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: http://www.homebasemortgages.ca/private-mortgages/