Finding Mortgage Loans in Ontario
If you live in Toronto or Ottawa, and you’re ready to leave your apartment behind and purchase a house, you’re probably one of many people shopping for mortgage loans in Ontario. Amansad Financial has served clients all over the province, from Kitchener, Vaughan and Brampton, to London, Hamilton and even the two metropolises of the region.
What does it take to get consideration for mortgage loans in Ontario
It starts with three digits: your credit score. Banks look at your track record of making payments on your other obligations, such as car payments, credit cards and utility bills, when they consider granting you a mortgage. If you’re applying with a bank or other traditional lender, they’ll want you to have a high credit score and at least several months of steady income from one employer at a level that fits your mortgage payment into your budget within their guidelines for debt-to-income ratio. If your credit is slightly lower than the “excellent” range, you can often still qualify for mortgage loans in Ontario from these sources, but you’ll pay interest rates that are a little higher than the blue-chip borrowers who come in the door.
Not every client in Ontario looking for a mortgage has credit that is even “excellent” or “good,” though. Amansad Financial has connections with lenders who serve people in virtually all tiers of the credit market, so if the banks you are visiting are turning you down or offering you interest rates that you consider unreasonable, then you should give us a call. We have linked our borrowers with lenders on two different tiers: the “Alt-A” or “B” lenders, and the private lenders. The “Alt-A” or “B” sources work with clients who are just outside the range with which traditional banks will deal. While there are some guidelines that banks use in terms of credit score and income verification, if one bank turns you down, it’s still a good idea to knock on the door of a couple of other “A” lenders. Banks are hurting right now for mortgage revenues because turning so many people down, so if you’re very close to an “A” loan, shop it around, and you might find a bank that will work with you. That’s something that Amansad Financial can do for you as well.
The second tier of lenders for mortgage loans in Ontario can’t serve everyone either, though, which is why Amansad Financial has built connections with private lending sources. If you take out a first mortgage loan from one of these companies or individuals, expect to pay between 6% or greater plus applicable fees for the term of your loan — but also expect a short term, no more than a year or two. If you simply require a second mortgage to top you up, the rates will start at approximately 10% plus applicable fees. That gives you time to get your credit ready for an application with one of the higher tiers.
If you’re a little confused as to how to begin, start by giving us a call. Our mortgage specialists will help you find the best financing for your real estate purchase in Ontario. We look forward to working with you!