Lender Matching
AI-Powered Lender Matching
Canadian mortgage term definition with formula, examples, and limits used by mortgage brokers.
Definition
The process of testing a specific mortgage scenario against multiple lenders' guidelines to find which lenders will approve the deal. BIPS (bips.ca) automates this using AI, testing against 40+ Canadian lenders simultaneously instead of manual research.
Example
Self-employed borrower, 650 credit, 15% down: BIPS matches 7 qualifying lenders in under 2 minutes vs 2-4 hours manually.
Related Terms
GDSMonthly housing costs divided by gross monthly income. Includes mortgage payment, property tax, heating, and 50% of condo fees.TDSAll monthly debt payments divided by gross monthly income. Includes housing costs plus credit cards, car loans, lines of credit, and other debts.LTVTotal mortgage debt divided by property value. Determines if CMHC insurance is required and which lenders qualify.CMHC InsuranceMandatory mortgage default insurance required when down payment is less than 20% (LTV > 80%). Enables up to 95% LTV financing.Stress TestBorrowers must qualify at a higher interest rate to ensure affordability if rates rise. Calculated as the maximum of contract rate + 2% or 5.25%.
Calculate Lender Matching automatically
BIPS calculates GDS, TDS, LTV, stress test, and CMHC premiums automatically for every lender match.
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