Reddit Thread Explodes Over B‑Lender Rejections

Newcomers, freelancers, and low-credit buyers are hitting walls — and they’re not quiet about it.

A viral Reddit thread on r/PersonalFinanceCanada is shining a harsh spotlight on a growing issue in Canada’s housing market: first-time buyers getting rejected by B‑lenders, often with little explanation and even fewer alternatives.

The post, which drew over 1,000 upvotes and hundreds of comments, features frustrated Canadians sharing their stories of being denied financing — not by the big banks, but by the very lenders meant to serve the “in-between” segment: self-employed, new-to-Canada, or credit-challenged buyers.

“Been here three years, full-time job, no debt — and they still said no,” one user wrote.
“I thought B-lenders were supposed to help people like me.”

What’s Going On?

B-lenders, which include institutions like Home Trust, Equitable Bank, and MCAP Eclipse, are often plan B for borrowers turned down by A-lenders. They typically charge higher rates in exchange for looser rules — but even they are tightening up.

• New OSFI guidelines and market pressure are making underwriters pickier.
• Lenders are scrutinizing gig income and business earnings more heavily.
• Appraisals are coming in low, forcing buyers to come up with bigger down payments.

The result? Even borderline borrowers are being left out — or pushed toward private lending.

Buyer Impact

For many buyers, this is more than frustrating — it’s devastating. Especially for newcomers or entrepreneurs who don’t yet have perfect credit files, B-lender rejection often means the end of the road.

Some are now considering co-signers, while others are choosing to wait, rebuild credit, or rent longer.

“The irony is, I can pay rent that’s higher than a mortgage — but I can’t get approved for the mortgage,” said another Reddit user.