Private Mortgages Help Mississauga Homeowners
There are many reasons why you
might want to use the equity in your home. Perhaps you have a daughter
graduating from high school and you need funds to send her off to university.
Maybe you’re getting married and want to host an elegant destination wedding.
You might need increased cash flow to renovate your home, buy a car, invest in
more property or pay down debt. Or perhaps you want to refinance in order to
take advantage of better interest rates and save some money. Whatever your
reason for refinancing your Mississauga home, be sure to consider the option of
the private mortgage.
Why a Private Mortgage?
The vast majority of mortgages in
Canada are held by one of our major banks. Toronto Dominion, Scotiabank,
Canadian Imperial Bank of Commerce and the Royal Bank hold most of the
mortgages in the country. However, private mortgage lenders are also an
integral part of the financial landscape. Here are two of the main reasons why
you might want to consider a private mortgage for your Mississauga home:
Getting approval for bank refinancing can take a long time. If
you need money quickly, a private lender’s process can be much less
Banks have stringent criteria in place for lending. Many
homeowners fail to meet these standards, and there is little flexibility
allowed: you must meet the criteria or your application will be denied. If you
have a bad credit
rating, or are in arrears for taxes, credit cards or mortgage payments,
a bank may very well refuse your request. Private mortgage lenders, however,
have more flexibility and are often willing to assume more risk. They can look
at the whole picture and decide to lend money based on how much equity is in
A private lender funds based on
people and property, rather than numbers and reports. If the bank says no,
consider a private mortgage.
In order to apply for a private
mortgage, you’ll need to consult with a private mortgage broker. Most initial
consultations are free of charge. These professionals are trained and have to
pass exams and serve an apprenticeship in order to be licensed. Most have good relationships with funders and expertise in financial
matters. A private mortgage broker will take your portfolio and back story and
match it to prospective Ontario lenders.
There are some aspects to
consider when dealing with private mortgage brokers. Rates are typically higher
than bank rates, for example, although not always. Fees usually range from 1 –
5%, depending on the proposal. Terms usually fall between one to three years.
The approval process is often much faster than with a traditional institution,
but it can take as long as two weeks. Funding is generally available within
three weeks of approval. Look for a company that has a good track record and
that is willing to work with you to customize a mortgage plan.
Get the cash flow you need, when
you need it – talk to a private mortgage broker today.