Private Mortgages for Waterloo Property Owners

Private Mortgages for Waterloo Property Owners

The Tri-City area of Ontario is one of the most attractive areas for investors. Thriving, well-established communities, such as Kitchener, Waterloo and Cambridge have much to offer. Yet some Waterloo homeowners have felt the effects of the recent economic climate. Many are struggling with high debt-to-disposable income ratios, and, unfortunately, many have been turned down by conventional lending institutions. If you are struggling with a significant debt load or an overdue tax bill, or if you are trying to find funds to send your child to university, you know how financial stress can affect your budget and your peace of mind.

Alternative Lenders

It can come as a real shock when your bank refuses to lend you money based on the equity you have in your home. But banks are held hostage by many different types of regulations designed to minimize risk over the hundreds of thousands of clients they serve. If your situation doesn’t conform to these stringent regulations, bank employees have little flexibility to offer you a loan. You may be refused due to bad credit reports or bankruptcies in your past, current unpaid bills, or simply because your self-employed income is not as predictable as the bank would like.
However, there are other players in the mortgage field. When the bank says "no”, you can turn to a private lender. In order to find the right lender, you’ll have to first contact a private mortgage broker.
Private Mortgage Broker - This professional has to take courses and pass exams, as well as serve an apprenticeship before receiving a license. A private mortgage broker helps you put your proposal together into a package that will be attractive to investors. He or she will assess your needs and match you with a lender. Most private mortgage brokers are knowledgeable individuals who have built strong relationships with various lenders. The broker usually charges a fee for his or her services.
Private Lender - Private lenders range from single individuals to entities that receive their funds from individuals and groups such as MICs or Mortgage Investment Corporations. These lenders tend to focus less on the record of the borrower and more on the condition, location and saleability of the property, as well as the borrower’s amount of equity in the property. This makes them more likely to take a "risk” on a borrower whose credit record may not be perfectly clear.

Private Mortgages

There are several characteristics of private mortgages to be aware of. First, most charge higher interest rates than the bank does for similar loans. However, many rates are comparable. Be sure you are well versed in what the rates are for various loans.
Second, most private mortgages charge processing fees. You may also have to pay legal costs for drawing up the contract, and, if a current appraisal of your property isn’t available, you may have to pay for an assessment.
Third, private mortgages are almost always short-term arrangements, meant to bridge the borrower until bank funding can be obtained. Most terms are for less than three years.
Call a private mortgage broker today and ask for a free consultation. Learn how you can get the funds you need, now!
Level 6 (XP: 2400)
4 years ago
Learn more about the private mortgage options available in Waterloo. Contact a member of the Canadalend team today for more details.


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!