As homebuyers and homeowners face tougher qualification criteria from traditional banks, B lenders have become an increasingly vital option in the Canadian mortgage landscape. If you’ve recently searched “B lender mortgage rates,” you’re not alone—interest in alternative mortgage solutions is on the rise, and for good reason.
At Cannect, we’re committed to helping Canadians secure the best mortgage for their unique situation—whether that’s through a major bank or a reputable B lender. In this post, we’ll explore what B lenders are, why more people are turning to them, and the current trends shaping B lender mortgage rates in 2025.
Who Are B Lenders, and Why Do They Matter?
B lenders are financial institutions that cater to borrowers who may not qualify for mortgages through traditional A lenders like major banks and credit unions. This could include:
- Self-employed individuals
- Borrowers with bruised credit
- Homeowners with non-traditional income
- Those carrying high debt loads
While B lender mortgage rates tend to be slightly higher than A lender rates, they offer flexible approval criteria and faster turnaround times.
What Are the Current B Lender Mortgage Rates in Canada?
As of mid-2025, B lender mortgage rates typically range from 6.5% to 9.5%, depending on the borrower’s credit profile, income verification, property location, and loan-to-value ratio (LTV).
At Cannect, we work with a range of trusted B lenders and also offer our in-house lending solution through the Cannect Mortgage Investment Corporation (MIC)—often with lower fees and competitive rates compared to other B lenders.
Key Trends in B Lender Mortgage Rates for 2025
Stabilizing Rates After Aggressive Hikes
After a period of aggressive interest rate hikes by the Bank of Canada, rates have begun to stabilize in 2025, and many economists are predicting gradual reductions. While B lenders do not always follow BoC rates directly, lower central bank rates can lead to more favorable pricing on B mortgages over time.
Tighter Bank Guidelines Driving Demand
Big banks have tightened lending criteria, making it difficult for self-employed borrowers or those with minor credit issues to get approved. As a result, demand for B lenders is rising, putting pressure on rates, but also pushing lenders to remain competitive.
Short-Term and Interest-Only Options Gaining Popularity
Many B lenders (including Cannect) offer 1- or 2-year fixed terms and interest-only options, giving borrowers flexibility while improving their financial standing or waiting for rates to drop further.
Lower Loan-to-Value (LTV) = Lower Risk, Better Rates
Cannect’s average LTV is among the lowest in the industry, which means less risk for our investors and better rates for our borrowers. While other B lenders may go as high as 80% LTV, we keep our lending tighter to protect both sides of the table.
Is a B Lender Mortgage Right for You?
If your bank says “no,” don’t take it personally—take it as your cue to talk to someone who works for you, not the bank. At Cannect, we don’t earn commissions on placing you with a specific lender. That means we’ll guide you toward the best solution for your financial needs, whether that’s a B lender mortgage, a home equity loan, or a refinance.
Final Thought
B lender mortgage rates are trending because more Canadians are waking up to the reality that the banks don’t work for them, and Cannect does. Whether you’re buying a home, refinancing, or consolidating debt, we’ll give you a clear, honest breakdown of your options and help you make the most financially sound decision, without middlemen, markups, or confusion.
Ready to See What You Qualify For?
Get pre-approved in minutes with Cannect, or contact our non-commissioned team today for a free, no-obligation consultation.
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