The government strictly controls Canadian banks, a situation which causes potential customers to turn elsewhere for loans. Private mortgage lenders in Stouffville exclusively service the hard to place mortgages that were turned down by banks. They do not follow the same rules as banks and can, therefore, help people who didn’t qualify for traditional bank loans. Private lenders look at equity in a property rather than credit score, allowing them to loan to low credit, insufficient income and other circumstances that wouldn’t qualify for a normal bank loan. With the money, individuals can meet different financial goals including paying school fees home upgrades or living expenses.
Mortgages from Private Lenders in Stouffville
Stouffville private lenders like to give out loans as registered mortgages on a property. This is an ideal situation which allows them to sell off a property and recover their investment if a client is unable to repay the loan as agreed. The loan amount starts at $20,000 expected to be repaid in one year unless the client requests otherwise. For riskier second mortgages and loans to no income, the private lenders charge higher fees. This is in a bid to try to get back as much of their investment as possible before the client defaults. Private lenders are individuals or companies looking to profit from real estate and they are particularly drawn to Stouffville with its high real estate appreciation rates in Canada.
Approval Criteria for Private Lender Mortgages
To issue loans, private lenders focus on the debts and price of a property in the market. This is much different from banks, which rely on credit score to decide who to loan. Private lenders must calculate the loan to value ratio of a property (LTV) to see which homes provide more investment opportunity. To obtain LTV they must divide the sum of property debts with its current market value. The ideal result should be 85% LTV or less. Only in rare cases do private lenders agree to loan up to 90% LTV on residential properties. A registered mortgage may grant power of sale but because lenders should be paid from first to last, there might not be enough for a private mortgage lender in Stouffville to recoup after a power of sale.
Reasons for Needing a Private Mortgage
While applying for a private mortgage, the client is expected to state their reasons for needing the money. Unlike banks, private lenders are very lenient and accept any reasonable response. Some common explanations include:
- To pay off high-interest debts
- To pay school fees for university
- For living expenses after losing a job
- To pay for home repairs or renovations
- For business funding
Private lenders target individuals who couldn’t get bank loans or those who simply want alternatives. Private lenders in our network can now rapidly supply people who were turned down by banks with mortgages. This is very important to people facing a power of sale or foreclosure.
Fast Financing from Private Lenders
Major Canadian banks have a long, tedious mortgage approval process. It is impossible to speed this up even if you have all necessary documents in place. The banks’ system I very disappointing considering that real estate deals are very time sensitive. A power of sale notice, for example, means that you could lose your home in a short time. The best solution for such circumstances is to approach private lenders who can process funding much faster than the banks. If need be, it can only take 24 hours to get funding from a private lender. Besides Ontario, our network also loans to other Ontario Cities and Towns.
Information on Lenders in the Stouffville Real Estate Market
Stouffville is in Ontario, a province which is often in the news over its real estate market. Most recently, the News media have noticed about double-digit real estate appreciation rates, which explains the sudden interest in private real estate lending among Stouffville’s residents. These individuals are looking to generate extra income from a stable real estate market, which has been predicted to continue increasing. As a province, Ontario is Canada’s economic powerhouse and no doubt one of the best places to reside in the country.