If you have been turned down by one of the major Canadian banks because of poor credit or you are self employed then you will be happy to know that international private lenders can help get the money you need. International private lenders provide an alternative source of funds for people who do not meet the stringent bank requirements. International private lenders can provide funds for second mortgages, home renovation and debt consolidation loans. Most banks will not even consider funding these types of loads due to the higher risks associated with them. In contrast, international private lenders provide funds specifically for these types of projects.
Many of our clients are self-employed and have been so for many years, unfortunately most Canadian banks do not look favorably on self employed income. In contrast international private lenders will take into account your self employed income as part of your entire financial situation; they will not reject your loan application just because you are self employed. We recommend that you provide any past notice of assessment to provide what your income has been for the last three years, this will satisfy most international private lenders.
International private lenders primary criteria for making a lending decision are based upon the LTV ratio in your home. You can determine what your property’s LTV ratio is by dividing the amount that you owe on your home by the value of your home. An example would be a house with a value of $300,000.00 and an outstanding first mortgage of $200,000.00, the LTV in this case is 66%. A lower LTV ratio means that a borrower can get a favourable interest rate and will be able to borrow a larger amount of money. Most international private lenders will not exceed a LTV of 85% on any property; in certain cases the borrower may even be able to get a mortgage with a LTV of up to 90%.
Most private equity lenders will require an appraisal of a property before they commit to providing any money for a mortgage. Appraisals are done by trained professionals who provide an unbiased independent opinion of the present market value of a home. The appraisal will take into account many different factors in a house such as the roof, furnace, windows and overall condition of the house. Any defects such as broken drywall or a leaky roof will be noted in the appraisal and reduce the market value of the appraisal. Upgrades such as a new kitchen or bathroom will also be noted and will increase the market value of the appraisal.
Our brokers strive to provide you with the best service and advice possible. We will be totally honest with you and tell you the pros and cons of all the mortgage options that are available to you. Private equity lenders are an excellent source of funding when other financial institutions have turned you down. Call our brokers for more information on private equity lenders.