Private mortgage lenders in Richmond Hill can approve people who don’t qualify through traditional banks.
Read on to find out more about Richmond Hill and how even someone with bad credit can qualify for a loan.
The city is located in York Region. It is well known as an excellent place to grow or start a business. Some of the major employers in Richmond Hill include The BMW Group Canada and Apotex Inc.
The demographics of the town report the median age is just over 42 years old. A full 82% of the people who live in Richmond Hill are married. Fifty nine percent of the people who live in the town are families with children at home. Some of the best neighborhoods in Richmond Hill include Mill Pond, Northridge, Richvale, and Crosby.
Richmond Hill is also close to other hubs in the GTA including Markham, Vaughan, New market and Scarborough
People in Richmond Hill have choices when they are looking for a mortgage. Private mortgage lenders in Richmond Hill are a solid option for a specific group.
Private Lender Mortgages in Richmond Hill Versus Conventional Loans
Private lender mortgages in Richmond Hill are an alternative for people who have been turned down for conventional loans. Canadian banks are heavily regulated while these private lenders don’t operate under the same government restrictions.
What’s more, their focus and the criteria they use to approve applications is different. The banks and more traditional institutions like credit unions place an emphasis on reliable income and credit scores. There’s usually a stress test involved whereby applicants need to qualify at the five year posted rate or two percentage points higher than the one offered by their broker or bank. The benchmark is the higher of the two.
Read on to find out how mortgages from private Lenders in Richmond Hill are different.
Private Lenders in Richmond Hill Loans
Private lenders in Richmond Hill are attracted to the area’s real estate due to the high price, appreciation and values. The minimum these lenders usually loan out is $25,000 or more on single-year terms as of 2022. The loans are set up as a registered mortgage on the house. That way, the property can be sold if the borrower fails to pay.
Requirements for Private Mortgages
The requirements for private mortgage deals are a little different.
Canadian banks put an emphasis on an applicant’s credit score. Private lenders are more concerned with the value of the property. The Loan to Value (LTV) is the most important metric in private mortgage applications.
In order to calculate LTV, the existing debts on the property are divided by the selling price. For example, the LTV value of a house with a selling price of $1,000,000 and $550,000 in debts is 55%. For residential properties in Richmond Hill, a private lender will not invest beyond 75% LTV.
Reasons for a Private Mortgage
You’ll need to list reasons for a private mortgage when you fill out the application. Some of the common answers include:
- Paying off credit card debts.
- Renovating a property or making repairs.
- Having a supplemental income after losing a job.
- Preventing a power of sale or foreclosure.
- Paying for college or university tuition.
Private lenders usually service applicants who have been turned away by traditional banks and credit unions. Richmond Hill private lenders specialize in these hard to place mortgages. A private lender mortgage can also improve your credit score.
Richmond Hill Real Estate
Currently, Richmond Hill real estate is a good investment. Current MLS® stats indicate that the average price for a house in the area is $1,464,190 as of October 2022. There were also 304 new listings in the area in 28 days
That represents a monthly bump of 11.6% and a yearly increase in price of 2.3%. Finally, the most recent numbers report there were 144 homes sold in the last 28 days with an average number of days on the market at twenty-one.
Quick Private Lender Funding
If you’re looking for quick private lender funding in Richmond Hill, a traditional bank might not be the best choice.
Canadian banks are required to follow a long mortgage approval process that can’t be tweaked or sped up. Many of these real estate transactions are susceptible to delays that can cause the deal to fall apart. Private lenders specialize in funding that’s generally faster than banks.
We are able to provide funds in a single day when required. The private lenders we deal with lend all across Ontario including Richmond Hill.