The government has placed strict rules on Canadian banks, but this has turned away many people who would rather get mortgage loans from private lenders. Most private mortgage lenders in Whitby exclusively offer hard-to-place mortgages for people turned down by banks. Since they do not have to follow the same rules as banks. By considering the equity in a property, private mortgage lenders in Whitby offer low-income earners and people with low credit scores to access loans. With the money, they can meet financial obligations, including education, home upgrades or emergency medical expenses.
Mortgages from Private Lenders
Whitby private lenders mortgage loan money as registered mortgages secured against real estate. This is ideal because the Ontario Mortgage Act allows them to sell a property if the borrower doesn’t honour the agreement. Private lenders in Whitby generally offer mortgage loans for one year (unless you prefer otherwise), and the amount may be as little as $30,000. If it is a riskier second mortgage or the applicant has no income, private lenders will charge higher fees compared to regular bank loans. Private lenders are usually individuals or companies looking to profit from real estate. The Whitby real estate market is particularly attractive, being in Ontario, which boasts some of the highest real estate appreciation rates in Canada.
Reasons for Needing a Private Mortgage
While applying for a private lender mortgage, you will be asked to explain why you need the money. Private lenders are more lenient than banks and tend to accept the most reasonable explanations. Some popular explanations are:
- Paying off high-interest credit card debt
- Covering living expenses after being laid off from work
- Paying tuition fees for college or university
- Funding home repairs and renovations
- Stopping a power of sale or foreclosure
People who couldn’t qualify for low-interest bank loans are the main targets for private lenders. Private lenders in our network can quickly provide mortgages to those who were turned away by banks. This is very useful for stopping power of sales, foreclosure or other urgent financial needs.
Fast Financing from Private Lenders
Major banks in Canada must follow a long, comprehensive process to approve loans, and there is no way to speed things up. This is a major problem, especially when funds are urgently needed. Private lenders do not have to follow the same rules as banks and can offer loans much faster. If need be, it can take only 24 hours to get funding from private lenders. Our network of private lenders can loan to people in every city and town of Ontario.
Approval Criteria for Private Lender Mortgages
To offer mortgage loans, private lenders focus on the home’s market value versus the total of its debts. Banks use credit scores to reach a lending decision, but this is not a concern for private lenders who need to calculate the Loan-to-Value (LTV) ratio. The LTV ratio is obtained by dividing the total of debts by a property’s current price. Many private mortgage lenders in Whitby only offer loans for up to 75% on a property. This is to ensure that they get back as much of their investment as possible because it is only a matter of time before the client defaults. Even with a registered mortgage, the money gained from a power of sale may not be enough to compensate others who came before the private mortgage lender in Whitby.
Information on Lenders in the Whitby Real Estate Market
Whitby is in Ontario, one of the most discussed provinces in Canada. This is because the real estate market recently gained by double digits, prompting many people living in different parts of the province to get into private real estate lending as an ideal way of earning extra income. Ontario is a notable economic powerhouse and also one of the best places to live in Canada.
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.