The major banks have set very high criteria for people who are applying for a private second mortgage in Canada. Unfortunately, this means that many people who can afford a Canadian private second mortgage are turned down. A borrower can get turned down if their credit rating is not very good or if the loan to value of their property is too high. Private second mortgage lenders in Montreal, Quebec are much more flexible and will consider each loan application based it its merits.
Many Canadian banks will not consider giving a loan or mortgage to people with self employed. Banks require proof of income such as a “Notice of Assessment” from revenue Canada. If you do not have a recent “Notice of Assessment” because you have not filed your taxes it very difficult to get a loan from most Canadian banks. Private second mortgage lenders in Montreal, Quebec do not require a “Notice of Assessment” since they base their lending decision on the equity in your home. This makes dealing with mortgage lenders in Montreal, Quebec a much better option for self employed people.
Most private second mortgage lenders in Montreal, Quebec 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.
Appraisals are done on most transactions that involve a mortgage; appraisers will provide an independent third party option on what the house is presently worth. To determine the present value of a house the appraiser inspects the property to determine the condition of the house. Recent upgrades, new roof, new furnace and a house in a very well maintained condition will mean that the house will receive a high market value when compared to similar homes in the local area. An appraisal compares the value of three other similar homes in the same area which have recently sold. Factors such as size of the property, square footage of the house, number of bedrooms, number of bathrooms and the sale price of the property help determine a fair market value for the house being appraised.
Our brokers have developed one of the largest networks of second mortgage lenders in the country. This network is designed to help people with hard to place mortgages and loans. Call one of our mortgage brokers today to find out how second mortgage lenders in Montreal, Quebec can help your financial situation.
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