Within a manageable commuting distance into central Toronto, coupled with natural beauty, the region of Bolton can offer many things on a homeowners list of must-haves. Located on the beautiful Humber River, Bolton offers a relaxed lifestyle for its residents.
Offering outdoor activities, beautiful homes, and considerable local amenities, Bolton continues to attract potential homeowners. The population as of the 2017 census is 26, 378 and continues to draw potential buyers as the lifestyle remains an attractive prospect when choosing an area to call home.
Jaw-dropping numbers have perplexed Ontario real estate professionals since the onset of the global pandemic just over a year and a half ago. Properties have routinely sold for over the asking price for the better part of the last year.
Multiple bids on the limited inventory on the market and substantial property appreciation have also become the norm across the Bolton region and throughout the Province. The pandemic effect can only be characterized as very positive for the Ontario housing sector.
According to the Monthly July 2021 Housing Report for Bolton, the average price of a single detached residence has skyrocketed to $ 1, 780,784. This represents a 4.6% monthly increase from June 2021, a 77.8% 2021 quarterly increase, and a 107.1% year-over increase from July 2020.
Private Mortgage Lending Options for Bolton Homeowners with Poor Credit
As Bolton homeowners continue to see considerable appreciation in their properties, some may be weighing the options when it comes to secondary mortgage financing or refinancing their homes.
Reasons for mortgage refinancing can vary. Some may wish to use existing equity to pay for much-needed renovations or updates. Others may be looking to consolidate outstanding household debt other than monthly housing costs. Whatever the motivation, tapping into existing equity in your home can provide money to cover short-term financial priorities.
What if you have poor credit? Some homeowners may shy away from considering second mortgage financing or may have been turned away from the banks when applying for refinancing options. Refinancing and taking out a second mortgage on your property is still possible. Ontario-based private lenders are widely available for homeowners who may have damaged credit.
In the mortgage industry, private lenders are categorized as C lenders. Private lenders may offer private mortgage financing individually or within a group of private lenders. There are also mortgage brokers that specialize in negotiating private mortgage loans.
Mortgage Broker Store can help negotiate private mortgage financing with those that suffer from temporary credit issues directly or can refer homeowners to a wide network of Ontario private lenders who will be able to meet their refinancing needs.
Other Ontario lenders are classified into two additional categories:
- A lenders– the banks make up this lending category. Near perfect credit and substantial income is required to qualify for mortgage loans through the banks. Additionally, borrowers are put through rigorous mortgage stress tests that increased in difficulty on June 01, 2021, with the introduction of new mortgage rules.
- B Lenders– Credit Unions and trust companies make up this lending category. Although credit scores may be slightly lower than what is required for bank refinancing, a credit score of 550 is still required to be approved for mortgage financing.
How are Private Mortgage Loans Structured?
Private mortgage loans are structured differently than long-term amortized mortgages offered by most banks in several ways:
- Private mortgage financing is on a short-term basis- Most private mortgage loan term lengths are between 1 to 3 years. Long enough to help restore credit issues by paying the loan reliably on time and in full, which in turn will increase a homeowner’s overall credit score for future mortgage loan needs.
- Private loans are negotiated quickly, and the process is straightforward- Unlike the banks which may take up to several weeks to fully process, a private loan can be negotiated in as little as 1 to 4 days.
- There are different secured private mortgage loan options: Debt consolidation loans, Home renovation loans, Home Equity Line of Credit (HELOC), Home Equity loans, or primary mortgage refinancing.
Private lenders will calculate the Loan-to-Value (LTV) by assessing a current appraisal of your property. Generally, as private secondary mortgage finance is considered to be higher-risk, a private lender will not lend beyond a 75% LTV which represents up to 75% of the appraised value of your property.
A private lender will also be assessing the degree of equity that a homeowner has in their home. The degree of equity will also help to determine the final mortgage loan amount. Regardless of the type of mortgage loan that a homeowner may be interested in, the interest rates associated with most private mortgage loans generally fall between 7% to 12% depending on the financial picture presented by a given homeowner.
There will be fees associated with private loans. These fees will cover the lender’s costs and associated administrative fees to process a private loan option. In general, the fees charged by most private lenders will be between 3% and 6% of the total cost of the mortgage loan.
What A Bolton Homeowner Can Do to Help Restore Credit
- Pull your current credit report and review it extensively.
- Start to make changes to payment approaches.
- Pay all bills on time and in full.
- Try not to carry too much of a balance on your credit cards (ideally start and keep paying balances in full at the month on high-interest credit cards)
- Use credit responsibly.
- Avoid any big purchases or taking out additional loans or credit cards (this will impact your credit score by lowering it slightly).
Mortgage Broker Store Will Help Direct You Towards Private Mortgage Options
If you are a Bolton homeowner or a borrower that would like to obtain mortgage financing, don’t let credit issues stand in your way of purchasing a home or taking out hard-earned equity from your property to pay for needed expenses.
Mortgage Broker Store has access to a broad network of private lenders in the Bolton area. A private lender will be able to sit down with you and discuss your options directly which will help you achieve your mortgage goals.
At Mortgage Broker Store we are in a position to look at your unique financial circumstances and advise as to the best private loan options and lenders that will be able to handle your financial objectives directly.