A private mortgage lender in Cobourg, Ontario can help if you have already been turned down for a second mortgage or loan by the major Canadian banks. Our company, Mortgage Broker Store, may still be able to help you get the funds that you require. We will look at your total financial situation to fully assess if private mortgage financing fits your needs.
What is a Private Mortgage?
A private mortgage loan comes from a private mortgage lender who provides the money. It is also called a home equity loan or private second mortgage. Most private mortgage lenders in Cobourg often only lend in within their local area. Some private mortgage loans can start from as little as $20,000.00. The term of the mortgage is usually 1 year but could be longer.
The private mortgage company then goes through the same process a Canadian bank does and registers the loan against your property. With private lenders, the decision to lend is based on the equity and value of the property being put up as collateral, and not based on your current credit standing. Most private mortgages and second mortgages in Ontario have a maximum loan to value ratio (LTV) of 75%; while in some rare cases, the LTV can be as high as 90%.
Reasons for a Private Mortgage
Some reasons for obtaining private mortgage loans are: debt consolidation, home renovation, recent job loss, divorce, recent illness, and many others that require a huge expense. Due to some of these factors, the borrower may not be able to take a loan or mortgage on their property from Canadian banks or other financial institutions. Our job is to get you the loans you need. We can arrange your loan even if you do not have a great credit score.
You may be able to borrow more money with a private investor mortgage than you think; a private mortgage holder may be willing to lend you up to 90% of your total home value. In contrast, a bank in Ontario may only be willing to give you up to 75% your home value. You can now use more of your home equity to manage some immediate bills or consolidate your debt payments. This can result in lower interest payments to you.
What are private mortgage investors looking for when they provide you with a private mortgage investment? They look at your credit score, and job situation but for private second mortgages the equity in your home is the key factor in private money lending.