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Private Mortgage Lenders in Peterborough

Canadian banks are under strict regulations imposed on them by the government. This means that they cannot lend to everyone in need of a loan and those who are rejected must seek alternatives provided by private mortgage lenders in Peterborough. Private lenders do not have to follow the same rules and can service hard to place mortgages that were turned down by banks. Banks will reject anyone with a low credit score but private entities might be able to help.

Mortgages from Private Lenders in Peterborough

Private mortgage lenders in Peterborough loan out their money in form of registered mortgages with a property as security. A registered mortgage is the only way a private seller can sell off the property if a borrower is unable to repay as agreed. Private lenders can offer as little as $20,000 which should be cleared in one year unless you request otherwise. People who make little monthly can choose an extended timeline so that they can comfortably repay their loan. Riskier investments like second mortgages attract higher fees compared to bank loans. The fees are required upfront to pay professionals involved in arranging your mortgage. Private lenders are invested in real estate and this is why they are drawn to the Peterborough market with its skyrocketing prices.

Approval Criteria for Private Lender Mortgages

Private lenders need to see the market price of your house and evaluate the total debts against it. This helps them calculate loan to value ratio, the metric that guides their final lending decision. Banks rely on o credit score to assess borrowers but that doesn’t seem to bother private mortgage lenders in Peterborough who can provide loans to people with poor credit. Loan to value (LTV) ratio is obtained by dividing the total of loans on a property by the most recent price estimate. Most private lenders will only loan to properties that do not exceed the 85% LTV threshold. Private lenders may not be concerned with credit score but they are also sensitive to risk and will not loan to the property with so many loans.

Reasons for Needing a Private Mortgage

During the mortgage application process, you will be required to state why you need the money. Do not worry because this information is only needed to keep records, unlike banks that may judge applications on the reason given. Private lenders are very lenient and accept any reasonable explanation. Some of the most popular are:

  • For living expenses after being laid off work
  • To pay tuition fees for university
  • To pay off high-interest credit card debts
  • To pay for home renovations and repairs
  • To stop a foreclosure or power of sale

People who did not qualify for bank loans are the primary target for private lenders. Our network offers private loans in Peterborough and other parts of Ontario. Private lenders are very flexible, that they can provide tailored solutions to the unique needs of people in Peterborough.

Rapid Financing from Private Lenders

Major Canadian banks have to follow a long, tedious mortgage approval process. It is impossible to have banks speed up their process and this is unfortunate because some people are usually in urgent need for funds. Private lenders are the alternative as they are able to offer loans much faster than banks. It is possible to have a private lender process your funds in only a day. Our network of private mortgage lenders in Peterborough also provides their services to other cities and towns across Ontario.

Information on Lenders in the Peterborough Real Estate Market

Peterborough is between Ottawa and Toronto, both world famous cities in the real estate scene. The city has seen an increase in private lenders of real estate seeking to earn extra. Peterborough is an important economic city in Canada with many companies operating there. The real estate industry is also thriving as people are in constant search for alternative funding solutions that they would not ordinarily get from banks. Ontario, the province where Peterborough lies is a household name in the real estate markets; owing to incessant growth in returns on property. The province is both an economic hub and one of the favourite places to stay in Canada.

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