Private lenders can provide mortgages when many Canadian financial institutions will not. Most financial institutions avoid any risk associated with mortgages; lower risk means that financial institutions reject many applications. People with private mortgage money take a different approach to making a loans, they usually only lend in a certain geographic area and want to meet the client before an application is approved. By understanding the borrower’s personal and financial situation, private lenders can reduce the risk and provide the required funds at a competitive interest rate. If you have been turned down by any of the Canadian financial institutions, private lenders may be the answer to your financial concerns.
Private lenders can provide first mortgages, second mortgages and third mortgages for homes and properties across Canada. First mortgages have the lowest interest rate since they are the most secure, first mortgages have first claim to any money when the house is sold. Second mortgages and third mortgages have a higher risk and therefore they have a higher interest rate. Private lenders also provide funds for refinancing of your existing private money mortgage even if you have a poor credit rating. People with private mortgage money can also replace an existing first and second mortgages with one new first mortgage, the new combined first private money mortgage can result in lower overall interest payments.
Most people are not aware of their credit score and do not pay attention to their credit score until they are turned down for a loan. Private lenders consider your credit score to be one component of your entire financial history. Most private lenders consider the loan to value (LTV) ratio to be the most important factor in determining whether you qualify for a loan or private money mortgage. If you would like to know your personal credit score go to the Equifax website and get a copy of your personal credit report, your credit score is available at no charge. Look at your report to confirm that there are no errors and to confirm that it has been properly updated.
Private lenders like to inspect the homes or properties that they are investing in and they also like to talk to the home owner so that they can develop a relationship with the borrower. To ensure that your house gets the highest possible appraisal value you should look at your property to determine how to improve its appearance. Thoroughly clean the inside and outside of the house, painting can improve the appearance of your house and painting can be done fast and cheaply. People with private mortgage money are people and the first impression of your home could be a major factor in whether you get the loan you require.
When you are looking for a private lender the most important factor is to find a lender that meets your requirements. Private lenders can provide quick access money for higher loan-to-value ratios private money mortgages and loans. As a consumer you should try to get the best advice, interest rates, and options possible, to do this you should consult with a private money mortgage broker regarding private lenders.