Etobicoke is in Toronto, Ontario, Canada, where the housing market is booming. Toronto has a variety of brokers that offer private lender mortgages. We have many private lenders in our network ready to provide money in Etobicoke and the entirety of Toronto. Our private mortgage lenders in Etobicoke accept even those with bad credit and the self-employed who might not get bank loans. Call us today to discuss your situation and see the financial options available to meet your needs.
Etobicoke Private Lender Mortgages
A private lender mortgage in Etobicoke is a loan secured against property and one that a large financial institution doesn’t provide. Private lenders are individuals or companies deciding to invest their money in the real estate sector. Most private lenders in Etobicoke prefer investing in properties owing to the high increase in price and the ease of selling a property through power of sale if a client cannot pay their fees. The lenders claim investment in chronological order from the initial to the final lender of the private mortgage.
Private lenders provide mortgage amounts from $30,000 to $700,000 or more. Generally, the interest rates range from 8% to 12%, considering the value of existing mortgages, a property’s condition, income and credit score, among other factors. Private lenders are not covered by government insurance for mortgages, so many charge a fee in advance to cover the risk associated with private loans. Other fees are usually for paying mortgage brokers, real estate lawyers and home appraisers.
Reasons to Get a Private Lender Mortgage
Private lenders provide money for a variety of personal and business reasons. In this case, lenders will want to know why you need the money and whether you can service the mortgage. Some of the common reasons why people opt to get a private lender mortgage include:
- Disability or sickness that causes inability to work
- Self-employment or retirement which makes it impossible to get loans from banks
- To repair or repair a property
- Recent job layoff
- Need to have money urgently
- To pay off high-interest debts
Private lenders are a popular option for those who do not qualify for bank loans. They are typically more expensive than bank loans and are recommended as short-term solutions. Our company specializes in providing these short-term solutions and also helps clients qualify for lower interest rates from banks after they have finished the private mortgage.
Mortgage Approval Requirements for Private Lender Mortgages
Certain conditions must be met before private lenders can offer mortgages. The most important condition for these lenders is a property’s Loan-to-Value (LTV) ratio. Most private mortgages are for homes occupied by owners. Private lenders need an LTV below 75% for owner-occupied homes. Private lenders in Etobicoke need 75% LTV for rental properties. Rental income properties must have a strong cash flow to convince the lender that you can support the mortgage payments.
Private lenders in Etobicoke also look at the client’s credit rating, but this will not cause you to miss the loan. A poor credit rating can lead to high interest rates for mortgages, but it is possible to get low rates if you have a high credit score. For banks, a low credit score automatically leads to the dismissal of loan applications. Lending to poor credit is impossible for banks that follow set rules to mitigate risk.
Information on Private Mortgage Lenders in Etobicoke
The real estate market of Toronto as a whole is the fastest growing in Canada. There was more than 20% of the industry in house prices and sales between 2015 and 2016.
City regulations promote the building of condominiums, which is why most of the new homes in this area are condo units. Etobicoke has a high unmet demand for detached and semi-detached homes. The average home in Etobicoke goes for $737,233 and sells within just 22 days.
Looking for expert guidance in navigating the world of private mortgage lending in Ontario? Look no further than Mortgage Broker Store. Jonathan Alphonso and our team specialize in connecting clients with the perfect private lender tailored to their needs.