Canadian banks have strict mortgage approval requirements that lead to the rejection of several applications. Private lenders in Orillia are the only solution for individuals who fall below the par for banks. Banks already demand a high credit score of 600 points and the ruling in October last year requires people to qualify for higher interest rates and this means that even more individuals will fail to meet the requirements for a bank mortgage. Private mortgage lenders in Orillia enjoy more freedom from government control than banks, so they can afford to fund mortgages that were unacceptable by banks with their strict process.
Orillia Private Lenders
A private lender in Orillia can be an institution or individual looking to invest in real estate. Orillia’s real estate market is famed for its stable and steady growth which makes it attractive to private lenders. There are several private lenders specialising in properties located in Orillia and surrounding cities. Lenders typically give $20,000 or more and usually for one year. Most private lenders in Orillia prefer to secure a loan to the property to give them the power of sale if the borrower is unable to repay fees as agreed.
The requirements for a private lender mortgage are much different from the banks’ process. While credit score is of utmost importance to banks, private lenders concentrate on the market value of a property and loans secured against it. They value a metric known as loan to value ratio, which guides them to the most creditworthy properties. Loan to value ratio is obtained by dividing the value of debts n a home by its appraised mare price. If home worth $1,000,000 has 650,000 in debts then it has 65% LTV that will definitely get you a private lender loan. Most of the private mortgage lenders in Orillia will only loan to 85% LTV and 90% LTV on rare occasions.
Reasons for Getting a Private Mortgage
When you request for a private mortgage from a lender in Orillia, they will ask you to state your reason for needing the financing. They understand that you have unique needs, which require a specially tailored loan to address fully. Common reasons why people need financing include:
- To upgrade or renovate property
- To pay for emergency medical bills
- For living expenses after a termination of work
- To invest in college or university education
Most of those applying for private mortgages have already been disqualified from getting a bank loan. They have either poor credit or low income but fortunately, they can turn to private lenders who specialise in arranging mortgages for such circumstances. In addition to connecting our clients with ideal private loans, we also help them repair credit in the hopes of qualifying for attractive bank loans in future.
Fast Mortgage Financing
Banks and private lenders like credit unions have to go through a long mortgage approval process. Often times it is impossible to speed things up even with the correct documents in place. This can be problematic for time sensitive deals, which could collapse if the money isn’t provided fast enough. We are able to provide rapid funding to make sure that deals go through so if you are strained for time and cash, we will be happy to link you up with one of our lenders in Orillia. The pace at which a mortgage is processed could mean the difference between keeping your home or losing it to a power of sale.
We boast a large database of private lenders; many of who loan to Orillia and other areas of Ontario. Our experience with competent lawyers and popular real estate firms help us negotiate private deals such faster than the banks.
Information on Private Mortgage Lenders in Orillia
Ontario cities like Orillia experience double-digit increase in residential real estate prices and sales. Investors seeking a stable market are attracted to Orillia, which unlike Vancouver and other Canadian cities boasts affordable housing. This is because the increase in real estate prices is matched with more income for residents. Orillia has the more stable real estate market in Canada and it helps that it is a desirable city to live.