If major banks have already rejected your second mortgage or loan in Uxbridge, a local private mortgage lender may still assist. We will look at your total financial situation to fully assess if private mortgage financing fits your needs.
What Is a Private Mortgage?
A private mortgage loan, also known as a home equity loan or private second mortgage, comes from a private mortgage lender. Most private mortgage lenders in Uxbridge tend to only lend in small geographic areas. Some private mortgage loans start at $20,000.00, with terms typically one year but potentially extending longer. The private mortgage company follows a process similar to Canadian banks, registering the loan against your property. The private mortgage company follows a process similar to Canadian banks, registering the loan against your property.
Lending decisions are based on the property’s equity and value as collateral, not on your credit history. Most private mortgages and second mortgages have a maximum Loan-to-Value ratio (LTV) of 75%.
An 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 a loan-to-value 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.
Reasons for a Private Mortgage
Reasons for private mortgage loans include debt consolidation, home renovation, job loss, divorce, illness, and other personal needs. Due to these factors, borrowers may be unable to secure loans or mortgages from Canadian banks or financial institutions. Our job is to secure the loans you need, even if your credit score isn’t perfect.
Market in Uxbridge Information
In May 2024, the average house in Uxbridge sold for $1.5 million, marking a significant 14.7% increase from the previous month. This surge translates to a robust 28.2% quarterly rise and a substantial 15.1% increase year-over-year. These figures underscore a thriving Uxbridge housing market, characterized by active buying and selling with profitable outcomes, according to Zolo.ca. Additionally, the availability of private lending has further stimulated market activity, providing flexibility and opportunities for prospective buyers and sellers alike.
Need Private Lending Advice?
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’re seeking a first mortgage, second mortgage, or specialized loan, we’ve got you covered. Call 416-499-2122 or email ron@mortgagebrokerstore.com to start your journey toward financial solutions today!