Throughout 2020 we witnessed appreciation levels for houses in the GTA and throughout Ontario skyrocket. Year-over-year appreciation hit an all-time high of 31.1%. These numbers were seen in all outlying areas of the GTA including Burlington.

A hot housing market throughout the last 18 months and as we enter the fourth quarter of 2021, Burlington is a wonderful place to call home for its 183,314 residents. Providing an enviable and relaxed lifestyle, Burlington is also blessed with natural charms including neighborhood parks and walking paths for walking and cycling.

Lying on Lake Ontario which provides endless outdoor activities for those who live there, Burlington is situated on the western end of Greater Toronto. As such, the municipality has very accessible transportation links into the Center of Toronto both by highway and public transit.

The Burlington housing market has also been in an enviable position throughout the last 18 months and continues to be robust. Housing has continued to appreciate with a 16.6% yearly increase since September of 2020. The average house price is $1.1 million and houses are selling quickly with an average of just 14 days on the market.

All these statistics are good news for those homeowners who have seen significant appreciation in their properties and may want to tap into their newfound equity for a variety of short-term financial needs.

What if a Burlington homeowner has poor credit? What options are open to taking out a second mortgage on your home when credit is an issue? Burlington has several lending options, for those with poor credit a good solution would be to consider taking out a private loan for the short term to help meet financial obligations. Through an established Burlington-based private lender.

By tapping into existing equity and seeking private mortgage financing, a Burlington homeowner can address immediate financial concerns and is in a position to establish credit if this private loan is paid on time and in full each month.

Mortgages From Private Lenders

Private mortgage lenders are classified as C lenders in the mortgage sector. When approaching a bank that is considered an A lender, credit and income will be the criteria that mortgage loan approval will be based on.

In addition to proving creditworthiness and substantial household income, banks will put Burlington homeowners/borrowers through stringent mortgage stress tests that make the overall mortgage approval that much more difficult. Banks will demand a credit score of at least 600 in 2021.

Although approaching a credit union or trust company in the Burlington area may still be an option, these lenders which are considered B lenders still require a credit score currently of at least 550 and prefer traditional, substantial, and easy-to-calculate household income.

A private lender will be able to overlook credit problems and work with clients that may have non-traditional income or limited income to negotiate a short-term private mortgage loan. A Burlington homeowner with damaged credit will be able to utilize existing equity to take out a range of second mortgage loan options to help pay down pressing debts.

Approval Criteria for Private Lender Mortgages

private lender will calculate the Loan-to-Value (LTV) to determine the overall mortgage amount. To help mitigate risk a private lender will not loan beyond 75% LTV which represents 75% of the appraised value of your home. A private lender will also be assessing the degree of equity a Burlington homeowner has in their home which will need to be over $70,000.

To approve mortgage financing, a private lender will also be looking at criteria that go beyond income amount and credit score. A Burlington private lender will be assessing the home itself including your home’s current appraised value, the location of your home, and the current condition it is in. He/she will take into account any renovations that may have increased its overall appraised value and conversely any fix ups that may be needed.

Reasons for Needing a Private Mortgage

The reasons for approaching a private lender will vary for Burlington homeowners and depend heavily on their unique financial needs and overall financial picture. A few reasons may include:

Fast Financing from Private Lenders

Fortunately, when Burlington homeowners have pressing financial needs a private lender will be able to provide short-term second mortgage financing more quickly than their bank counterparts. Typically processing times are much faster and Burlington homeowners can be approved on the same day with just a week or two to complete all the paperwork.

This faster processing time allows for short-term financial obligations to be met and if a Burlington homeowner is facing legal costs related to a potential power of sale or foreclosure, these costs can be addressed quickly.

Mortgage Broker Store Will Help Direct Your Private Mortgage Options

If you are an Ontario homeowner/borrower who would like to obtain mortgage financing, don’t let credit issues stand in your way of 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 throughout the Province with specialized knowledge of the private mortgage sector. A private lender will be able to sit down with you and discuss your options directly which will help you achieve your mortgage goals.


Get a Quote

Our mortgage experts will review your situation and offer a quick mortgage approval.

    Your Name (required)

    Your Email (required)

    Phone Number (required)