Many people fail to meet a bank’s strict mortgage requirements and get turned down. A private lender in Markham is a popular alternative since their requirements are more lenient. Markham’s thriving real estate market has attracted many private mortgage lenders.
Affordable Housing Units
According to CMHC’s latest affordable housing report, Canada will need to have an additional 3.5 million affordable housing units by 2030. That’s on top of the projected increase of 2.3 million units between last year and 2030. All these numbers reflect the current projected rate of new construction. The CMHC defines affordable housing as structures that cost less than 30% of a household’s before-tax income.
Affordable Buildings
The city of Markham is doing its part. According to news reports from 2022, hundreds of affordable buildings will be coming to the city’s northeast corner.
Markham Private Lender Mortgages
Private lenders in Markham typically deal with individuals looking to pay off debts or buy with damaged credit. The demand for private mortgages is quite high in both of these groups. Markham shares a border with Toronto, which makes it an attractive investment for private lenders. Markham’s private lenders can provide mortgages for a single-year term or longer. Lenders arrange the loan as a mortgage, securing the debt to the property.
Secured Debts
As with all secured real estate and secured debts, the property may be sold if the borrower stops making payments. Private lenders typically have different lending criteria than banks. They are not as concerned with credit scores but instead focus on the value of the property and existing secured debts. Private lenders also focus on a metric called the Loan-to-Value Ratio (LTV).
Loan-to-Value Ratio (LTV)
To calculate a home’s LTV, the amount of existing secured debt is divided by the property’s market value.
A property’s LTV equals the value of existing debts against the home, divided by the market value. For example, a property valued at $100,000 with a $75,000 total mortgage would have an LTV of 75%. Most Markham private lenders are able to go up to 75%. The same goes for clients in Brampton, Mississauga, Vaughan and Scarborough.
Common Reasons to Get a Private Mortgage
A private lender wants to know why you will need the money. There are many unique reasons, but some of the more common ones include:
- To pay off high interest debts such as credit cards
- For renovations or repairs to your home
- Loss of job or other income source
- To stop a power of sale or foreclosure proceedings
- To pay education fees
Some people come to private lenders after they’ve been turned away by the banks. Markham private lenders specialize in financing for people with bad credit or low incomes.
They develop plans that help clients improve their credit scores in the future.
Fast Private Financing
Most large lending institutions have lengthy approval processes. This can cause issues with time-sensitive deals.
A Private Lender is Your Best Choice for These Types
Our large network of Ontario private lenders can provide loans in Markham and the rest of the GTA. Our brokerage has close relationships with all of Markham’s lending firms and their lawyers. We can provide fast financing for deals with tight time constraints.
Information on Markham Real Estate
Markham MLS® stats for April 2024 indicate there were 643 new listings in the town in 17 days. The average sold price for the same period was $1.4 million. That represents a positive monthly change of 3.7%. The quarterly change was an increase of 10%. The YoY difference was a slight decrease of 6.1%.