Private Commercial Lenders

Private commercial lenders fill a void created by the major banks that will not provide loans to people who have a poor credit rating, are self employed or are on a pension. Private commercial lenders can provide loans for second and third mortgages or even home renovation loans when a bank will not. Private commercial lenders are a viable alternative to traditional banks; they have flexible criteria that can fit many different situations.

Second and third mortgages in most cases exceed the 75% LTV ratio and even more importantly they are not first in terms of payment priority. This factor becomes very important if the property is put up for “power of sale” or “foreclosure” since the first mortgage holder may incur fees which can greatly reduce the remaining equity and therefore reduce the chances of repayment for the second and third mortgage holders.

Private commercial lenders can provide loans for first, second and even third mortgages. Most Canadians will need a mortgage or to refinance a mortgage at some point in their life. Private commercial lenders can be very competitive on interest rates and any fees associate with a mortgage and a mortgage broker can quickly give you an idea of what the present rates are. First mortgages will usually have the lowest interest rate, second mortgages will usually have a higher interest rate than first mortgages due to the higher level of risk on the mortgage and third mortgages will have the highest interest rate. To determine what type of mortgage best fits your needs we recommend that you consult with a mortgage broker.

Many banks will reject you loan application if you have a poor or bad credit rating even if you have a good job  and lots of equity in your home. Banks want to give loans to people who can prove that they will pay back the loan on time with no late or missed payments. Private commercial lenders are much more flexible in their lending criteria; they understand that there can be many reasons for a poor credit rating. The amount of equity in your home and your ability to make the monthly payments is much more important than a poor credit rating to a private lender.

Commercial Private Lenders

Many people are not aware of their credit rating until they are turned down for a loan. Private commercial lenders look at your credit rating as one component of your entire financial picture. Many commercial private lenders consider the loan to value ratio to be the most important factor in determine whether you qualify for a mortgage. If you would like to know your credit rating you can go to the Equifax website and get a free copy of your personal credit report. Take a look at your report to see if there are any errors or to confirm that it has been properly updated, if there are any errors inform Equifax right away.

Commercial private lenders like to inspect the properties that they are providing mortgages for and they also like to talk to the property owners so that they can develop a personal relationship with the borrower. To ensure that your property gets the highest market value you should take a critical look at your property to determine how you can improve is appearance. Some suggestions are to thoroughly clean the inside and outside of the house. Painting can greatly improve the inside appearance and this is a relatively cheap job to do. Remember commercial private lenders are people and will base part of their lending decision on their first impression of your home.

Trying to find the mortgage needed for your mortgage can be a very stressful experience, without knowing exactly how private commercial lenders operate a borrower will have little chance of getting funding. When you call our mortgage team we can tell you within minutes if your loan will be approved and when you can get the money from a private lender.