Lender Hard Money
Many people are not aware of what a lender hard money does or help they can help you get the money you need. Hard money lender refers to the style of financing; these types of loans are based on a hard asset such as a home, commercial building, cottage or even raw land. The lender hard money want a property that they can place a mortgage on, most hard money lenders only provide money for 1st mortgages, they rarely will take on a second mortgage position.
Lender hard money will get an appraisal done on the subject property by an independent third party appraiser. The appraiser will give an unbiased opinion as to the value of the property; this opinion is based on local market conditions and comparable sales within the area. If you feel that the appraised value is low then you could ask the appraiser if all the positive points of your property were properly factored into the value or you could get an appraisal from a different company.
Most lender hard money are private individuals or corporations that specialize in a certain geographic area such as Toronto, Canada many also specialize in either residential hard money lending or commercial hard money lending. Lender hard money do not base their decision on your credit score or your present income level like most Canadian banks do. This allows the lender hard money to base the lending decision solely on the value of your property.
Lending guidelines for lender hard money:
Residential home loans 85%
Rental income property 75%
Commercial property 65%
Vacant land 50%
Cottage property 70%
Industrial loans 50%
A hard money lender in Canada has a lot of flexibility regarding the terms or a mortgage. The length of a mortgage could range from 1 to 5 years and the amortization period could range from 15 to 30 years. The interest rate will be a little higher than a conventional mortgage, but the monthly payment could be a principal only payment with all fees and interest loaded onto the back end of the mortgage.
We have lenders in British Columbia (BC), Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nova Scotia, New Brunswick, Newfoundland and PEI.
Getting approved by hard money lender in Canada is an area that our brokers specialize in, the application process can be completed within an hour and you could have the lender hard money within a matter of days. There are no upfront fees and you only pay any fees when you get the money, do not deal with anyone who requests an upfront fee. Please call us for free information regarding a Canadian hard money lender.