and a closed mortgage terms
- Prepayment privileges available for certain financing options
Here are the disadvantages to be aware of:
- Mortgage repayment before the maturity date involves prepayment penalties
- Rates are subject to change without a prior notice
- B2B Bank doesn’t have a mobile banking app to manage a mortgage account on the go
How to make a payment
B2B Bank mortgage payments will be in the form of pre-authorized debits from your B2B Bank account.
