Do B lenders charge fees?

What Ontario borrowers should know

The best place to start is with the specific reason the application falls outside conventional lending guidelines. Sometimes, but the exact answer depends on the lender, product, borrower profile, and current mortgage rules. A targeted application is usually more effective than sending the same file to several lenders and hoping one uses a different rule.

Fees are common in some alternative files

What changes the answer is that depending on the lender and transaction, there may be lender fees, brokerage fees, appraisal costs, legal costs, and other closing expenses.

Ask for the dollar amount, not just a percentage

A useful distinction is that a percentage can sound small until it is applied to a large mortgage. Review the actual dollars and whether the fee is paid from cash or deducted from proceeds.

Compare net benefit

The important detail is that a higher-fee mortgage may still solve an important problem, but the borrower should understand what it accomplishes and whether a lower-cost structure is available.

The cost question

Consider a self-employed borrower whose tax returns show modest personal income because of legitimate business deductions. A B lender may have a program that evaluates the business more flexibly than a prime bank.

Documents to have ready

• or request the decline or lender feedback, if one has already been received
• or request income documents that match the way you are actually paid
• or request current debts, monthly obligations, and available savings or equity
• or request property details, purchase timeline, and any financing deadlines