Hardmoney Loans
The term “hardmoney loans” refers to a style of lending by some private investors. Hardmoneyloans are usually lent against hard or tangible assets such as residential homes, commercial building or condominiums. They use the hard asset as collateral to secure the loan; this can result in a lower level of risk to the investor and a lower cost of borrowing.
People who provide hardmoney loans will look at your entire financial situation to determine if you are able to qualify for a loan. The amount of equity in your home could be a significant factor in determining the amount of money that lenders can give you. The hardmoneyloans industry has grown due the very restrictive lending practices that most Canadian banks adhere to. Today hardmoney loans are fairly common, there are government regulations that must be followed and all transactions are finalized by a lawyer.
Here are examples of circumstances that lenders will consider when they are trying to determine if you qualify for a loan.
1- You were recently laid off from your job and presently have no income. Hardmoneyloans are based on your assets but the fact that you will be able to get a job in the future and make the loan payments will work in your favor.
2- Home renovations may have cost more than you anticipated and you need the money to complete the work. Hardmoney loans consider the value of your property and the loan can be based on the value of the property of the completed home.
3- You may be retired or on a fixed income of some kind and would like to give your children some money. People in this situation may find that many of the major Canadian banks like RBC or BMO will not lend to people who are retired or on a fixed income. Our private hardmoneyloans can assist you in getting the money that you need.
4- You may be in a “power of sale” situation and you need to stop the proceedings before you lose all the equity that you have built up in your home. The property which is up for power of sale may have a significant amount of equity and the amount you owe the bank is small.
5- You have to take time off work due to a recent illness in your family, during this time you missed some payments, which resulted in a lower credit score. You are now back at work but need a loan to consolidate your debt; hardmoney loans may be a good option for you.
6- You are selling your home but need a bridge loan to cover you until you receive the money from the sale of your property. A short term bridge loan can provide you the funds required to complete the sale of your home. This is a complicated transaction but our mortgage brokers are trained to arrange these transactions.
7- You would like to consolidate some personal loans into one loan. These hardmoneyloans can cover wedding costs or emergency home renovations. A personal debt consolidation loan can be arranged by using the equity in your home as security. The additional security allow hardmoney loans to give you a lower rate of interest than your creditors presently charge.