Option A
B-lender mortgage
- Alternative institutional lending
- Often still requires substantial income and credit review
- Can suit non-standard income or repaired credit depending on the lender
- Rates and fees can be higher than prime lending
Mortgage comparison
Private Mortgage vs B Lender in BC
Compare B-lender and private mortgage paths using qualification focus, property equity, total cost, term, documentation and exit strategy.
A B-lender mortgage and a private mortgage can both be alternatives to prime lending, but they usually solve different problems. A B lender generally remains an institutional mortgage with broader income and credit underwriting, while private financing may place more emphasis on property equity, marketability and a credible short-term exit.
Option B
Private mortgage
- Often more property/equity focused
- Commonly shorter-term financing
- Can carry higher interest and transaction fees
- A realistic repayment, refinance or sale exit is especially important
Decision questions
Ask the same questions of both options.
Why does prime financing not fit right now?
Can the file support an institutional alternative?
What is the complete interest + fee + legal/appraisal cost?
How much equity remains after the new financing?
What specifically will allow repayment or refinancing by maturity?
Apply the comparison