Helping people in Niagara Falls, Ontario with their Private Mortgage Lending and Financing Needs
Most Canadians are not familiar with the concept of private mortgages. There is nothing really complicated about Private Mortgages, only that they are unfamiliar to most people in the Niagara Region. Private Mortgages help to fill the gaps that Institutional Lenders, such as the big banks, are simply unable or unwilling to fill. Private Mortgages offer an alternative choice to borrowers in the Niagara Falls area.Contact Us For More Details
Niagara Falls Private Mortgage Lending FAQ's
Why would I need to use a private lender for my mortgage?
You might not be able to qualify for a loan from your local bank or lending institution for a wide range of reasons. You could be self-employed or simply don't meet the banks typically conservative critera and thus you're left high and dry. This is where private lending comes into play. Private lenders take into account a property’s overall value and marketability as opposed to simply the borrower’s credit history.There are private individuals who are willing to lend their money to you in hopes of earning a return on their investment.
Examples of when you might need to use a private lender
> purchase of a property that a conventional lender or bank will not finance
> you need immediate financing and cannot wait for a long approval process
> you simpy need a short term loan
> your credit history might not be ideal and thus you are always being turned down by conventional lenders
> your income is possibly nonconfirmable (i.e. self-employed individuals)
Who are the lenders?
Private lenders can be individuals, a group of investors who pool their money on a case-by-case basis or possibly a group of investors who pool funds to make availabel to several different deals.
What are the interest rates on a private mortgage?
Private mortgage lenders base their rates on the area, type of property, degree of risk perceived and estimated costs of administration. Each private mortgage interest is quoted on individual circumstances. Typically however the interest rates are a bit higher than what you would see advertised from most lenders. You can likely expect mortgage interest rates of 10% and higher.
How long does it take to get approved for a private loan?
Approval typically takes place within 1 week of application and can sometimes be done even quicker. The actual processing of the loan and the final release of the funds can take approx. 2-3 weeks.
What criteria will private lenders look for?
Just like with a traditional mortgage private lenders do need you to provide some of the same basic items such as...
> Property value and type
> Your income
> Down payment amount (if you are purchasing)
> Equity (if refinancing)
Make this the start of a new financial life. We'd love to help you crunch some numbers to see what kind of life you could be living! Talk to us about scheduling a free, no-obligation review of your situation. We guarantee you'll be glad you did..