Etobicoke is in Toronto, Ontario, Canada where the housing market is booming. Toronto as a whole has a variety of brokers that offer private lender mortgages. We have many private lenders in our network who are ready to provide money in Etobicoke and the entirety of Toronto. Our private mortgage lenders in Etobicoke accept even those with bad credit and the self-employed who might not get bank loans. Call us today, and we can discuss your situation to see the financial options available for your needs.
Etobicoke Private Lender Mortgages
A private lender mortgage in Etobicoke is a loan secured against property and one that isn’t provided by a large financial institution. Private lenders are simply individuals or companies that have decided to invest their personal money in the real estate sector. Most private lenders in Etobicoke prefer investing in properties owing to the high increase in price and the ease of selling a property through power of sale if a client is unable to pay their fees. The lenders claim investment in chronological order from initial to final lender of the private mortgage.
Private lenders provide mortgage amounts from $20,000 to $700,000 or more. Generally, the interest rates range from 7%-15% considering the value of existing mortgages, a property’s condition, income and credit score among other factors. Private lenders are not covered by government insurance for mortgages, which is why many of them charge a fee in advance to cover the risk associated with private loans. Other fees that are usually charged are for paying mortgage brokers, real estate lawyers and home appraisers.
Mortgage Approval Requirements for Private Lender Mortgages
There are certain conditions that have to be met before private lenders can offer mortgages. The most important condition for these lenders is loan to value of a property. Most private mortgages are for homes occupied by owners. Private lenders need LTV below 85% for owner occupied homes and below 65% for commercial investments. Private lenders in Etobicoke need 75% loan to value ratio for rental properties. Rental income properties must have a strong cash flow to convince the lender that you can support the mortgage payments.
Private lenders in Etobicoke also look at the client’s credit rating but this will not cause you to miss the loan. A poor credit rating can lead to high-interest rates for mortgages but is possible to get low rates if you have a high credit score. For banks, a low credit score automatically leads to the dismissal of loan applications. Lending to poor credit is impossible for banks that follow set rules to mitigate risk.
Reasons to Get a Private Lender Mortgage
Private lenders provide money for a variety of personal and business reasons. Lenders, in this case, will want to know why you need the money and whether you can service the mortgage. Some of the common reasons why people opt to get a private lender mortgage include:
- Disability or sickness that causes inability to work
- Self-employment or retirement which makes it impossible to get loans from banks
- To repair or repair a property
- Recent job lay off
- Need to have money urgently
- To pay off high-interest debts
Private lenders are the popular option for those who do not qualify for bank loans. These are typically more expensive than bank loans and are recommended as short-term solutions. Our company specialises in the provision of these short term solutions and also help clients qualify for lower interest rates from banks after they have finished the private mortgage.
Private Mortgage Lender Information in Etobicoke
There have been rapid gains in Etobicoke created by a high demand by both investors and consumers in the industry. The real estate market of Toronto as a whole is the fastest growing in Canada. There was more than 20% of the industry in house prices and sales between 2015 and 2016.
City regulations promote the building of condominiums, which is why most of the new homes in this area are condo units. Etobicoke has a high unmet demand for detached and semi-detached homes in the city. Detached homes in Toronto were selling for an average $1.2 million dollars as at Sep 7, 2016.