The strict control of Banks by the government often discourages people from taking loans. Canadian banks need a credit score of 600 points or more to give a loan and things have recently become tougher. In mid-October 2016, it was mandatory for people to qualify for higher interest rates, making it even harder to qualify for a bank loan. Private mortgage lenders in Brant, have far less government oversight, which makes it possible for them to service mortgages where banks have failed.
A private mortgage lender in Brant can be an individual or company trying to invest in real estate. Brant real estate market is steady, a major attraction for private lenders. Countless private lenders exclusively deal in properties in Brant and its environs. Such lenders typically start their offers at $20,000 for one year but the borrower can negotiate for a longer period. The loan is typically secured to the property so that private lenders can sell it in case the borrower defaults.
Private lenders follow a different set of rules than banks when giving out loans. Their primary interest is equity in the property presented as security and not credit score; the main concern for banks. Private lenders start by calculating the loan to value ratio of a property, which is equivalent to debts divided by the market value of a property. If a house is valued at $1,000,000 and has debts of 750,000 the LTV is 75% a figure that would attract several offers from private mortgage lenders in Brant ON. Many lenders in the city will loan to a maximum 85% LTV on homes in the city and some lend up to 90% LTV on residential property. Private lenders generally avoid homes with too many loans secured against them because this reduces the chances of compensation from a power of sale. According to the Ontario Mortgage Act, lenders should be paid in order from first to last after activation of a power of sale. This means that there might not be enough left for the private mortgage lender in Brant after all others have taken their cut.
Private lenders must know why you need the money but they are more lenient than banks. Following a strict code means that banks will reject a loan application for the explanations given but private lenders generally accept anything reasonable. Either most of our clients have low credit score or lack income as this is our area of specialisation. We also help our clients repair bad credit and hopefully get a low-interest bank loan in future.
Banks and other traditional lenders have to follow a long mortgage approval process. This is nearly impossible to speed up even with the right documents. Real estate deals easily collapse owing to funding delays and private lenders seem to recognise this. They can provide funding much faster if the client has all necessary documents in place. If your home purchase is almost collapsing due to time issues, you can approach us to connect you with one of our Brant Lenders who are not concerned about your credit or job history.
We boast a large network of lenders who offer loans in Brant and other areas in Ontario. Our relationship with reputable real estate firms and lawyers makes it easy to arrange e emergency funding and save time-sensitive deals from collapsing.
Like other cities in Ontario, Brant recently experienced a notable increase in real estate sales and prices. This is great for private lenders who are always looking for suitable places to invest. Unlike some Canadian cities such as Vancouver, Brant housing is deemed affordable as the uptake in prices is in tandem with the income of most residents. The real estate market of Brant is highly regarded for its stability and with its growing economy it is no doubt that; more people will turn to private real estate lending. This region also has one of the highest quality of life ratings of all cities in the Americas.