Apply Online in 60 SECONDS & GET APPROVED NOW!

Refinancing Mortgages in Brampton with a Private Mortgage

Back to Home

Private Mortgages and Refinancing Mortgages in Brampton

 
Homeowners often opt for private mortgage loans since they don't have to pay the mortgage principal down, and instead just have monthly payments on the interest. Private lenders can offer plans to borrowers that don't meet the strict criteria employed by banks and conventional lenders. This often cuts out potential borrowers from getting a loan even if they are more than capable of paying that loan back. One of the primary differences in how private lenders evaluate assets is they mostly base their decisions off the property's total value and market value versus the homeowner's credit report.
 

Why Go Private?

 
Private mortgage loans are used for many reasons. A lot of private mortgages are taken when a borrower needs a short-term loan since processing and financing usually takes between two to three weeks. Sometimes a borrower is looking to purchase an unconventional asset that most traditional banks and lenders will not finance. Other times, it can be a bad credit report that causes banks to turn down refinancing applications. Another reason is that some borrowers have non-confirmable income that stops banks from approving loans.
 

Characteristics of a Private Mortgage

 
The interest rates of a private mortgage often vary between 10%–18%. They are often used as a last resort for those with bad credit history. Private mortgages can have extra costs so be sure to speak to your Broker or agent to get an idea of what these could be. Such fees can often be financed under the mortgage loan. The terms can last somewhere between one to 35 years. There are three types of private mortgage lenders: individuals, syndicate, and mortgage investment corporations. Individual private mortgages have the means to lend funds and make personal profit. Syndicate private mortgages are a collective group of investors who pool together funds for loans. Mortgage investment corporations (MIC) are made up of provincially licensed and registered real estate agents and mortgage brokers in Brampton.
 

What Private Lenders Look For

 
Private mortgage lenders require specific criteria for loan approval because of the risk involved in case borrowers default on their mortgage. To private lenders, the most crucial component in meeting the criteria is the property type and value. The mortgaged property will be appraised and must be in good condition in order to gain approval. The lenders will also want to know that the borrower has the ability to repay the mortgage. Altogether, when planning on taking out a mortgage or refinancing mortgages in Brampton, borrowers with unique endeavors, assets, and incomes should not overlook private mortgages. 

Reviews

4 member reviews
    By Mark
    Thank you Canadalend for helping me with mortgage approval advice.
    so hellpful with their responses to mortgage related questions
    The Canadalend team helped me when I had no where else to turn. Thank you so much
    By Flux
    Very Helpful financing and lending information!
featured_on
Powered by RWARDZ