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Private Mortgage Lenders in North York

North York is one of the larger neighbourhoods in Toronto, Ontario. The housing market is booming in these parts and the city is the place where it is highly likely to get a private lender mortgage. We have many private mortgage lenders in North York that will readily provide money in North York and the greater Toronto area. Our lenders can offer loans to people who are self-employed or have bad credit. Banks do not loan to this category, as they are deemed too risky. For a bank loan, a client only qualifies with a credit score that is above 600 points. If you call us, we will discuss your situation and see the best options for your needs, no matter your employment or credit history.

North York Private Lender Mortgages

A private lender mortgage is a loan with real estate as security and not provided by the traditional lenders like banks and credit unions. Private lenders are usually individuals or companies who have decided to invest personal assets in the real estate sector. Lenders in this sector are attracted to properties in the larger Toronto area considering the high growth in prices as the ability to sell real estate via power of sale if a borrower is unable to pay their fees. Lenders can only claim their investment in chronological order after the execution of a power of sale.

Private lenders can provide mortgage amounts from $20,000to $700,000 or more. Interest rate typically ranges from 7%-15%depending on the value of existing mortgages, credit score, income and the property’s condition among other factors. Because private lenders do not qualify for government provided mortgage insurance, borrowers are required to pay an initial lender fee to compensate risk associated with private mortgages. Fees are typically for mortgage brokers, real estate lawyers, and appraisers among other staff needed to process the mortgage.

Approval Requirements for Private Lender Mortgage

Private lenders are particular about who they loan with a set of conditions that each client must meet to qualify for a loan. Private mortgages are offered to owner-occupied homes for which the lenders want a loan to value ratio of 85% or lower. Most commercial properties require one to have a credit score of 65% or more. The LTV required for residential income properties is 75% and there must be great cash flow to support mortgage payments.

Private lenders in North York will also consider the credit rating but you will not be turned down for a loan just because of a poor credit rating. High credit rating means low-interest mortgage but you will pay high fees and interest rates for a mortgage with poor credit scores. This is a measure taken by private lenders to protect themselves from the risk associated with lending to those with poor credit.

Reasons to Get a Private Lender Mortgage

Private lenders can offer money for different reasons, which could be personal, or for business. The lender usually wants to know your reasons for needing the money and if you are capable of servicing the mortgage. People commonly need the private lender mortgages because:

  • The have been recently laid off from work
  • They suffer sickness or disability that makes it impossible to work
  • To renovate or repair a property
  • To pay emergency bills
  • Paying off other high-interest debts

Private lenders are a popular choice for customers who didn’t qualify at the banks. Loans from private lenders cost more than bank loans and should, therefore, be taken as a short term solution. We focus on providing short term loan solutions offered by private lenders and can help you get lower interest rates from banks as soon as private mortgage payments are finished.

Information on North York Private Mortgage Lenders

In recent years, Toronto has experienced rapid gains in the mortgage industry driven by growing demand by investors and clients alike. The real estate market of North York and other areas is one of the fastest growing in Canada where sales and house prices upped by 20% from 2015-2016.

Due to city regulations promoting the building of condominiums, most homes coming up in North Bay are condo units. Detached and semi-detached homes are in high demand with detached homes selling for $1.2 million on average as on Sept 7, 2016.

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