Canadian banks are subject to several government regulations which unfortunately turn people away from banks. They prefer the less regulated private lenders who specialise in the placement of mortgages that were rejected by banks. If you do not have a credit score of 600 points or more, banks cannot service your mortgage so and only private mortgage lenders in Aurora may be of help. As long as there is enough equity in a property, the private mortgage lender in Aurora is not deterred by a borrower’s credit score.
Private mortgage lenders in Aurora will loan out money in form of a registered mortgage secured against real estate. This is the preference because the Ontario Mortgage Act allows holders of registered mortgages to sell off the property if agreed fees are not paid. The money is typically given for one year and it can be as little as $20,000. Some people prefer longer payment terms which enable them to pay smaller, more affordable monthly instalments. Riskier loans (to bad credit or a second mortgage) attract heftier interest rates and fees compared to bank loans. This is a mitigation strategy guided by the fact that even a power of sale may not help if there were other lenders involved. According to the Ontario Mortgage Act, lenders must be paid in chronological order from first to last.
Private lenders are keener on the price of a house and the total debts on it when deciding whether to approve or throw out a mortgage application. For banks, credit score is the most important factor to consider when judging mortgage applications. Private lenders instead calculate ethe loan to value of a property to know whether it is deserving of credit. Loan to value ratio of a property is calculated by dividing the debts by its current selling price. If your home is worth $1,000,000 and has debts of $800,000, the loan to value ratio will be 80%. Most private mortgage lenders in Aurora will loan to a maximum 85% LTV on any residential property. They may not be worried about credit score but generally avoid loaning to homes that already have a heavy debt burden.
While applying for a loan from private lenders, they will ask why you need the money but only for record keeping. They are very lenient at this stage as they understand that their clients have unique needs. Here are some of the popular responses when people are asked why they need this money from a , private lender:
People who cannot get a low-interest bank loan are the kind of client that private lenders seek. Our private lender network is able to offer mortgages to individuals that have been turned down by banks. The money from a private lender mortgage can be used to meet different financial obligations.
The main banks servicing Ontario province must follow a mortgage approval procedure set out by the government. It is a rigorous task that takes so much time and that is quite a hassle when people are in need of urgent cash. Private lenders can lend money much faster than the banks. If required, a private lender can provide funding n only 24hours. Our network of private mortgage lenders also offers services to other cities and towns in Ontario.
This is a town in the Golden Horseshoe of southern Ontario. This is a much-debated town in the news owing to an attractive real estate industry. Toronto and other cities have recently experienced double-digit growth leading many in towns like Aurora to turn to private real estate lending as a means of generating spare income. Ontario is famous as Canada’s economic hub and in addition, the most preferred place of residence.