A-Lender vs B-Lender Mortgages in Canada: When to Use Each
One of the most critical decisions a mortgage broker makes: should this client go to an A-lender or a B-lender? Get it wrong and your client either overpays on rate or gets declined unnecessarily.
A-Lender Overview
A-lenders include Canada's Big 6 banks (RBC, TD, BMO, Scotia, CIBC, National Bank) and monolines (MCAP, First National, RMG, and others).
Typical A-Lender Requirements:
- Credit score: 680+ (some accept 620+ with conditions)
- GDS: ≤ 39%
- TDS: ≤ 44%
- Full income documentation (T4s, NOAs, or 2 years T1 for self-employed)
- Stress test qualification: max(rate + 2%, 5.25%)
- Standard property types
Best for: Salaried employees with good credit, straightforward deals, best rates.
B-Lender Overview
B-lenders (Equitable Bank, Home Trust, MCAN, Community Trust, Haventree, Bridgewater, and others) serve borrowers who don't fit A-lender criteria.
Typical B-Lender Requirements:
- Credit score: 550-679 (varies by lender)
- GDS: Up to 45-50%
- TDS: Up to 50-55%
- Stated income accepted (self-employed)
- More flexible property and location criteria
- Lender fees: 0.5-2% of mortgage amount
Best for: Self-employed, bruised credit, non-standard properties, higher debt ratios.
When to Place with a B-Lender
| Scenario | A-Lender? | B-Lender? | |----------|-----------|-----------| | Credit 720+, salaried, 20% down | Yes | No | | Credit 650, good income | Maybe | Likely | | Self-employed, stated income | No | Yes | | GDS at 42% | No | Yes | | Recent bankruptcy (2+ years discharged) | No | Yes | | Non-standard property (rural, mixed-use) | Sometimes | Yes | | New to Canada, < 2 years | Some programs | Yes |
The Challenge: Finding the Right B-Lender
Not all B-lenders are equal. Each has different:
- Credit score floors and tiers
- LTV limits per credit tier
- GDS/TDS maximums
- Fee structures
- Geographic coverage
- Property type acceptance
- Self-employed program specifics
The problem: Most brokers only know 3-5 B-lenders. There are 15+ active B-lenders in Canada, plus credit unions with B-lender-style programs.
How BIPS Solves This
BIPS (bips.ca) tests your deal against ALL lenders — A and B — simultaneously:
- Enter the deal details once
- BIPS calculates GDS, TDS, LTV, stress test
- Tests against 40+ lenders (all A-lenders, B-lenders, and credit unions)
- Returns every qualifying lender ranked by rate
- Shows which tier the client qualifies for at each lender
The result: You see if any A-lenders will accept the deal AND the best B-lender options, all in 2 minutes.
Rate Comparison (2026 Averages)
| Lender Type | 5-Year Fixed Rate | Lender Fee | |-------------|-------------------|------------| | A-Lender (monoline) | 4.29-4.69% | None | | A-Lender (big bank) | 4.49-4.99% | None | | B-Lender (prime credit) | 5.49-6.49% | 0.5-1% | | B-Lender (stated income) | 5.99-7.49% | 1-2% | | Private | 8-15%+ | 2-5% |
Strategy: Check All Lenders First
Don't assume a client is "A" or "B" before checking. Some scenarios surprise you:
- A client with 660 credit might qualify at an A-lender credit union
- A self-employed client with strong T1 income might pass full-doc A-lender
- A B-lender might offer a better product than the A-lender option
BIPS removes the guesswork. Enter the deal, see ALL qualifying lenders, then choose the best option for your client.
Getting Started
Try BIPS free for 14 days: bips.ca/register
Enter your next deal and see the full range of A-lender and B-lender options in under 2 minutes.