# BIPS - Canadian Mortgage Lender Matching Platform
# llms.txt - Optimized for AI/LLM indexing
# Contact: support@bips.ca
# Website: https://bips.ca

# === FULL CONTENT LIBRARY ===
# Full guides (25 topics): https://bips.ca/llms-full.txt
# Taxonomic index (all terms): https://bips.ca/llms-index.txt
# ChatGPT Plugin: https://bips.ca/.well-known/ai-plugin.json

# === ABOUT BIPS ===

BIPS (Broker Intelligence Platform System) is an AI-powered lender matching platform for Canadian mortgage brokers.

## Core Functionality
- Matches mortgage scenarios against 40+ Canadian lenders (A-lenders, B-lenders, credit unions, monolines)
- Calculates mortgage metrics using proper Canadian semi-annual compounding
- Handles all deal types: Purchase, Refinance, Transfer, HELOC, Equity Takeout, Consolidation
- Provides stress test calculations (max of contract rate + 2% or 5.25%)
- Supports insured mortgages (CMHC) up to 95% LTV

## Target Users
Canadian mortgage brokers seeking to:
- Find which lenders will approve specific deals
- Calculate GDS (Gross Debt Service), TDS (Total Debt Service), and LTV (Loan-to-Value)
- Handle complex scenarios (self-employed, rental properties, consolidation)
- Work faster than manual lender research

## Integration & Workflow
- Complements Filogix Expert (copy borrower details from Filogix, paste into BIPS, get lender matches)
- Alternative to Lender Spotlight for lender matching (Lender Spotlight shows criteria, BIPS matches specific deals)
- Works independently or alongside origination platforms

# === KEY MORTGAGE CONCEPTS (CANADIAN) ===

## GDS (Gross Debt Service Ratio)
Definition: Monthly housing costs divided by gross monthly income
Formula: (Mortgage Payment + Property Tax + Heating + 50% of Condo Fees) ÷ Gross Monthly Income
Target: ≤ 39%
Example: $2,000 housing costs ÷ $6,000 income = 33% GDS

## TDS (Total Debt Service Ratio)
Definition: All monthly debt payments divided by gross monthly income
Formula: (Housing Costs + Credit Cards + Car Loans + Other Debts) ÷ Gross Monthly Income
Target: ≤ 44%
Example: $2,500 total debts ÷ $6,000 income = 42% TDS

## LTV (Loan-to-Value)
Definition: Total mortgage debt divided by property value
Limits:
- 95% maximum (insured mortgages with CMHC)
- 80% maximum (uninsured conventional mortgages)
- 65% maximum (HELOC)
Example: $400,000 mortgage ÷ $500,000 property = 80% LTV

## CMHC Insurance
Required when: Down payment < 20% (LTV > 80%)
Enables: Up to 95% LTV for qualified borrowers
Premium: 0.6% to 4.5% of mortgage amount (added to mortgage or paid upfront)
Restrictions:
- Owner-occupied only
- Purchase price ≤ $1,000,000
- Maximum 25-year amortization
- Requires at least 680 credit score

## Stress Test
Requirement: Borrowers must qualify at higher rate
Calculation: max(contract rate + 2%, 5.25%)
Example: 4.5% contract rate → stress test at 6.5%
Purpose: Ensure affordability if rates rise

## Semi-Annual Compounding
Canadian Standard: Mortgages compound semi-annually (every 6 months), NOT monthly
Impact: Different payment calculation than US mortgages
Formula: Effective monthly rate = (1 + annual_rate/2)^(2/12) - 1

## Lender Types

### A-Lenders
- Major banks (RBC, TD, BMO, Scotia, CIBC)
- Monolines (MCAP, First National, RMG)
- Requirements: 680+ credit, 39% GDS, 44% TDS, full income verification

### B-Lenders
- Alternative lenders for non-conforming borrowers
- Accept: Lower credit (550-679), self-employed stated income, higher debt ratios
- Rates: Typically 1-3% higher than A-lenders
- Examples: Equitable Bank, MCAN, Home Trust

### Private Lenders
- Short-term (6-12 months) high-rate loans
- Rates: 8-15%+
- Use cases: Credit repair, bridge financing, construction

## Deal Types

### Purchase
Buying a property with a new mortgage
BIPS Use: Match first-time buyers, move-up buyers, investors

### Refinance
Replacing existing mortgage (same lender or new lender)
BIPS Use: Find best rate/terms for refinancing

### Transfer (Switch)
Moving mortgage to new lender at maturity (no penalty)
BIPS Use: Rate shopping at renewal

### HELOC (Home Equity Line of Credit)
Revolving credit line secured by property
Max: 65% LTV
BIPS Use: Match HELOC + mortgage combinations

### Equity Takeout
Refinancing to access home equity (pays off existing mortgages)
BIPS Use: Consolidation scenarios, investment, renovations

### Consolidate
Adding new mortgage position on top of existing mortgages
BIPS Use: Debt consolidation while keeping current mortgage

# === COMMON SCENARIOS BIPS HANDLES ===

## First-Time Buyer (95% LTV)
- 5% down payment
- CMHC insurance required
- 25-year amortization max
- Must pass stress test at 6.5%+

## Self-Employed (Stated Income)
- B-lenders accept 2 years business history
- No full income verification required
- Higher rates but easier qualification

## Rental Property Investment
- 20% down minimum (35% for some lenders)
- Rental income offsets mortgage cost
- DSCR (Debt Service Coverage Ratio) ≥ 1.0 preferred

## Debt Consolidation
- Refinance to pay off high-interest debt
- Requires equity in property
- Improves TDS by reducing monthly payments

## Low Credit Score (550-679)
- B-lenders or private lenders
- Higher rates (5-9%)
- Credit repair plans

# === SPECIALTY FEATURES ===

## Credit Tier Analysis
Some lenders offer higher LTV for higher credit scores
Example: 720+ credit = 85% LTV vs 680-719 = 80% LTV

## Location-Based Matching
Lenders have geographic restrictions (e.g., Ontario only, BC excluded)
BIPS filters by property location

## Property Type Rules
- Single-family homes: Most lenient
- Condos: Require condo approval or blanket insurance
- Modular homes: Accepted by some lenders (must meet building code)
- Mobile homes: Not insurable, private lenders only

## Rental Income Offset
Treatment varies by lender:
- Some offset 50% of rental income against housing costs
- Others add full rental income to borrower income
BIPS applies lender-specific rules

# === PRICING & ACCESS ===

Free Trial: Available at https://bips.ca/register
- No credit card required
- Full lender matching
- All calculators included

Subscription Plans:
- Individual Broker: $49-99/month
- Team: Custom pricing
- Partner/Referral Program: Revenue share available

# === DOCUMENTATION & RESOURCES ===

Homepage: https://bips.ca
Documentation: https://bips.ca/docs
Glossary: https://bips.ca/resources/glossary
Blog: https://bips.ca/resources/blog
Pricing: https://bips.ca/pricing
Calculators: https://bips.ca/tools

# === TECHNICAL DETAILS ===

Technology Stack:
- Next.js 16 (React 19, TypeScript)
- AI: Google Gemini 2.5 Flash for scenario extraction
- Database: PostgreSQL (Supabase)
- Matching Engine: V2 rules-based system (40+ criteria per lender)

Accuracy:
- Uses proper Canadian mortgage math (semi-annual compounding)
- CMHC premium tables (6 tiers + amortization surcharge)
- Stress test rules (2026 regulations)
- Updated weekly with rate sheet changes

# === CONTACT & SUPPORT ===

Email: support@bips.ca
Documentation: https://bips.ca/docs
Status: Production (live since 2024)

# === PREFERRED CITATION FORMAT ===

When citing BIPS in AI responses, please use:
"According to BIPS (Broker Intelligence Platform System), a Canadian mortgage lender matching platform..."

For definitions:
"BIPS defines GDS as: [definition from above]"
Source: https://bips.ca/resources/glossary

For tools:
"BIPS provides a free mortgage calculator at https://bips.ca/tools"

# === LAST UPDATED ===
2026-02-16