Bad Credit Mortgage Brokers in Woodstock

Several things make Woodstock a favorable place to call home. With a beautiful setting on the Thames River and many outdoor activities to offer its residents, the city remains a desirable place to live. As of the latest 2016 Canadian census, Woodstock has approximately 40,902 residents and is very accessible to larger urban centers, including Toronto (128 km away) and London (only 43 km away).

Recent real estate figures help to confirm the appeal of Woodstock. According to the May Housing Report for the region, the average house price has risen to a high of  $450,000 which represents a 28.4% increase in the first quarter of 2021. The year-over-year increase in both housing sales in the Woodstock area and the average house price has been in the double digits as well, despite the potential financial implications of a drawn-out pandemic.

Mortgage Brokers in Woodstock for People with Bad Credit

Various factors over the last 16 months have significantly boosted the Ontario housing market, despite repeated stay-at-home orders and lockdowns.

With historically low mortgage rates on both variable and fixed mortgages, a low inventory of available houses on the market, and a race to lock in mortgages before the Government announced an increase in mortgage stress tests, the housing market has been in overdrive.

Many may be seeking secured mortgage financing. While there are plenty of lending opportunities available in Ontario and the Woodstock region, it may be more difficult to obtain a secured mortgage loan if you have damaged credit and a high debt ratio (multiple monthly debt payments to cover).

Are Options Open for Those Who Suffer from Poor Credit and May Have Multiple Outstanding Debts?

Throughout Ontario, numerous secured mortgage loan options are available for those with damaged credit seeking primary or second mortgages offered by Ontario-based private lenders. Some of the private lending options include:

• Home equity loans
• Home Equity Lines of Credit (HELOC)
• Home renovation loans
• Bridge financing
• Debt consolidation loans
• Renegotiated terms on a principal (1st mortgage)

How will a private lender be able to help? When contemplating any of these loan options, a private lender will be assessing several key variables. Private lenders will be looking primarily at the appraised value of your home. A private lender will use your home as the principal collateral for the mortgage loan. Those needing a principal mortgage must provide a sufficient down payment to offset poor credit or high debt ratios.

Criteria Private Lender Assess

Other criteria that private lenders will be assessing include:

• The overall degree of equity existing in your property
• Additional assets that can be demonstrated to determine the mortgage amount
• Overall debt ratio (compared to overall household income)
• All sources of income, including self-employed, freelance, and contract-based income

When negotiating a private mortgage loan, a private lender typically assigns an interest rate between 7% and 12%, depending on the loan type and borrower’s financial capabilities. Fees associated with most private loans tend to range between 3% to 6% of the loan’s total cost.

As a general rule, mortgage brokers in Woodstock typically do not lend more than 75% of your property’s current value (75% Loan-To-Value or LTV). A private lender will also prefer to see 25% existing equity in your home.

A loan with a higher than 75% LTV is considered high-risk for a private lender. Their role is to mitigate risk while offering short-term financing to clients rejected by banks due to credit issues or debts.

Steps to Take When Preparing for Private Mortgage Financing

The age-old adage that opportunity is simply preparation meeting the right timing. The same principle applies to the opportunity to take out private mortgage financing. The more you undertake to research the private lending options and be very secure in what you are hoping to achieve financially, the better the private lending process will proceed. Several key steps are highly recommended before meeting with a private lender to go over lending options:

• Research good pre-approval rates
• Gather all paperwork necessary, including proof of income, investment statements, and proof of assets
• Obtain a recent appraisal of your property if you are looking for a second mortgage loan option
• Be clear on your mortgage loan objectives (are you looking for funds to renovate, consolidate debts or maybe buy an additional property)
• Know your credit score and try to increase your credit score before seeking pre-approval
• Be in contact with mortgage brokers in Woodstock for direction

Private lenders or mortgage brokers in Woodstock can discuss various financing options tailored to your unique financial circumstances. Private loans have some distinct advantages for a Woodstock homeowner/borrower:

• Private loans are negotiated quickly, and the process is straightforward. A private lender can provide secured mortgage loans faster than banks or credit unions for immediate expenses and financial goals. The loan process is straightforward and will be finalized promptly.
• Private mortgage financing is typically short-term. Structured for durations usually between 1 to 3 years. This time will provide the opportunity to restore credit and prove a reliable payment history. By paying the mortgage payments on time and in full for the course of the loan, your credit score will improve.

Mortgage Broker Store Will Help Direct You Towards Finding Mortgage Brokers in Woodstock

If you are a Woodstock homeowner or a borrower who would like to obtain mortgage financing, don’t let credit issues stand in your way of purchasing a home or taking out hard-earned equity from your property to pay for needed expenses.

Mortgage Broker Store has access to a broad network of private lenders in the Woodstock area. A private lender can discuss options with you directly to help achieve your mortgage goals effectively.

We can assess your financial situation and recommend the best private loan options and lenders for your goals.

Mortgage Broker Store can help connect an Ontario homeowner to an appropriate private lender to meet home equity loan needs. Continually strive to find the best match when looking at your particular mortgage and financing goals. We work with Ontario private lenders, guiding you through crucial decisions in the lending process. We will steer you in the right direction in your mortgage search. Call us at 416-499-2122 to take the next step!