Private second mortgage lenders in Nova Scotia will consider making loans to people with a poor credit rating or that are self-employed. Private lenders in Nova Scotia are the primary source of funds for second and third mortgages. These types of loans have a higher level of risk major Canadian banks will not consider this type of loan.
Most private second mortgage lenders in Nova Scotia use the loan to value (LTV) ratio as the primary indicator to funding a mortgage deal. A LTV over 75% means that your chances of getting funding are low while a LTV below 65% means that your chances of getting funding are very good. The tricky area is when your LTV falls in between 65% and 75% LTV. Second mortgage lenders in Nova Scotia will look at each individual situation to decide on whether to provide funding for a mortgage. For very high LTV ratio a key factor may be how long it takes to sell a house.To find out your LTV ratio simply divide the existing mortgage by the value of the property. For example a $100,000.00 first mortgage divided by the $300,000.00 value of the property results in a 33% LTV ratio.
Most private lending companies require an appraisal for real estate transactions to determine the present market value of a house or property. The appraisal process is fairly simple; a trained and certified appraiser will inspect your home and compare it to three similar homes that have recently sold in your area. Based on the comparative selling prices, features and condition of your home the appraiser will come up with a market value for your home. Private lending companies and appraisers like to see a clean and tidy house, so clean up before the appraiser comes to inspect. Cleaning and tiding will also give your property the maximum market value possible.
Our private lending companies and mortgage brokers are here to help you get the money required for your mortgage. Our brokers try to make the mortgage process as straight forward and transparent as possible. All our clients are informed of all the possible options before the y choose the mortgage that is right for their situation. For a free consultation call one of our brokers right now to find out how a private second mortgage lender can help you.
Follow this link for the Province of Nova Scotia.