A mortgage agent is reviewing an application for a B-lender mortgage for an un-insurable property in BC. The borrower, Mr. Chen, has clear title to his property, valued at $900,000, and is requesting $400,000. He reports an income of $50,000 from occasional contract work, which is difficult to verify using standard documentation. What is the maximum Loan-to-Value (LTV) Mr. Chen can typically expect from a B-lender on an equity mortgage, assuming good credit and no other outstanding debt?

Question: A mortgage agent is reviewing an application for a B-lender mortgage for an un-insurable property in BC. The borrower, Mr. Chen, has clear title to his property, valued at $900,000, and is requesting $400,000. He reports an income of $50,000 from occasional contract work, which is difficult to verify using standard documentation. What is the maximum Loan-to-Value (LTV) Mr. Chen can typically expect from a B-lender on an equity mortgage, assuming good credit and no other outstanding debt?

Answer options:

• 95% LTV due to strong equity. ✅ 80% LTV, a common maximum for uninsured B-lender mortgages.
• 65% LTV due to unverified income.
• 50% LTV due to the property being un-insurable.

Correct answer: 80% LTV, a common maximum for uninsured B-lender mortgages.

Explanation: B-lenders typically cap their Loan-to-Value (LTV) at 80-85% for uninsured mortgages, regardless of equity, as this is a common risk mitigation standard in the alternative lending space, especially when verifiable income is challenging.