Who are Hard Money Lending Companies?

Hard money lenders are thriving in Canada, and with good reason! But it’s important to make sure that you speak with a Toronto mortgage broker before you start look at a hard money lending solution. Here we’re going to talk about these types of lenders and what hard money lending is. Remember: don’t choose this type of financing before you speak with a professional!

What is Hard Money Lending?

Hard money lending is what is known as “asset based financing”, meaning a piece of property like a home or land is used as collateral. This can be a house you own now that is on the market while you’re trying to buy a new one. These are technically also “bridge loans” or “bridge mortgages”. You’ll be able to borrow up to 70% of the worth of the property. So if you own a property worth $1,000,000 and you want to get a hard money loan against it, you’ll be able to get up to $700,000. But this is only if you have a really good Toronto mortgage broker on your side (like us!) to make sure you’re getting the maximum amount of money for your property.

What Are the Criteria for Hard Money Lending Lenders?

Hard money lending criteria vary depending on what lender you select for your hard money loan. They can use traditional things like your credit score, collateral (how much the property you’re using as collateral is worth), income, employment and a myriad other things. It will really depend on who you approach, but it also depends on who acts as your intermediary. You can always try to find a good hard money lender on your own, but you’re going to need a mortgage broker to help you find the best of the best. No two situations are the same and you’ll need to be paired with a lender who will understand your unique circumstances.

Who are Hard Money Lenders?

Hard money lenders are usually private companies or individuals who provide borrowers with short term loans. They’re known as bridge loans because they typically don’t last very long and need to be repaid in a shorter time than a traditional mortgage; you’d be hard pressed to find a 30 year hard money loan. These kinds of loans are riskier for the lender than a traditional loan, so interest rates may be higher than a mortgage you receive around the same time.

What are Hard Money Loans Used For?

Hard money loans are generally used to “bridge” the gap between traditional financing and the borrowers own money. For example if a borrower has a down payment and a financing from a traditional lender, but can’t afford an extra $12,000 to buy a property until their first home sells, they can get a bridge mortgage or a hard money loan. It’s important to make sure that the hard money lender that you’re dealing with is on the level. Let us help! As Toronto mortgage brokers we have the relationships and knowledge to get you the best hard money loan; contact us today and find out more.

How to Find a Hard Money Lender

Hard money lending is a good way to get money when you can’t find any other type of loan… but is it the right kind of lending for you? If you need money fast, but you don’t have great credit or you can’t get financing from a more traditional lender, this may be the right choice for you. Here we’re going to talk about what hard money lenders are and what they’re not, so you can make the best choice for you. Let’s get started and see what hard money lending is all about!

What is a Hard Money Lender?

A hard money lender is just a lending company that gives out a special type of loan backed by your property. So if you’re going to buy a house while you’re selling one, you can get a hard money loan, also known as a bridge loan, to get enough money to cover a property. They’ll hold a certain amount of equity on your house until you pay off what you’ve borrowed. This is known as collateral.

What Kind of Collateral is Acceptable with Hard Money Lending?

You’ll want to speak with your Toronto mortgage broker (like us!) to find out how this works. For the most part this means you’re going to be using the property you take a loan out on to get the loan. So if you’re buying a property and getting a hard money loan, they will use that property as collateral. If you’re getting a bridge mortgage (another kind of hard money lending) they will use the house that is on the market as the collateral.

Is it Risky?

Hard money loans can be risky if you don’t know what you’re doing. This is why it’s so important to have the right people working on your side to make sure you’re getting the most out of your loan. You’ll want to speak with one of our Toronto mortgage brokers to find the right hard money lender for your needs. There are many different types and some will not be a suitable fit for what you need. Some will only offer money on commercial properties for example, while others will only lend money to people with excellent credit. There are caps on how much interest they can charge (these are generally known as usury laws) to prevent price gouging.

How to Find a Hard Money Lender

Finding a hard money lender is as easy as finding a local Toronto mortgage broker. We’ll help you find the right lender for your circumstances. No two borrowers are alike and no two lenders are either! We’ll help you find the right lender and avoid the wrong ones. We’ll show you comparisons from different lenders who want to work with you and help you choose the right one for your needs. Why settle for a low interest rate when you can get the best terms and the lowest interest rate? Let us help you today!

Get the Money You Need with Hard Money Lending!

hard money lendingIf you need money, but you just can’t find the right lender, hard money lending can help you. You’ll be able to get the money you need to buy a home; navigating the tricky waters of Canadian hard money lending can be difficult, and that’s why you’ll want Toronto mortgage brokers like us on your side. We’ll be able to help you find the right lender that fits with what you need. Remember, just because you have less than perfect credit doesn’t mean you can’t get a great deal on your next mortgage!

What is Hard Money lending?

Hard money lending is basically a short term private loan. They’re meant to be repaid quickly, and they’ll lend to anyone who has an income and a house (like the one you’re buying). You’ll want to make sure you have a smart Toronto mortgage broker on your side to ensure that you’re getting the best possible loan terms. While interest rates are important (the lower the better), you’ll also want to know that you have enough time to repay your loan. There are so many things that can go wrong with this kind of mortgage, so you will want someone on your side that can help you make sure it’s the right type of loan for you.

Can You Benefit from Hard Money Lending?

Almost anyone can, but you’re going to want to make sure that you have no other kind solution. It’s called the lending of last resort for a very good reason; while you can get good terms that will help you bu the home you want, you could end up paying big over the next ten years when you don’t have to. This is why it’s just so important to have a good Toronto mortgage broker like us on your side to help you make sure that this is the right option for you. Hard money lending is there for people who can’t get any other kind of financing; just because you have bad credit doesn’t mean you have to get a raw deal on your mortgage.

Who Offers These Types of Loans?

The main providers of these types of loans are private mortgage lenders. In Canada, they can account for anywhere between 17% and 35% of total lending; they’re the same as any other type of mortgage lender, but you’ll want to make sure that you work only with a reputable private mortgage lender that has a well-known track record. Many private mortgage lenders are hard to find, and when you work with Toronto mortgage brokers like us you’ll have a smart entre into the world of private lending.

It’s important to make sure that you’re getting a great deal! We work for you helping you get a great interest rate and loan terms you can live with; we’ll also make sure that you avoid any lenders that are new or ill-suited for your needs. This will help you make sure that you get a great mortgage at a great rate, hard money lender or else.