- Introduction
- Several Excellent Neighbourhoods
- Education as an Important Factor
- The Requirements for Private Mortgage Lenders in St. Catharines Approval
- Why People Need Private Lenders
- Rapid Financing from Private Mortgage Lenders in St. Catharines
- Not Restricted by the Same Rules
- The Importance of Marketing Trends
- Trends in St. Catharines Real Estate Market
- Sagging Home Sale Results
St Catharines has many noteworthy features. For example, the cost of living is 9% lower than the national average. The median age of the people who live there is 44.4 years, and 66% of the citizens in St Catharines are married.
Several Excellent Neighbourhoods
The city has many excellent neighbourhoods to choose from. Barbican Heights enjoys a park that’s suitable for family activities in all seasons. It has a playground and a basketball court that compliments the inviting atmosphere. Riverview and Lakeshore are other family-friendly locations in St Catharines.
The city has a high livability score of 85 on the website areavibes. That means it has exceptional amenities, a good cost of living and a high safety rate when it comes to crime.
Education as an Important Factor
Education is always an important metric for people looking to sell or buy. Once again, St Catharines scores high with an A rating for the schools in the area. The average test scores there for students are 14% higher than the national average.
People looking for a traditional mortgage to buy in that city need to go through a lengthy set of steps that includes a pre-approval application. This process can be long and quite involved. For starters, you’ll need to sign a credit authorization allowing a mortgage broker to perform a credit check.
There is an alternative.
Private mortgage lenders in St. Catharines operate without the same stringent regulations as traditional banks and other institutions such as credit unions. Therefore, the process for these alternative lenders is more streamlined. Please read on to learn more about how this alternative form of financing works.
The Requirements for Private Mortgage Lenders in St. Catharines Approval
Traditional institutions like banks heavily emphasize an applicant’s credit score. Mortgage lenders in St. Catharines place more focus on other metrics like the appraised value of the property and the existing equity.
The loan to value ratio (LTV) is a central formula that gets used. Private lenders will usually lend money up to a maximum of 75% LTV. This is the ratio that compares the amount of money borrowed to the market price of the condo or other property.
The LTV calculation
The calculation works this way. Say you have a house, cottage or other type of property worth a million dollars through a market appraisal. If you owe $750,000 on that same property, you qualify for a private loan.
There are various reasons why people need to turn to these alternative lenders. Damaged credit is just one. Life can present a series of unexpected financial surprises that can steer you toward this option.
Why People Need Private Lenders
One of the big reasons that people need to turn to private lenders is they are facing either a foreclosure or power of sale. The mechanics are slightly different between these two financial tools, but the result is the same. The homeowner gets evicted at the end of either one.
With a foreclosure, the lender can take the title to the property. The homeowner sees none of the proceeds from a sale. With a power of sale, the homeowner gets the excess profits from any sale. The services of private lenders can be used for a variety of other reasons, including:
- Paying for expensive home renovations. One broad category is repairing or renovating a house. This has an average cost of $48,000 and can cost even more with unforeseen expenses.
- Private mortgage lenders in St. Catharines have the capability to provide funds for your living expenses if you’ve experienced a layoff.
- The money can also be used to pay off other debts like high-interest credit cards. In fact, according to a report from Yahoo quoting Equifax ( March 9, 2023), credit card debt in Canada has topped $100 billion (CDN) for the first time.
For these reasons than others, some people are turned away by banks, and private lenders in St Catharines are their best option.
Rapid Financing from Private Mortgage Lenders in St. Catharines
The banks’ approval process for mortgages can take 11 to 25 days or more. Plus, quite a few documents need to be provided, including those for employment information, like a current T4 slip or a series of pay stubs. Traditional learning institutions will also want to see rental income, investments, or freelance income.
Not Restricted by the Same Rules
Private lenders are not restricted by the same federal and provincial rules as their traditional counterparts. These alternative lenders can also overlook credit issues and have approval for you in just a few days in many cases.
The Importance of Marketing Trends
Making the proper decision about private mortgage lenders in St Catharines means understanding the market trends for cottages, condos and other properties. These are essential to understanding the value.
Trends in St. Catharines Real Estate Market
While new listings remain solid in the real estate market in St Catharines, other metrics highlight some changing numbers. Here are some examples.
The Niagara Association of REALTORS® (NAR) MLS® reports that for February of 2023 the number of homes that sold in St Catharines was 483. That represented a large decline of 31% YoY.
Sagging Home Sale Results
Home sales were also showing sagging results. The five-year average highlighted a 20.5% dip, and the 10-year average for February 2023 showed a 15.4% decline. The benchmark price for a single-family dwelling was also down sharply at $640,700. That represented a 22.9% drop YoY.
Mortgage Broker Store is a private mortgage lender serving St Catharines and many other areas. Call 416-499-2122 or email ron@mortgagebrokerstore.com for some free advice.