When you’re looking for alternative financing, you may think about private mortgages; when you choose us for your Toronto mortgage broker, you’ll be able to find the best private mortgage investor. Before we talk about who private investors are, let’s talk a bit about what a private mortgage is. Instead of going to a bank to get your financing, an individual or private company will give it to you. You’ll be legally obligated to repay who holds the note (the lender) within a certain amount of time.
Why do Private Mortgage Investors Lend?
These people lend money as an investment; when you give someone money to buy a home they’ll pay on time. It’s a good way for the borrower to get the financing and a great way to ensure a regular revenue stream for the investor. They’ll be able to lend out more money and with less restrictions than you would find with a more conventional mortgage lender.
One of the most important things you need to know about these kinds of lenders is that they use interest (also known as points) to make the most profit; they may end up charging you more in interest than a bank could ever dream of. You’re going to want to be careful about the terms of the agreement as well! Your loan may start off at a low rate but it could balloon at any time. We’ll help you understand the terms offered to you so you make the right choice for your unique situation.
What are the Advantages of a Private Mortgage?
When you apply for a traditional or conventional mortgage, you may run into problems. Everyone has problems with credit at some point in their lives, and it can be easy to overlook things that can really affect your credit. The “average” FICO or credit score is 600. If you stray too far from this number (lower 500s for example) you can pay a penalty of extra interest or wind up being rejected completely from the mortgage process.
Instead of hoping you get the mortgage you need to buy or refinance your home, a private mortgage may be the right choice for you. These have less stringent credit considerations, and the private investors who back them are looking at long term income. They’ll examine you to see if you’re a profitable borrower or not. You’ll need to prove that you have a regular income and employment (we can help in this situation), but beyond that collateral in your home will serve in the place of good credit.
Finding private mortgage lenders can be difficult, and you’ll need a Toronto mortgage broker who knows what they’re doing. Our brokers are networked and experienced; we’ll help pair you with the right lender for your unique borrowing situation. We’ll apply for both private and conventional mortgages, maximising your chances for success. Your home is your greatest asset, don’t just let anyone handle it for you!
Visit our private mortgage page today, to learn more about how we can help you: http://www.homebasemortgages.ca/private-mortgages/