Private Mortgage Lenders in Ontario
Private mortgage lenders in Ontario perform a very vital function in our society, they fill a void that major banks and financial institutions do not want to fill. Private lender will consider providing loans to people that have bad credit, even if a banks has turned the borrower down. Private mortgage lenders in Ontario will provide higher ratio mortgages when no other lender will. Private mortgage lenders in Ontario are the main source of financing for second and third mortgages since major Canadian banks will not provide these. Private mortgage lenders in Ontario will accept a higher level of risk and they also charge a higher interest rate, but they can get you the money you need to tide you over until you can arrange lower cost financing.
Many of our clients are self-employed and have been so for many years, unfortunately most Canadian banks do not look favourably on self employed income. In contrast private mortgage lenders in Ontario will take into account your self employed income as part of your entire financial situation; they will not reject your loan application just because you are self employed. We recommend that you provide any past notice of assessment from revenue Canada to provide what your income has been for the last three years, this will satisfy most private mortgage lenders in Ontario.
Most private mortgage companies base their lending decision on the loan to value ratio on your home, therefore it is important to understand how to determine your loan to value (LTV) ratio. To find your LTV you divide the total amount owing on your property by the value of the property, for example if you owe $300,000.00 on your home and the value of the property is $400,000.00 then your LTV is 75%. It is important to get a clear idea of what your property is worth at the present time, property values can fluctuate and increase or decrease your LTV ratio, if you are not sure of your properties present value ask a local real estate what they think the value of your property is.
Private Mortgage Companies
For most new mortgages and refinancing of existing mortgages the private lender will require an appraisal of the property. Appraisals can be done in a number of ways the first and most common appraisal is done by a licensed professional; appraisers have been trained on how to inspect each property and how to determine the present market value of the property. The appraisal will include an inspection of the property; the appraiser will look at any buildings on the property and all the surrounding property. If there is a house on the property, pictures will be taken of all rooms within the house, any defects or problems areas such as a leaky roof will be noted in the appraisal.
Our private mortgage companies and mortgage brokers are here to help you get the money required for your mortgage. Our brokers try to make the mortgage process as straight forward and transparent as possible. All our clients are informed of all the possible options before the y choose the mortgage that is right for their situation. For a free consultation call one of our brokers right now to find out how a private lender can help you.