Bad credit? It happens to the best of us. But even if you have been turned down by your bank, you can probably still get a mortgage by using the equity in your Richmond Hill home.
Tough economic times have left many Ontarians struggling financially. Stats Canada reported that household debt hit record highs in 2014…and at the same time, the major banks brought in more stringent regulations regarding eligibility for loans. However, even if your credit rating is bruised, scarred or battered, a private lender may agree to give you a mortgage.
Contacting a private mortgage broker will set the process in motion. These professionals will help you put together a package that’s attractive to investors. The broker will then find a suitable lender and negotiate terms agreeable to both sides. A private mortgage can be win-win for both borrower and lender!
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What is a
private mortgage? Simply stated, it’s a loan based on the equity a homeowner
has in his/her Richmond Hill house that comes from a private lender. These loans are usually
arranged by a private mortgage broker, a licensed professional who helps the
borrower put an application together, then matches borrower with lender.
Lenders range from single individuals to entities that receive monies from both
individuals and groups like Mortgage Investment Corporations. These lenders
focus less on a particular borrower’s credit history, and more on his/her
property – its value, its condition, its location, and its sales appeal.
Characteristics of Private Mortgages for Bad Credit Mortgage in Richmond Hill
Because
private lenders like to keep capital moving, the process of obtaining a
mortgage is remarkably fast. Some lenders aim to respond to each request within
24 hours. Most times, funds become available within 5 to 10 days. These loans
usually have higher interest rates than bank mortgages, but not always. They
are almost exclusively short-term arrangements, meant to help solve a client’s
financial crisis until more traditional funding can be obtained.
Finding a Broker
The private
mortgage is a very convenient tool for the Richmond Hill homeowner who is experiencing cash
flow difficulties. A private mortgage broker can advise clients about the
options available and help them negotiate an agreement that works for their
situation. You can find brokers by searching the web, asking for
recommendations from friends and family, or even asking your bank for a
referral.