Private Mortgage Mississauga | Obtaining it in CanadaAdmin
Obtaining a Private Mortgage in Canada
So you are buying a house and you aren’t exactly sure how you are going to pull it off because it seems like every corporate lender you have filled out an application at, has responded with a “NO”. Private mortgage lenders are becoming more and more popular in Canada because when all of the banks and other corporate lenders say, “NO”, quite often the private lenders are the heroes of the day because they are the lenders that are saying “YES”.
Who Would Be the Ideal Customer for a Private Mortgage Lender?
Complicated everyday life situations, that involve your credit score being impacted such as, late payments or missing payments altogether, are often one of the biggest reasons why corporate lenders would turn down your application for a mortgage. Or, that you are a self-employed individual and it is, therefore a bit more difficult to verify your sources of income and regularity of that income. Whatever the circumstance, private mortgage lenders can provide effective solutions to meet all of your mortgage needs.
Who are the Private Mortgage Lenders in Canada?
Most often, the private mortgage lenders are individuals or organizations who want to make an investment so that they can make money off the property that the mortgage is for. They usually will lend money to a client with hopes in getting a return on their investment(ROI), with the property itself as the collateral for the loan amount. They usually have a preference for providing loans to commercial or residential mortgage applicants. Quite often they also have the preference to only do lending in their own residential area. They prefer to keep their money close to them, and as a private mortgage lender, they definitely have the right to choose exactly where and to whom they want to assist with the mortgage applications.
What types of things matter most on a mortgage application?
When you are filling out an application for a mortgage with a private lender in Canada, it is vitally important to get your facts accurate and to be 100% honest with them during the process. They are, after all, trying to help you. They will want to know things like your basic contact information, employment status, and annual income amounts. They will inquire about the length of your employment and usually, they ask you if you are currently in debt with any other lenders. If you are in debt, they usually want to know the amounts that you owe, because they want to have assurance, that you will be able to maintain your responsibilities and make your payments punctually. Private mortgage lenders try to assess each case individually, as if each application was an opportunity for investment, for them.
What would be the difference between Corporate Lenders and Private Lenders?
There are many differences between corporate lenders and private lenders in Canada. To start off, private lenders usually make their terms for a shorter period of time as opposed to corporate lenders that usually lend for longer periods of time. Also, the interest rates for private lenders are usually higher than those of corporate lenders. Finally, the private lenders can complete the application process in a couple of days as opposed to the corporate lenders that usually takes about 2-4 weeks time.