How to Easily Flip Real Estate with a Private Mortgage

Making money from real estate investments takes some real financial know-how. If you don’t have enough money to purchase a property to sell for profit and don’t know where to get funds, then you’ve already failed before you even started, or not!

Gone are the days when the only folks who can flip real estate are those with a lot of extra cash just laying around. If you have a good credit report and some smarts, you can use private mortgages in Ontario to begin a new business in flipping real estate after figuring out how to make money by buying and selling properties. So, where do private mortgages come in?

Using Private Mortgage in Flipping Real Estate

It is usually easy to qualify for a private mortgage as compared to other types of loans. Due to this, someone like you who may have limited funds can have access to what you need as long as you qualify for one.

It should be noted that private mortgage lenders often expect you to pay them within a year or two. This means that getting a private mortgage will be helpful if you’re planning on keeping a property for just a few months while you spruce it up to sell for profit. More so, it is often that it is much easier to deal with private mortgage lenders than regular lenders because regular lenders won’t you transfer a property without being fully paid off. Private mortgage lenders often allow you to modify the terms depending on your needs, making them ideal for flipping property.

Best Practices to Observe

It is important to keep in mind that flipping the best luxury real estate in Oakville isn’t as easy as you would expect if you don’t know what you are doing. If you don’t know what type of home is in demand and you purchase one that no one is interested in, you’ll be stuck with that property for quite some time.

You will also have to consider that you may have to spend a significant amount to get the house to reselling stage, more so that you’d want to get some profit for your trouble. If you end up paying more for repairs and renovations than any mark-up you’ll make, then you can place yourself in a financially bad place.

Make sure that you take actions that will minimise your risks, such as going for relatively cheap properties as opposed to high-end ones. Doing this will give you some elbow room in being able to afford paying off the mortgage should you encounter difficulties in selling the house.

Keep in mind that signing up for any type of mortgage means that you will be taking on financial responsibilities that come with consequences if not handled properly. This is why it is better to take things one step at a time. First, identify a piece of property that you’re confident about being able to flip before getting a private mortgage. Once you’re ready to go for that property, be sure to work with mortgage professionals that can get you in touch with reliable lenders who can give you a private mortgage with an attractive interest rate.

Need help with the above? Contact us at Homebase Mortgages today!

Private Mortgage Lenders are More Flexible

Life is rarely a cookie cutter postcard, and when you want to borrow money private mortgage lenders are going to be there for you. It’s hard to find these people on your own, and you’re going to want to work with the best Toronto mortgage brokers that you can find; this means working with us! We’re here to help you make the most of your situation and to help you find the best lender to work with. Borrowing doesn’t have to be painful, and with us it won’t be.

Why are Private Mortgage Lenders Better?

There are many reasons but it really boils down to what they can offer people of every credit background. You’ll be able to find some that will cater only to those who’ve never borrowed before, while others are there just for people who are searching for home equity loans or second mortgage lenders. Whatever you do, you’re going to have to be able to show that you can repay. It doesn’t matter if your credit is bad, but you will need to be able to repay your mortgage. When you choose us as your Toronto mortgage broker you’ll get someone who knows who to work with.

What Makes Them Different?

Most borrowers want to know why private mortgage lenders will lend to anyone, don’t they have to follow the same rules as banks? Banks and other Canadian conventional mortgage lenders actually have harder criteria because they have a larger pool of investors they’re beholden to. This means they’re going to have to show that they are making a profit, and they won’t be able to loan out as much money if the entire board doesn’t approve. You’re going to want a lender with a smaller pool, one that we as Toronto mortgage brokers can find for you.

You also need to know that they work to make the most interest off of you as possible. Private mortgage lenders do too, but they’re going to be there to have a steady revenue stream. Larger lenders just don’t need this kind of income to make ends meet. They can get by without having to cater to any type of borrower. This is why you want to work with a private mortgage lender, they’ll be there for you when you need someone who can help you save big and someone that is simply more dependable.

Find the Right Lender

If you want to find the right lender, you’re going to need to work with Toronto mortgage brokers… but you don’t want to work with just any broker, you want to work with us. We’ll be here to help you get the right deal for your situation. Everyone is unique and if you want to be able to get the best rate and the best terms, you’re going to need to be paired with the right private mortgage lender. We can help, contact us today and see what we can do for you.

Visit our private mortgage page today, to learn more about how we can help you:

Why You Should Invest as a Private Mortgage Lender

Nothing beats diversification when it comes to building a solid investment portfolio.  Where to find a good investing opportunity then? The stock market is a favourite for many, but it comes with a high level of risk. You’ve also got government backed securities, something that offers little risk but is at the mercy of inflation. Why should it bpm2e a case of choosing the lesser evil when you can have the best of both worlds?

Do you know that private mortgages carry very minimal risks and offers a great ROI? That does sound great, doesn’t it? But if you’re not convinced yet about investing as a private mortgage lender, no need to hire a private investigation agency in Toronto here are 5 reasons why being a private mortgage lender rocks:

Has Better Rates Compared to Banks

Private lenders can charge higher rates than banks, and consequently, can make more money than banks. With so many people having the ability to pay a high down payment but lacks the income verification or credit score to seal a deal with a bank, you won’t run out of buyers, more so if you factor in savvy brokerages who’ll connect you with such people for the benefit of all parties involved.

It Beats Being a Landlord

Being a landlord means having to take care of repairs and maintenance, both of which can get very expensive. Selling the property and acting as a private lender means you still get a steady source of income without having to shell out some cash for future repairs.

Saves You the Hassle of Dealing with Flakers

Buyers behave much better than renters. Why? Because as a private mortgage lender, you’re their lifeline back to better credit. Of course buyers can still present a risk, but if the buyer has put in around 30% down payment, there is actually less risk for you because it shows that buyer has some financial skill.

You Get to Set the Loan Terms

You don’t have to follow fixed rates for 15 to 30 years as a private lender. You can apply adjustable rates as long as the buyer agrees to it. The loan terms and duration can be exactly how you want it to be. Shorter terms means that you can get your investment back sooner so you can move on to more and better investments while longer terms presents you with a more predictable cash flow.

Lending Decision is All Yours

You don’t have to base your lending decision on the borrower. You set your terms and down payment your way. A large down payment means that the risk of default will be a lot less and the likelihood of the borrower falling behind on payments less of a worry too. Even in the case of default, you still can get a healthy profit from of selling the property.

Finding buyers and clients need not be a chore as a private mortgage lender. There are brokers like us that help buyers and clients find private lending sources like possibly you! Have any questions on private lending and how this can work for you? Contact us today!


Why Choose A Private Mortgage Lender?

A loan is always an investment towards something, more so if you’re getting one to help cover for a costly home purchase. This is why getting a loan from a good institution such as a traditional bank is just as important as making the decision to obtain a loan in the first place.

Unfortunately, getting a mortgage is not always easy. You’ll have to look at your current financial situation and choose the best options that offers the best rates and payment terms. Most banks won’t loan to someone with poor credit history, so opting for private mortgage lenders with the help of mortgage brokers becoming more popular. You do have to find mortgage brokers with access to the best terms and rates and who will help you go for a loan that will suit your needs and financial capacity.

A good mortgage broker thinks of your future when matching you up with a private mortgage lender. They do all the leg work and find you great deals that can save you fees. Below are more reasons to why you should try a private mortgage lender.

Your Credit Isn’t Looking Great

If your credit history isn’t very nice, chances are that you will be turned down by banks. Lucky for you, private mortgage lenders can still lend you the financing you need. Private lenders invest in mortgages so they will of course do this for a reasonable profit. Most private mortgages are given to people with an existing home equity, making the private lenders be in second mortgage position.

You Need More Options

Sometimes you simply need more options, such as looking for an agricultural loan or perhaps a construction loan to further develop your property. Private mortgage lenders specifically help for this by working with refutable mortgage brokers who can obtain the best deal for you. If you are looking for a second mortgage, this option is just right for you!

You’re Looking for A Tailor Made Mortgage

Different people have different needs, and you can often find a mortgage that caters to your specific needs from a private lender. Private lenders often offer more flexible payment options that are specific to your situation. To find a good private lender for you, it helps to contact your local team of mortgage brokers to help you with obtaining a loan that’s nearly impossible to get from the bank. Toronto mortgage brokers can approach private lenders for you and work out a loan based on your needs.

Trying to get a private mortgage lender to lend you money on your own can be very challenging. Fortunately, there are professional mortgage brokers who can do the difficult part for you. When you contact Toronto mortgage brokers from our team, you will be helped by an experienced mortgage professional who will work with you to get a loan that’s tailor-made for your needs.  All your borrowing questions will be answered and your private loan application will be given due attention, guaranteed!


Going Private: Mortgages for Millennials

private mortgages in TorontoWith the majority of Millennials coming of child-rearing age, more and more of them are turning to private mortgages to get the money they need to buy a home. But consumer buying habits for this segment of the population is quite different than it was for their parents; they want to be close to mass transport, shops, and they’re not big fans of commuting to and from work. Most analysts say it’s not as bad as it seems for Baby Boomers and their big suburban homes far away from the things that make Millennials hearts go all pitter patter.

Hard to See the Future

When it comes to what you want when you have kids, it’s hard to know until it actually happens. Right now it’s expected that Millennials are going to force a big change in the housing market – and that applies to finance. More and more of them (and us as it happens!) are turning to private mortgage lenders (not to be mistaken for private investigator services), talking to Toronto mortgage brokers like us and getting a real education before they buy.

Among Canadians, Millennials are a more ethnically, financially and idealistically different group than their parents. This group wants a healthy mix before they commit to a home, they don’t want homogenous homes that blend into the landscape. They want communities that matter, not to live in a neighbourhood where they have to worry about how many flamingos they can place on their lawn.

Mortgage Habits are a ‘Changing

Millennials are running on flex schedules, they’re ditching credit cards and when they buy a house they tend to obsessively research every last detail. Mortgages right now account for half of the debt they owe, with $14,000 carried by the average Canadian ages 18 to 34.

What Kind of Mortgage Do You Want?

Once you start thinking about buying a home (even if you’re not a Millennial), you need to know what kind of mortgage is right for you. This all depends on what you need.

If you have a high down payment and expect to repay your mortgage within the next 2-5 years, you may want to look at variable rate mortgages. These will have low interest rates that float with the prime (we’ll explain more of this when you speak with one of our Canada mortgage brokers).

If you don’t have a high down payment or you want to repay your mortgage in 10+ years, you’re going to want to look at fixed rate mortgages. These will give you a longer period of time to repay your mortgage, your interest rate will be fixed and you’ll be able to avoid the worries associated with hiking interest rates over time.

So if you’re a Millennial, you’re going to be worried about trying to get the best deal. You could hunt for the one that’s “right” online, or you could talk to a professional.

What is a Mortgage Broker?

Toronto mortgage brokers like us do all kinds of stuff that helps you get the money you need to buy a home. We can help you understand how your credit is affecting your chances for getting a mortgage. We can help you understand how much you’re going to have to pay over the course of your mortgage if you just go with the minimum monthly payment or if you go with a high down payment.

We’ll be here to help you understand everything you need to know before you take the plunge to get a private mortgage or a conventional mortgage. Don’t do it on your own, let us help you! Also, visit our private mortgage page today, to learn more about how we can help you:

How to Save on Private Mortgages

private mortgagesA private mortgage can be a great way to finance the purchase of a home – even if you don’t have the best credit – but you’re going to want to make sure that you’re getting the best deal. That’s exactly why you’re going to want to work with one of our Toronto mortgage brokers. We’ll be able to help you figure out which lender, which terms and which mortgage overall will be best for you. The lat thing you need to deal with is something that’s a bad fit, so don’t! Let us help you make the most of things.

What is a Private Mortgage?

A private mortgage is like any other kind of mortgage that you can find on the market, but they’re going to be lent out by different kinds of lenders instead of a bank. You’ll be able to borrow even if you have bad credit, this way you’re going to be able to get the money you need. Private mortgage lenders are nowhere near as demanding as a conventional lender can be. Don’t you deserve a way to really get the home you’ve always wanted? Of course you do! That’s why it’s important to make sure that you’ work with one of our Toronto mortgage brokers so you’ll know you’re getting the best deal.

What are the Benefits?

There are many benefits, the easiest to spot are for those of us with less than perfect credit. Conventional lenders will penalize the heck out of you because you don’t have great credit, but who has time and money to deal with that headache? With a private lender you’re going to get the help you need to borrow, and you won’t even have to wait the length of time that you normally would with a conventional mortgage. You shouldn’t have to worry when you’re borrowing money, and with us you’ll be in safe hands.

How do Brokers Help You Save?

If you’re not sure where to start, that’s where we come in. When you choose to work with Toronto mortgage brokers like us you’re going to know all of your options before you decide. Even if you’re not buying a house yet, we can help you get pre-approved by different lenders and find out which ones are the right choices for you. Maybe you need a low interest mortgage; maybe you need enough money to buy a luxury home. Whatever you’re looking for, we can help you save.

Should You Get a Private Mortgage?

Everyone is different and your case is just that, your case. When you talk to one of our Toronto mortgage brokers you’re going to be able to figure out what’s right for you. You may be able to get a great conventional Canadian mortgage and won’t even need to go this route for financing. You’ll never know unless you work with us to find out what’s right for you! Let us help, you deserve to know all your options.

Visit our private mortgage page today, to learn more about how we can help you:

FAQ: Private Mortgages for Bad Credit

Everyone has bad credit at some point in their lives – 80% of Canadians have been behind on their debts in the last 15 years at SOME point. That’s why it’s important to know that even if you have bad credit you can still get a private mortgage that works for you. There are many lenders out there that specialize in your kind of lending, so don’t worry! Here we’re going to go over a few of the most commonly asked questions about these types of mortgages, so let’s get started.

Can Anyone Qualify?

Virtually anyone can get a private mortgage, but depending on your history, credit and employment you’ll get a different interest rate. It’s important to talk to one of our Toronto mortgage brokers to get a look at your credit report and finances before you even think about applying for one.

How Expensive Is It?

It can be expensive if you go about it the wrong way. You want to know that you’re getting the lowest interest rate possible and that you’re getting great terms. This can all go badly if you’re working with the wrong lender – but by working with us we’ll help pair you with a lender that wants to work with you. There are so many different ones out there, let us help!

How Does My Credit Score Affect Me?

If you have bad credit you could end up facing thousands of extra dollars in interest. We’ll be able to advise you on some things you can do to improve your credit score – it’s important that you get a handle on any consumer debt BEFORE you take out a private mortgage.

How Much Will it Cost Me in the Long Term?

This depends on your terms, interest rate and loan amount. We’ll be able to help walk you through projections (like 3% interest over 30 years for $x amount borrowed will equal out y if you pay the minimum payment each month). There are many different mortgage calculators online that will help you do this, but we’ll help you see the big picture.

How Different Are They From Conventional Mortgages?

They’re virtually identical, except a private mortgage is granted by a private lender. You’ll still have a monthly payment, interest, down payments and closing costs to pay when it’s time.

Is it Right for Me?

Now you know everything you need to know to get a private mortgage. They may be right for you, they may not –you’ll never know until you talk to one of our Toronto mortgage brokers! We’ll be able to look over your finances and really break down what you can and can’t expect to get. Everyone will be different though and it’s important that you talk to us before you think about approaching a private lender. Even if you decide to go with a conventional mortgage lender, we’ll be able to work hard on your behalf to get you the best rate!

Visit our private mortgage page today, to learn more about how we can help you:

How to Get a Private Mortgage on Your Credit Report

private mortgagesGetting a private mortgage to show up on your credit report can be hard work! They’re designed in such a way that they often just don’t appear… so it’s up to you to make sure that it does. We as Toronto mortgage brokers can help you do this. If you’re paying off your mortgage each month, those payments count! You want different lenders to see that you have a large account that is in good standing, that your credit report is up to date and accurate. There’s nothing worse than telling a lender you have a mortgage that they can’t find on your credit report. Here we’re going to go over the steps you need ot take to have your Canadian private mortgage on your credit report.

Speak with Your Lender

The first step you need to take is to speak with your private mortgage lender. Even if you worked with a Toronto mortgage broker like us, you’ll still need to contact the lender directly. Tell them that you need your private mortgage reported monthly to the three major credit bureaus (Equifax, Experian, etc.) Most will do this if you ask, but some may not. You will need to push them, but if your lender doesn’t cooperate, that’s okay! You still have ways of getting your private mortgage added to your credit report even if your lender isn’t working with you to make it happen.

Speak with the Credit Bureaus

Speaking with the credit bureaus needs to be done, even if you’ve already spoken with your lender. If your lender agreed to alert the Big Three that you have a mortgage with them, give it a week before you speak with the credit bureaus. Have all of your documentation ready like your balance, who your lender is, your account number, principal information. Basically everything that you have on your bill each month is what the credit bureau is going to need to know to get you listed.

Keep an Eye on Your Credit Report

When you worked with one of our Toronto mortgage brokers to get your private mortgage initially, you most likely had a credit report pulled up. You’re going to need to watch your credit report for the next six months to make sure everything is running smoothly. Every 30 to 45 days your private mortgage lender should be sending information to the reporting agencies and that information should updated on your credit report. It will tell you how much of the principal is owed, how much you’ve paid in the last x amount of months, etc. It’s important that you keep on top of your information.

Many lenders will report once and then never again; make sure you keep an eye on your credit report to know that they’re reporting every month. The more they report, the better your score will be and the more credit you can get in the future!

Need to know more about private mortgages? We can help! We’re experienced Toronto mortgage brokers who know how to get you the best mortgage, contact us today.

Can You Get Private Second Mortgages?

private mortgage lenderIf you want to be able to get a private mortgage as part of a Canadian home refinance, you can. A private mortgage isn’t limited to buying a home out the gate, but you should talk to one of our Toronto mortgage brokers before you get started. You’re going to need the help to make sure you find a good private lender; there are many lenders that make these kind of loans and sadly a good deal of them are terrible to work with. You’ll also need some equity in your home to take out this kind of loan, so let’s get started.

What is Equity?

Equity is how much you actually own in your home when everything is said and done. So whatever debts you hold subtracted from the appraised value of your home will let you know how much equity you have. Here’s a good example:

The house you own is worth $500,000 (one can dream right?), but you still haven’t paid off your mortgage. You owe $100,000 still on your first mortgage, and that means that you have $400,000 in equity. This is great! Only 20% of your equity is tied up with debt, meaning 80% of your home is straight up cash. You will need to know that you can only borrow 80% of what you own; this means that you’re going to be able to borrow up to about $300,000 out of your whole home.

How do Private Lenders Work?

Private lenders will loan money to virtually anybody, which is awesome! Even if you have abd credit you’re still going to be able to get a second mortgage from them. They work just like any other kind of mortgage lender, but where they get their money is a little different. Banks and private lenders both have investors, but private lenders have individuals backing them. Their lending criteria isn’t as strict but you’ll still have to fill out some forms and pledge some of your equity as collateral.

Isn’t This Just a Home Equity Loan?

One of our Toronto mortgage brokers will be able to better explain all of this to you in person, but basically yes. This is a home equity loan. Second mortgages work off how much equity you have in your home and they’ll help you get all the money you need to get things done. You shouldn’t be trapped in a bad situation just because you may have poor credit or no credit. With the right private mortgage lender you’re going to be able to get the money you need.

Working with a Broker Saves You Money

When you work with one of our Toronto mortgage brokers you’re going to save money. We know where to look to get the best mortgages and we’ll help you save. From getting the lowest interest rates to getting the highest loan to value ratio for your next mortgage, we’ll work hard to help you. Contact us today and see what we can do for you.

How to Calculate Private Mortgage Insurance

private mortgagesCalculating private mortgage insurance isn’t nearly as hard as you might think – but it will take a little time to figure out. If you don’t already know, you pay PMI to protect the lender in the case that you default; if you didn’t know, this doesn’t pay you any benefit. You’re basically paying their insurance and hedging your bets against yourself. If you’re paying less than 20% down when you buy a home, you have to have mortgage insurance – there are a few cases where this won’t apply to you, but it’s extremely rare.  Before you buy a home, know how much you’re going to pay!

What’s the Purchase Price?

The first thing you need to figure out is how much the purchase price will be. If you’re not sure which home you’re buying just yet, we’ll go with $250,000 for the sake of easy math. Now that you know what the purchase price is, you’ll be able to figure out the next step in the chain: the loan to value ratio.

What is your Loan to Value Ratio?

Figuring out your loan to value ratio is so important – everyone has a different amount. If you’re borrowing against the equity in a home you already own, like a second mortgage or home equity line of credit, you’re going to see all kinds of LTV ratios. You want the highest LTV available, and for this you’ll want to work with us as your Canada mortgage broker. We’ll be able to help you figure out just how much you can save over the life of your loan. For the sake of easy math, we’re going to go with 90%.

What is Your Loan Term?

If you have a short term mortgage, you’re going to pay more in monthly payments and PMI but you will pay it off faster. If you have a longer loan term you’ll pay less each month to your mortgage and PMI but it’ll be drawn out over time. We’re going to say you have a 25 year term mortgage.

What is your MIR?

Your MIR or Mortgage Insurance Rate is determined by a formula table. We’re just going to guess that you have a .52% rate.

Now it’s time to do the math.

Once you’ve done all this research and figured out all your numbers, it’s time to get to work! You’re going to need to multiple and divide a few things to figure out how much you have to pay.

Let’s first determine how much you’ll pay per annum or year:

$250,000 x .0052 = $1300

Now divide this number by 12 to get your monthly private mortgage insurance:

$1300 / 12 = $108.33

Now you’ll add this along with your projected monthly payment and you know about how much you’ll be paying. Once you reach 80% owed, you’ll be able to stop paying PMI and move on to paying your house down. Give us a call today and see what we can do for you.