Private mortgages are becoming a popular option for Canadians. In the last 10 Years, we have seen Banks, Trust Companies, Credit Unions tighten their lending guidelines. So there are lenders that specialize in doing mortgages that cannot be done at a traditional bank.
Typically borrowers are being turned down because: Poor Credit, Bankruptcy, Low Income, Self Employed that does not show all their income, Property Type, Property Location, Divorce, Property Tax Arrears, Income Tax Arrears, Consumer Proposal, You are in Rent to Own Situation, You need funds temporarily to Repair/Fix your Property.
We have been advising borrowers for 20 Years! We generally advise clients to setup private mortgage for 1 year only if possible. Often what is not considered is, "What is your Exit Strategy?" We assist you in developing a plan to arrange the funds you need and then 1 year later, we arrange to switch to a more traditional lender.
Often these lenders do not require income confirmation(it does help however). They rely on the quality of the property they are securing. Typically you should expect private funds to be 8%-11%. It is usualy setup as interest only payments for 1 year(but not always). We will then assist you again in 1 year time and put you in a better posiition.
What will I need to provide?
- Lawyer you would like to work with
- Mtg Application: We can do this over the phone or apply online
- It is common that lender require appraisal to determine the value of the property
What are the Costs Involved?
- Private Lender rates depends on your situation. But you can expect 8-10% Keep in mind this is a short term solution. We usually plan to assist in getting your mortgage back to a major lender.
- We always like to prepare borrowers on Lending Fees: it can be 0% up to 4% Brokerage Fees: it starts at $1,500 and up
Unlike many industries that provide guidelines on fees(Lawyers, Dentists, Psychiatrist) - Private Money(it is determined by the investors and brokerage firm). It is important you work with a reputable brokerage firm that can advise you on this matter. Or if you are getting a mortgage(you want a second opinion), give us call.
Items that sometime borrower do not think about are: A. What is renwal fee?
B. What is NSF Charge?
C. What is Lending Fee?
D. Are there any hidden costs?
Some Brokerage firms do not disclose costs upfront. You want full transparency from a reputable company. You also want them to advise you on a "Exit Strategy" rather finding out later you have some costs and issues that you did not think about or was not expecting. No One likes Surprises!! We want your business, and we work in your best interest so that we can be your trusted expert mortgage advisor for life!!
CALL US NOW for No Cost Telephone Consultation: 1-866-562-6771
We have 20 Years of Experience and can answer all your questions.
Why would I use a private mortgage lender?
You would use a private mortgage under any of the following circumstances:
You want to purchase an unconventional property that a prime lender or bank won’t finance.
You need fast financing and don’t want to wait for a long approval process.
Your bad credit history means you are being turned down by conventional lenders.
You only need a short term loan.
You have nonconfirmable income that is preventing you from obtaining a traditional mortgage.
Apply now using our safe and secure online mortgage application