Many people in Canada turn away from banks owing to the strict government rules controlling them. People would rather work with private lenders who have more free rein to offer loans to people who could not meet banks’ strict loan approval criteria. Banks’ most important measure of credit worth is a credit score based on an individual’s credit habits. Banks cannot loan to people with a score below 600 points. Private mortgage lenders in Belleville specialize in hard-to-place mortgages that banks cannot service due to strict rules set by the authorities. If you have poor credit or were turned away by the banks, a private lender may be able to help.
Mortgages from Private Lenders in Belleville
Belleville private mortgage lenders loan out money as a registered mortgage secured against real estate. Under the Ontario Mortgage Act, the private lender will sell property in default to recoup if a borrower cannot pay agreed mortgage fees. Private lenders offer as little as $20,000 for one year, but you can choose otherwise. Second mortgages and other high-risk investments attract higher fees than bank loans as private lenders try to reduce the chances of losses. Most private lending companies generate profits from real estate, which explains their attraction to Belleville, which has notably high real estate appreciation rates.
Approval Criteria for Private Lender Mortgages
Private lenders are more interested in a home’s debts and market value when judging mortgage applications. This is a disparity from banks, which insist on a high credit score before considering a loan application. Instead of credit score, private lenders calculate a metric called the Loan-to-Value ratio to measure a worthy investment. The Loan-to-Value ratio or LTV is obtained by dividing the debts on a home by its appraised value. To get a loan from any private lender in Belleville, Ontario, you must present a property with 75% LTV or less.
Private lenders may have a registered mortgage but cannot recoup it before initial lenders are compensated. This is why they are so strict about lending only to properties with sufficient equity, regardless of the credit score.
Reasons for Needing a Private Loan
There are many reasons why people need loans from a private lending company. You will be asked to state your reason during the application process, but that will not be used to judge you. Banks often reject applications owing to unreasonable responses, but private lenders are more lenient. They understand that each customer has unique needs and strive to provide custom loans that are both useful and affordable to repay. Some popular responses include:
- For living expenses after losing a job
- To stop a power of sale or foreclosure
- To pay tuition fees for college or university
- To pay for home repairs or renovations
- To pay off high interest credit card debts
People who didn’t meet the bank’s approval criteria should consult with private lenders who have products exclusively designed for them. Our private lender network can provide mortgages to anyone turned away by the banks.
Fast Financing from Private Lenders in Belleville
Major banks in Belleville must follow a strict, tedious loan approval process set out by the government. Banks’ slow process hinders property sales needing quick funds, posing a significant obstacle. We can approve a mortgage request in 24 hours, and completing the mortgage is 2 to 3 weeks on average. Our network of private mortgage lenders in Belleville also lends to other cities and towns in the province.
Information on Lenders in the Belleville Real Estate Market
Belleville is in the province of Ontario, which is on Canada’s border with the US. It is a major economic hub and many desire to live in Ontario. The real estate market has been in the news lately over high appreciation prices in the last few years.
It is undeniable that Toronto and its surrounding cities hold the record for the highest real estate prices in the entire province of Ontario. These promising prospects for the future are leading more and more people to private real estate lending to generate additional income.
Find a Mortgage Broker or Mortgage Agent Near Me
We have mortgage agents and mortgage brokers near you. You can call our agents directly; they can also drive to your home. Our mortgage agents can explain the various options that you have regarding a mortgage.