Canadian banks are regulated by the government and the strict rules imposed on them, cause many people to turn to private lenders. They are not under the same rules as banks and therefore service mortgages that wouldn’t be approved by banks in St. Catharines. For a chance to get any bank mortgage you need a credit score of 600 points or higher. So many people fall below this mark for different reasons, some of which are beyond their control. If you cannot qualify for regular loans offered by banks, private mortgage lenders in St. Catharines might be able to help. A private mortgage is a great opportunity for you to access the equity in your house for personal gain. Our private lenders are also able to offer mortgages in other cities across Ontario.
Private lenders servicing St. Catharines prefer loaning money in form of registered mortgages. This way, they can sell off a property if the client fails to pay as agreed. This is provided for in the Ontario Mortgage Act and lenders may offer as little as $20,000. This is to be repaid within a year but a client can request otherwise. For riskier loans like those for clients with no income or seeking second mortgages, the fees are usually higher than those for bank loans are. Such loans are considered too risky because there is no guarantee that the borrower will finish paying. It is difficult to recoup from a power of sale in such a situation as the Ontario Mortgage Act requires that the lender who came first recoup first followed by the second and third lender if any. People are particularly drawn to the real estate market in St. Catharines, which like the rest of Ontario has seen a high spike in property prices.
Banks mainly rely on credit score when approving loans but that is no concern for most private lenders. The concentrate on a property’s value and total debts as it helps them determine its LTV. Loan to value is an important metric obtained by dividing the total of debts by the value of property. If for example, a home has a value of $1,000,000 and debts of $800,000 the LTV is 80%. This is acceptable as many private lenders are ready to loan properties with 85% LTV or less.
The private lender must know why you need the money but they are very lenient than banks. Private lenders accept every reasonable explanation given but the most popular are:
People in St. Catharines who were turned away by banks when they needed loans can turn to the lenient private lenders. Private lenders do not care as much for the credit score as banks because they see value in pieces of real estate. Our network of private mortgage lenders in St. Catharines is ready to offer loans to the individuals who couldn’t meet the banks’ criteria for loans approval. The professional loan officers will listen to each client’s special needs in an attempt to get them the most suitable mortgage in St. Catharines.
Banks follow a long loan approval process for mortgages, which may be a problem for those in urgent need for funds. Private lenders are not restricted by the same rule and can, therefore, approve loans much faster. It can take merely a day to get funding and our network of lenders in St. Catharines serve other cities and towns in Ontario.
The St. Catharines real estate market is vibrant thanks to its location in Ontario. This province is the subject of global debate having witnessed some of the highest real estate rates in the industry. Many people in the city are becoming private mortgage lenders as a way of generating extra income. Ontario is also esteemed as one of the best places to live in Canada.