Canadian banks are an example of institutional lenders who follow strict rules imposed by the government. These turn people away from banks to private mortgage lenders in Oshawa who are less regulated. Most private lenders in the city only offer mortgages that wouldn’t be serviced by banks. They do not judge loan applications the same way banks do, granting a second chance for those who didn’t meet the banks’ approval criteria. Oshawa’s private lenders do not have to follow the rules governing banks and if you couldn’t get a bank loan, maybe a private lender can provide the money you need.
Private Lender Mortgages in Oshawa
The private lenders in Oshawa extend registered mortgages secured by real estate, such as houses or condos. With this, they have the power to sell a property if you are unable to pay the fees as agreed according to the Ontario Mortgage Act. They typically loan as low as $20,000 for one year but it is possible to negotiate a longer term with the private lender. Second mortgages or loans to people without an income are high-risk investments which attract considerably high fees compared to bank loans. The main interest for private lenders in Oshawa is the real estate which can generate huge profits. They are particularly drawn to the Oshawa housing market which has witnessed high real estate appreciation rates in the recent past.
Criteria for Approving Private Lender Mortgages
To give a mortgage private lenders must learn the true market value of a property and its debts. Banks mainly depend on credit score to decide who qualifies and who cannot get a loan. Using the debts and a property’s market value, private lenders calculate the loan to value of a property. This is an important metric that indicates worthy investments. The LTV is obtained by dividing property debts by its appraised price. If you own a million dollar house with $800,000 debts, the loan to value ratio is 80%, which is good to earn you a loan. Most lenders in Oshawa and Ontario, in general, will only loan to properties with less than 75% LTV. It is already too risky lending to people with bad credit and even worse if the property has too many debts. A private lender must protect their interests as they do not know when a borrower will fail to pay fees. Ensuring enough equity guarantees that there will be enough left for a private lender once a property in default is sold off.
Reasons for Needing a Private Lender Mortgage
The private lender will ask why you need the money but they are very understanding. They generally accept all reasonable reasons including the most popular;
- To pay living expenses after a layoff
- To stop a power of sale or foreclosure
- To pay high-interest credit card interest
- To pay tuition fees of college or university
- To pay for home repairs or renovations
Individuals who were rejected by banks can get the loans they need from the more lenient private lenders. We have a wide private lender network who are ready to loan individuals who were turned down by banks for loans.
Swift Financing from Private Lenders
While banks must follow a long process before approving mortgages, private lenders can offer the funds urgently needed to sell a property. It can take as little as a day to get funding from a private lender. Our network loans on properties in each Ontario city and town including Oshawa. They are professionals with a clear understanding of the industry gained over many years of service. They carefully listen to each client’s needs and try their best to find a solution that is perfectly tailored to them. This means that the loan you get will be affordable to repay and most important; it will meet your needs.
Information on Lenders in the Oshawa Real Estate Market
Oshawa boasts a higher than average median housing price compared to the rest of the province. This doesn’t seem temporary as predicted by different real estate statistics that generally indicate a booming real estate market for Ontario. This is why many people in Oshawa are taking up private lending in real estate as a means of generating some spare income. As a whole, Ontario is considered to be one of the best places to reside in Canada.
Private Hard Money Lenders
The term “Hard Money Lenders” refers to the type of asset or security that the lender is looking for. Hard assets are homes, condos, buildings retail plazas, or other physical properties that can be touched. Stocks and bonds are not considered to be hard assets. To qualify for a hard money loan talk to your broker and you follow the same process. If you have multiple properties such as houses and rental units, you should have financial statements ready for the hard money lender to review. Remember your credit score does not matter, what really matters is the value and equity in your real estate.
Private Lender Bad Credit Loans
Private lending companies deal with bad credit on a daily basis. Their job is to provide private financing for people with poor or bad credit. Having bad credit is more common than most people realize, just miss a few credit card payments and your credit score will drop. Bad credit private lenders realize that a low credit score does not mean that you do not qualify for a loan, but it usually means that you will pay a higher interest rate.
Private Mortgage Brokers
If you are looking for private financing then you should contact a private mortgage broker. Private brokers can tell you if you qualify for, how much the interest rate will be and how long the process will take. There are many different private lending companies, they all have different lending qualifications. A broker can help speed up the lending process and get the best financing for your mortgage. Private mortgage brokers arrange a lot of business and commercial loans. Private commercial mortgage usually involve large sums of money and can take many months to complete due to the complex financing.