61 Sharer Rd, Woodbridge, ON L4L 8Z3
Shawn Sef – Mortgage Agent – Lic #M19002267 – Mortgage Associates Ontario Inc. Brokerage Lic #12340

WHEN MIGHT YOU NEED A PRIVATE MORTGAGE IN ONTARIO?

Why would I need to get a Private Mortgage?

Securing a loan to buy a new house or to Refinance your existing Mortgage can be a stressful affair. Lately, banks have become too stringent with their underwritten rules leading thousands of prospective homeowners in a fix. With Canadian banks getting stricter with their loan-approval processes, many borrowers are moving to Private Mortgage lenders in Ontario. So, if you are thinking of buying a home or Refinancing your existing Mortgage loan and your bank has turned you away because of adverse credit history, Private Lenders in Ontario are a perfect option for you.

Private Mortgage in OntarioPrivate Lenders in Ontario open a host of opportunities for those who need a Self-Employed Mortgage or require approval based on bad credit. Flexible financing rules and guidelines set by Mortgage Lenders help borrowers purchase their dream homes or Refinance the property they already own.

What is Private Mortgage?

As a potential borrower, you have banks and other conventional lenders, such as banks, credit unions, and trust companies to lend you the money you need to buy your dream house. But when you find it quite challenging to secure a Mortgage with a traditional lender, A Private Mortgage comes to your rescue. Your low/no income should never be the reason for crushing your home buying ambition. Mortgage Agents in Ontario are generally the third-party lenders who help you secure a loan when you are turned off by conventional lenders.

Private Mortgages come with additional lender and broker fees to compensate for the additional risk that the lender takes. While a Mortgage broker working on behalf of a bank will never charge a brokerage fee from the broker, the Private Mortgage often comes with a Mortgage fee when the loan is secured by a Private Lender. Banks often pay a commission directly to the Mortgage Broker whereas Private Lenders do not. 

Who Needs a Private Mortgage?

Private Mortgages are often considered as the last resort for those who are in dire need of getting a loan but are facing difficulties in getting their mortgage applications approved by traditional lenders. It might be your low credit score or hardship in proving your income or its source that is keeping you from buying that dream home of yours. Private Mortgage Lenders in Toronto have gained popularity for rescuing potential homebuyers who have been rejected by banks and need money at an expedited rate to get that home possession.

Who Needs a Private Mortgage?

Private Mortgages are often considered as the last resort for those who are in dire need of obtaining a loan but are facing difficulties in getting their Mortgage applications approved by traditional lenders. It might be your low credit score or hardship in proving your income or its source that is keeping you from buying that dream home of yours. Private Mortgage Lenders in Ontario have gained popularity for rescuing potential homebuyers who have been rejected by banks and need money at an expedited rate to get that home possession.

Private Mortgages in Ontario are Ideal For:

  • People with a bad credit history or without a credit history.
  • Bankruptcy declared Canadian nationals or individuals who have recently signed a consumer proposal with their creditors.
  • Self-employed individuals who face troubles in proving their income and its source.
  • People who cannot get their own homes refinanced.

Private Mortgage: Advantages

Though Private Mortgages often come with high-interest rates, there is still a sharp rise in the number of Canadian reaching out to Mortgage Brokers in Ontario to fulfill their home buying aspirations. Here is a list of reasons why there is a huge shift in the number of people opting for Private Mortgages in Ontario. 

  • Easy Approval, Quick Turn-Around-Time
    Private Mortgages for one are faster and easier to be approved. Traditional lenders often follow a tedious, stagnant underwriting process that involves perpetual documentation and background checks. As a part of their due-diligence course, most banks that borrowers reach out to often perform credit checks, verifying proof of income, debt obligations, approvals and so much more. Private lenders help a borrower cut the chase. They follow a simplified yet detailed approval process to ensure that you get a customized loan while following a facilitated and expedited Mortgage financing by getting rid of as many barriers and hurdles as possible. They do not dig deep and waste no time revolving around endless processes and paperwork. Instead, Mortgage Brokers in Ontario request only the basic information needed to make a thoughtful lending accord. As the time for approval, money processing, and fun dispersal is curtailed significantly, leading Private Lenders in Toronto to come out as better financers.
  • Effortless Qualification Criteria and Process
    Canadian banks and most traditional lenders have to follow rigorous guidelines to accept Mortgage Applications and then approve them accordingly. These guidelines clearly detail out how borrowers who are considered low risk are mandated to be disqualified from getting a loan dispersed. Private Mortgage Agents in Toronto, on the other hand, follow a fundamentally different approach than conventional lenders. They adopt a more holistic approval approach to assess risks associated with a borrower with bad credit history. Mortgage Agents in Ontario will tell you how most Private Lenders ignore the narrow standards with respect to credit history. Instead, they focus on property value as the prime factor in their loan approval process along with considering the borrower’s capital and belongings, income, and the comprehensive ability to pay back the Mortgage.
  • Stress Test Is Not Needed
    Since 2018, all Canadian homebuyers are subjected to undertake a mortgage stress test. A stress test in the Mortgage financing world means that banks are required to check whether borrowers can still make their payments at a higher rate than what they actually pay. It is the process that enables traditional lenders to appraise the viable affordability of a loan to a buyer. As the approval process for Private Mortgages in Ontario doesn’t abide by the conventional lender guidelines, borrowers aren’t asked to clear the stress test to get their loan approved.
  • Flexible Solutions and Great Interest Rates
    Private Lenders in Ontario have comparative regulatory freedom that allows them to offer highly flexible Mortgage solutions to borrowers that can be customized to meet their specific requirements. Contrary to conventional lenders, private lenders can afford to offer loans at a range of interests other than a single set rate. They also enjoy the liberty to finance unconventional real estate, which Canadian banks and other lenders cannot do. They can finance under construction properties too. Private Mortgage Agents also help you in finding lenders that facilitate the demand for shorter loan periods. As these Private Mortgage Lenders provide a highly efficient alternative to big banks and credit unions, they often incentivize borrowers with competitive terms.

Looking for a trustworthy, reliable, quick, and easily approved Private Mortgage Agent in Ontario? If so, Contact us! We will help you in finding the most reliable Private lenders/investors located all across the province of Ontario who will assist you in securing a tailored Private Mortgage at the lowest/best possible interest rates available. Feel free to try our Private Mortgage services and we will exceed your expectations.