Private mortgage lenders in Kingston offer a streamlined process that’s a suitable alternative for people facing certain economic situations. Private mortgage lenders focus more on the equity in a home to approve a mortgage loan and less on other benchmarks, like a credit score, and the approval process is also quicker. They can be a good option for people looking to borrow money quickly, using the equity in their home.
Read on to learn more about how private mortgages blend well with Kingston’s real estate trends.
Why Are the Rates and Fees Higher on Private Loans Than Advertised Bank Rates?
The answer is simple. Lenders with poor credit and non-traditional income streams view these mortgage loans as inherently higher-risk. Banks require exemplary credit and substantial household income and can therefore, offer lower corresponding rates.
Private Mortgage Options for Kingston-Based Borrowers
Private mortgage refinancing options for homeowners wishing to use their home as collateral and existing equity can include:
- Home equity loans – A second mortgage utilizing existing home equity to be used for a multitude of short-term financial needs.
- Home Equity Line of Credit (HELOC) – Also utilizing existing equity and serving as a revolving line of credit, enabling funds to be available as the balance is paid off, a homeowner only needs to pay the monthly interest on the line of credit.
- Debt Consolidation Loans – Merging multiple debt payments into one manageable monthly payment, allowing all associated housing costs to be covered more comfortably.
- Home Renovation Loans – Access equity to pay for any updates or renovations to your property. The funds are negotiated on a short-term basis.
- Bridge Financing – Providing short-term funds to meet immediate financial objectives, bridge loans are typically 3 to 6 months in length and structured as temporary financial solutions.
- Second Mortgage – Pay for immediate expenses and pay off mortgage arrears if behind in the mortgage payments or help pay for monthly principal mortgage payments.
- Refinancing – Adjust the terms of the principal mortgage loan to allow for easier monthly payments.
Common Traits for All Private Mortgage Financing Options
- All private mortgage options are structured as short-term only. Typically, a private mortgage loan will be 1 to 3 years.
- Private mortgage loans are negotiated quickly, with processing times generally taking as little as 2 to 3 weeks.
- Private second mortgage loans tap into existing equity in your home.
- Private loans get negotiated despite poor credit.
What to Bring When Contacting a Private Mortgage Lenders in Kingston
- A list of additional assets that you may have besides your primary residence.
- Paperwork proving all sources of monthly income, including investment income, contract income, self-employed income sources, and child/spousal support monthly income.
- A recent appraisal of your property
- 2 Years of Notice of Assessments from the CRA, if applicable.
- Clarity on the type of private mortgage financing you will most likely need.
- Kingston: A Good Place to Get a Private Mortgage
- Kingston is a great city to live in, and many private lenders are comfortable investing in this city. It has several unique attributes. It is home to Queen’s University and Fort Henry. The downtown core has several exciting shops and parks like Grass Creek and the downtown waterfront trails. These attributes contribute to Kingston’s real estate market, as reflected in recent numbers.
Good Real Estate Numbers in Kingston
Current numbers from the Kingston and Area Real Estate Association MLS show that, on a year-to-date basis, home sales totalled 1,526 units over the first six months of 2024, up by 7.6% from the same period in 2023.
Kingston is a popular tourist destination, situated on the eastern end of Lake Ontario, the mouth of the St Lawrence River, and the most southerly end of the world-renowned Rideau Canal.
The price of a single detached property in Kingston in July 2024 was $580,000.
Despite the highly positive Kingston real estate numbers, some existing Ontario homeowners may have damaged credit. Many people have been turned away by banks for mortgage refinancing. If poor credit has been an obstacle in seeking mortgage financing, well-established private lenders in the province provide short-term mortgage financing.
How Do Private Mortgage Lenders in Kingston Approve Loans?
Private lenders can assess broader criteria, which enables them to negotiate mortgage financing regardless of a credit score. What exactly are Kingston-based private lenders looking for?
- A recent appraisal of your property
- Substantial equity in your home
- Any additional financial assets (if applicable) to help leverage mortgage financing against
- All sources of monthly income (including investment income, self-employed income, contract-based income, and freelance income)
- The overall Loan-to-Value
Based on the appraised value of your property, a private lender will calculate the Loan-to-Value (LTV). Most private lenders will lend up to 75% LTV, which represents 75% of the appraised value of your property.
Any fees associated with a private loan will generally fall between 3% and 6% of the total cost of the private mortgage loan. Interest rates will typically range between 8% and 12%.
Mortgage Broker Store Can Negotiate Different Types of Second Mortgage Loan Options
With access to a broad network of well-established and experienced private lenders across Ontario, Mortgage Broker Store can connect an interested homeowner to private lenders to discuss various refinancing options.
We can also negotiate private financing directly, depending on your specific financial objectives. Poor credit and non-traditional income need not be a barrier to obtaining a bridge loan or any other loan to help pay off pressing monthly liabilities. Don’t hesitate to contact us at your convenience to discuss the best options to suit your unique financial needs.
- Introduction
- Why Are the Rates and Fees Higher on Private Loans Than Advertised Bank Rates?
- Private Mortgage Options for Kingston-Based Borrowers
- Common Traits for All Private Mortgage Financing Options
- What to Bring When Contacting a Private Mortgage Lenders in Kingston
- Good Real Estate Numbers in Kingston
- How Do Private Mortgage Lenders in Kingston Approve Loans?
- Mortgage Broker Store Can Negotiate Different Types of Second Mortgage Loan Options