Canadian banks are under strict regulations imposed on them by the government. This means that they cannot lend to everyone in need of a loan and those who are rejected must seek alternatives provided by private mortgage lenders in Peterborough. Private lenders do not have to follow the same rules and can service hard to place mortgages that were turned down by banks. Banks will reject anyone with a low credit score but private entities might be able to help.
Mortgages from Private Lenders in Peterborough
Private mortgage lenders in Peterborough loan out their money in form of registered mortgages with a property as security. Private lenders can loan as little as $20,000 which usually has a one year term. Your mortgage agent can arrange an interest only mortgage or an amortized mortgage. Riskier investments like second mortgages attract higher fees compared to bank loans. The fees are required upfront to pay professionals involved in arranging your mortgage. Private lenders are invested in real estate and this is why they are drawn to the Peterborough market with its skyrocketing prices.
Approval Criteria for Private Lender Mortgages
Private lenders need to see the market price of your house and evaluate the total debts against it. This helps them calculate loan to value ratio, the metric that guides their final lending decision. Banks rely on o credit score to assess borrowers but that doesn’t seem to bother private mortgage lenders in Peterborough who can provide loans to people with poor credit. Loan to value (LTV) ratio is obtained by dividing the total of loans on a property by the most recent price estimate. Most private lenders will only loan to properties that do not exceed the 85% LTV threshold. Private lenders may not be concerned with credit score but they are also sensitive to risk and will not loan to the property with so many loans.
Reasons for Needing a Private Mortgage
During the mortgage application process, you will be required to state why you need the money. Do not worry because this information is only needed to keep records, unlike banks that may judge applications on the reason given. Private lenders are very lenient and accept any reasonable explanation. Some of the most popular are:
- For living expenses after being laid off work
- To pay tuition fees for university
- To pay off high-interest credit card debts
- To pay for home renovations and repairs
- To stop a foreclosure or power of sale
People who did not qualify for bank loans are the primary target for private lenders. Our network offers private loans in Peterborough and other parts of Ontario. Private lenders are very flexible, that they can provide tailored solutions to the unique needs of people in Peterborough.
Rapid Financing from Private Lenders
Major Canadian banks have to follow a long, tedious mortgage approval process. It is impossible to have banks speed up their process and this is unfortunate because some people are usually in urgent need for funds. Private lenders are the alternative as they are able to offer loans much faster than banks. It is possible to have a private lender process your funds in only a day. Our network of private mortgage lenders in Peterborough also provides their services to other cities and towns across Ontario.
Private Mortgage Rates
Most people want the lowest interest rate for their home. A private mortgage broker can advise you on your mortgage options. We have access to a large number of private lending companies near you that will compete for you mortgage. Getting the a low mortgage rate is our main goal but our mortgage advisors can help with all your mortgage options.
Get the Best Private Mortgage Broker Near Me
Getting the best private mortgage broker for your individual requirements can be difficult. Our private lending company is always near you.We can send a mortgage agent directly to you home to advise on your mortgage options.
Mortgage Agents and Mortgage Advisors
Mortgage agents can act as your mortgage advisor and help you choose the best mortgage for your situation. Our agents are independent mortgage specialist that work for you to get the best rate.
What Is A Reverse Mortgage?
Many people in the Peterborough area want to know what a reverse mortgage is. A reverse mortgage is a mortgage that pays the home owner money instead of the owner paying the bank money. Basically the mortgage lender pays the home owner a set amount of money for a predetermined number of years.
Reverse mortgages are a very good financial alternative for older home owners with a large amount of equity in their home. Reverse mortgages are only available to people aged 55 or older.
Information on Lenders in the Peterborough Real Estate Market
Peterborough is between Ottawa and Toronto, both world famous cities in the real estate scene. The city has seen an increase in private lenders of real estate seeking to earn extra. Peterborough is an important economic city in Canada with many companies operating there. The real estate industry is also thriving as people are in constant search for alternative funding solutions that they would not ordinarily get from banks. Ontario, the province where Peterborough lies is a household name in the real estate markets; owing to incessant growth in returns on property. The province is both an economic hub and one of the favourite places to stay in Canada.
Our mortgage agents also cover towns which include Havelock, Norwood, Lakefield, Bridgenorth and Cambellford.