Brantford, Ontario, nicknamed “The Telephone City” sits on the Grand River and is located in southwestern Ontario. Easily accessible to the GTA and Toronto, Brantford is a historic city and is great for walking and cycling due to the multitude of trails available to residents and tourists alike. Brantford is also experiencing a real estate boom throughout last year and continuing through this year with no signs of slowing down.

According to recently released real estate statistics gathered by the Brantford Real Estate Association (BRREA) in January 2021, 215 homes were sold in Brantford, which represents a 39.61% sales increase from January 2020. The average house price for a single detached primary residence increased by an incredible 46.20% from the same time last year. Brantford real estate is on fire both in terms of sales and general yearly appreciation with the average house price reaching a historical  $767,028.

This phenomenon is mirrored across the Province as properties are appreciating in the double digits. Over the last year’s appreciation in Ontario, properties have never been so significant. The Toronto Regional Real Estate Board reported that February saw the average home price surpass the $1 million unprecedented mark. In February the number of home sales increased by a whopping 52.5% from house sales recorded in February 2020.

In February 2021, Toronto home sales totaled 10,970 up from 7,193 homes sold in February 2020. Royal Bank of Canada forecasts that Toronto and the GTA should expect to see the influx in housing sales and escalation of housing prices continue well into the year.

As houses fly off the market in record numbers many Brantford residents may be eager to take out a mortgage to profit from such a robust real estate market. Brantford homeowners may also want to renegotiate their current mortgages or take out additional mortgages on their homes with historically low mortgage rates on most mortgages currently.

What if you Have Bad Credit? 

Private Mortgage Loans are Widely Available for the Brantford Homeowner

If you are close to the end of your mortgage term, looking to take out an additional mortgage on your home, or interested in securing the first mortgage to profit from the healthy Ontario real estate market the banks are not your only option. This is particularly true if you have damaged credit or may have a non-traditional full-time salary and are a contract employee or self-employed.

When determining mortgage eligibility, the banks (referred to in the mortgage industry as A lenders) have imposed very rigid criteria for Ontario homeowners to meet and borrowers are put through difficult mortgage stress tests before a bank will approve new or additional mortgage financing. Banks will be looking for near-perfect credit scores and substantial household income.

Other lending options include credit unions or trust companies (referred to in the industry as B lenders) and with these lenders, there is more leniency when assessing credit scores. A bank will require 600 and above, while a credit union will accept a credit score of 550 and over. B lenders still do prefer full-time salaried employees as opposed to self-employed or contract income when approving mortgage loans.

At Mortgage Broker Store we have access to a network of experienced private lenders that are considered C lenders and we will be able to connect you with a private lender in the Brantford area to discuss private loan options. Some types of private loan option include:

  • Second Mortgage Using existing equity in your home and assessing the loan to value (LTV) a private lender will be able to negotiate an additional mortgage on your home freeing up funds to pay for immediate expenses or to maybe invest in a second property in the robust Brantford housing market.
  • Home Equity Loan- Private lenders will determine the existing equity built in your home (requiring usually 25% equity) and calculate LTV (private lenders will consider lending up to 75% LTV which is 75% of the appraised value of your home).
  • Home Equity Line of Credit (HELOC)– A line of credit can be set up using the equity in your home. This represents a revolving line of credit and can be used as needed.
  • Debt consolidation loans-To get over the debt burden of trying to pay down multiple debt payments, a private lender can negotiate a debt consolidation loan that will merge all the debts under one, easily managed monthly payment. The interest rates associated with all private mortgage loans, including debt consolidation, tend to be higher than the banks can offer. Rates on all types of private mortgage loans are usually between 7% to 12% with any associated fees ranging from 3% to 6% of the total cost of the loan. These rates may be higher than the banks will charge, however still be substantially lower than what consumer loans charge which can run easily up to 21% on some credit cards.
  • Home renovation loans– Private mortgage loans can help to pay for any needed renovation to your home. By utilizing existing equity in your home you can put these funds towards renovations and fixes that will further increase the market value of your home in an already robust Brantford housing market.
  • Bridge financing-If you are requiring short-term financing for different reasons private bridge financing can help bridge the gap. Similar to most private loans, it is negotiated on a short-term basis. Most private loans are of term lengths between 1- 3 years.
  • Negotiating new terms on your principal loan– By taking out a private mortgage loan, it will enable a Brantford homeowner to meet some of the terms of their current primary mortgage which will ensure mortgage payments do not fall into arrears or pay off arrears if the mortgage is already past due.

Mortgage Broker Store can Help Connect you with an Experienced Brantford-based  Private Lender 

At Mortgage Broker Store we are both experienced and have specialized knowledge in the area of private mortgage loans. With access to a broad network of Ontario-based private lenders and private lenders within the Brantford area, we are more than willing to answer any concerns you may have when dealing with poor credit and obtaining private mortgage financing. Take advantage of a very healthy Brantford real estate market by obtaining private mortgage financing through private lenders in your area.

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