Private mortgage lenders in Montreal, Quebec fill a gap within the Canadian financial industry. The major Canadian banks and financial institutions will only provide loans for low risk situations. This means that a large segment of the population will not be able to get a mortgage because they do not meet all the criteria of the banks. If your credit rating is not very good or if you are self employed the chances of getting a loan from a bank is low. Private mortgage lenders in Quebec are much more flexible and realize that the standards for getting a loan should change for every individual situation.
Most lenders with private investor loans focus on the value of the property which is used as security for the mortgage. As long as there is enough equity in your home most lenders with private investor loans will provide you with the funds you need.
The loan to value ratio (LTV) is one of the main factors that lenders with private investor loans look at when determining if you can qualify for a loan. To find the LTV on your property you divide the total of any outstanding mortgages on the property by the present market value of your property. An example of is a home in Montreal with a market value of $300,000.00 and total mortgages of $200,000.00, the LTV in this example is 66%. High LTV ratios above 75% will result in a more difficult to arrange and more expensive mortgage. Most private lenders in Montreal will not exceed an LTV of 85% and will normally fund mortgages that have an LTV below 80%.
Most private mortgage lenders in Montreal will require an appraisal of a property before they commit to providing any money for a mortgage. Appraisals are done by trained professionals who provide an unbiased independent opinion of the present market value of a home. The appraisal will take into account many different factors in a house such as the roof, furnace, windows and overall condition of the house. Any defects such as broken drywall or a leaky roof will be noted in the appraisal and reduce the houses value. Upgrades such as a new kitchen or bathroom will also be noted and will increase the houses value of the appraisal.
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Our brokers have developed one of the largest networks of private lenders in Montreal in the country. This network is designed to help people with mortgages that are difficult to fund. Call one of our mortgage brokers today to find out how a private mortgage lenders in Montreal can help your financial situation.