Private Mortgages for Pickering Homeowners
Pickering is a
vibrant community of over 90,000 that has a great deal to offer its residents,
from high quality education to excellent health care facilities; from
business opportunities to cultural events. The city is expected to continue to
grow rapidly, and the projected population for 2031 is 190,000! If you own a
home in Pickering, you possess an important asset. But some Pickering citizens
have had difficulty accessing funds based on their home equity. Traditional
lending institutions have stringent regulations in place, and if your numbers
don’t add up, you may find that your application to the bank will be stamped
"Refused.” However, there are alternatives to the big banks. If you need cash
flow to pay down debt, finance a child’s education or for an investment
opportunity, you may want to consult with a private mortgage broker. These
licensed professionals work with private lenders in Ontario to create
customized private mortgages in Pickering.
When the Bank Says No
There are various reasons why you might want to turn
to a private lender. Banks are risk-averse, and many different factors can
increase your risk factor for conventional financial institutions. You may have
had to declare bankruptcy or undergo debt consolidation, for example, or you
may be currently in arrears with tax bills or mortgage payments. Even being
self-employed can work against you, since banks don’t like the unpredictability
of self-employment income. Due to regulations in place, bank personnel may not
be able to approve your application even though you have significant home
If you are in this situation, it’s time to consult
with a good private mortgage broker. A private mortgage broker specializes in
putting a borrower together with a lender so that both can benefit. Private
mortgage brokers must complete training and an apprenticeship, as well
as a licensing exam. Most are very knowledgeable and able to make solid
recommendations for your financial future.
Private lenders are not bound by the same types of
requirements that banks are and can look at each case on an individual basis. A
private lender is more flexible and therefore more able to take a chance on the
person and the property under consideration than a bank employee is. In addition,
private mortgages usually happen more quickly than traditional mortgages.
Private lenders have smaller pools of money, so they don’t like it to be idle.
A private mortgage is often approved within 48 hours and funded within two to
Points to Consider
Because a private lender is taking a risk that a bank
is not willing to take, private mortgage interest rates are almost always
higher. However, most times, they’re only slightly higher, and occasionally
they are equal or lower to what a bank would offer. However, private mortgages
often have a regular processing fee as well.
And, unlike their bank counterparts, private mortgages
are usually short-term arrangements. Usual time periods are one to three year
Your private mortgage broker will
work with you to find the right lender and to negotiate terms that are
agreeable to both sides. Contact a broker today and find out more about how to
get the money you need!