Many people fail to meet the strict mortgage requirements that banks have, and are turned down for a bank mortgage. A popular option for people turned down by banks is to find a private lender for Markham. Private lenders have requirements that are less strict than the banks. Government intervention in the housing market also makes it more difficult for people to get bank mortgages. Due to a new federal ruling, as of Oct 17, 2016 people must be able to qualify for higher interest rates. For people who just barely met the old mortgage requirements, they will now be turned down for a mortgage. Private mortgage lenders in Markham are not influenced by this new ruling and will continue to provide financing when banks cannot.
Private lenders in Markham are typically individuals who are looking to invest their money to gain reasonable returns. Demand for Markham real estate is quite high, and this high demand makes it attractive to investors. Many private lenders seek to invest close to Toronto, and Markham shares a border with Toronto. Markham’s private lenders can provide mortgages or $20,000 or greater and usually for single year terms. The lenders will arrange the loan as a mortgage, meaning that the debt is secured to the property. As with all secured real estate secured debts the property may be sold if the barrower fails to pay their fees. Private lenders typically have different lending criteria than banks do. Private lenders usually are not concerned with credit scores, but instead they care about the value of the property and existing secured debts. Private lenders use a metric called Loan to Value Ratio (LTV). To calculate a home’s LTV, you take the amount of existing secured debt and divide it by the market value of the property. A property’s LTC is equal to the value of existing debts against the home divided by the market value of the home. To give an example, a property which is valued at $100,000 with a $75,000 mortgage would have an LTV of 75%. Most Markham private lenders are able to go up to 85% LTV or 90% LTV in special circumstances.
In order to get a mortgage from a private lender you must provide a reason why the money is needed. There are many unique reasons for needing a private lender but some common examples include:
Many people seeking private lenders have already been to banks and have been turned away. Markham private lenders specialize in providing financing for people with bad credit or low incomes. We can also develop a plan to ensure that the client’s credit score will improve in the future.
Most large lending institutions must perform lengthy approval processes. Usually these institutions will not respond to requests to speed up their process. This can cause issues in deals that are time sensitive. Our lenders are able to provide financing in time sensitive situations. For deals that are at risk of collapsing if financing isn’t provided quickly, a private lender is your best bet. Our large network of Ontario private lenders can provide loans in Markham and the rest of the GTA. Our brokerage has close relationships with all of Markham’s lending firms and their lawyers. We can provide fast financing for deals with tight time constraints.
Markham is experiening high increases in real estate prices and high demand. The number of new listings is decreasing, likely due to a lack of housing inventory. Markham is on the border or Toronto, and most private lenders for Markham also lend in other cities close to Toronto. Markham is a popular location for people who are looking to commute to Toronto for work.