The strict mortgage approval requirements by banks in Canada deter many from applying for mortgages. The credit score requirement for a bank loan is 600, and more people will be denied loans due to higher interest rate qualifications. People turned away by banks have only one option: private lenders with more lenient rules. Private mortgage lenders in Stratford exclusively service hard-to-place loans rejected by banks.
Reasons for Getting a Private Lender Mortgage Loan
When obtaining a private mortgage, you must state why you need the money. Unlike banks, this information is only for the records and will not be used to gauge your worth as a client. People have unique needs for money, which is why private lenders strive to provide tailored loan solutions. The private lender loan is one you can use to meet different needs and easily pay back according to the agreement. Some common reasons for needing the loan include:
- Investing in higher education
- Paying for living expenses after loss of income
- Covering traumatic events like car accidents or the death of a relative
- Upgrading or renovating an existing building
- Consolidating debts
Most people who seek private mortgages are those who were disqualified from accessing low interest bank loans. Several of our clients have bad credit or low income, as it is our specialty to offer loans in such circumstances. In addition, we help our clients repair credit to ensure their qualification for competent bank loans in future.
Rapid Mortgage Financing
Banks, credit unions and all institutional lenders have a long mortgage approval process. This is impossible to speed up even when you have all the necessary documents. Real estate deals are time-sensitive and will collapse if funds aren’t provided on time. We are able to provide fast financing for such deals, so if your home purchase could collapse due to time factors, we will promptly connect you with one of our many private mortgage lenders in Stratford. We boast a great relationship with leading lawyers and real estate firms in Stratford, which enables us to provide urgent funding for property sales.
Stratford Private Mortgages
A private lender in Stratford is a business or individual invested in the real estate markets. Stratford’s real estate market is popular for stable, steady growth, which is attractive to private lenders. There is a huge presence of such lenders specializing in offering loans to Stratford and its environs. Lenders typically give upwards of $20,000 for one year unless the client has specific requirements. An extended period is possible for low-income earners who want to pay lower monthly instalments. Private mortgage lenders secure loans with property, allowing them to sell it if you fail to pay. In a power of sale, the first mortgage holder is paid first, followed by the second and third lenders. Private lenders charge high interest rates and fees to recoup costs before the client defaults.
Private lenders have different techniques of measuring credit worth from banks that solely depend on credit score. The key metric for a private lender is called the Loan-to-Value (LTV) ratio of a property. The LTV ratio is the percentage of the property’s value owed in mortgages. If a homeowner has a home worth $1,000,000 with a $500,000 first mortgage and is requesting a $250,000 second mortgage, the LTV ratio for the requested mortgage can be up to 75% of the property’s value. To get the lowest interest rate, you will need an LTV ratio below 65% and enough income to cover the monthly interest payments. Private lenders will offer a rate between 8% to 12%. The lower the LTV, the better the rate.
Information on Stratford Private Lenders
Like several cities in Ontario, Stratford has experienced massive increases in sales and real estate prices. This kind of stable market attracts private lenders who are trying to gain from real estate. Housing in Stratford is affordable, unlike in other Canadian cities like Vancouver. Stratford boasts a steady economy, making it a great place to live in Canada. The whole of Ontario has recently witnessed marginal growth in real estate prices and sales, which contributes to the increased presence of private real estate lenders as people try to supplement their income.
Looking for expert guidance in navigating the world of private mortgage lending in Ontario? Look no further than Mortgage Broker Store. Jonathan Alphonso and our team specialize in connecting clients with the perfect private lender tailored to their needs. Whether you need a first mortgage, second mortgage, or specialized loan, we have you covered. Call 416-499-2122 or email ron@mortgagebrokerstore.com to start your journey toward financial solutions today!