Are you looking for Private Mortgage Lenders in Calgary? Amansad Financial has strong relationships with private mortgage lenders in Alberta and all over Canada who are looking to invest money in the real estate market by funding private mortgages. There is no time like now if you are thinking about refinancing your existing mortgage or buying a house. Interest rates have never been lower, however if you are unable to secure bank financing, finding a Private Mortgage Lender is an alternative.
Refinancing Using Private Mortgage Lenders
For many property owners that have built up significant equity in their property, now would be the most ideal time to refinance and clear off any unwanted high interest debt. However, if you don’t meet all the requirements for the bank, you simply cannot refinance. If you’re self-employed, you might have a hard time establishing a solid income history over the past few years. The banks like to see a regular income stream that shows you will be able to continue paying for the mortgage over time, and there are a lot of successful entrepreneurs who can’t get a mortgage approved because they can’t show regular income. Some other business owners make very good money, but simply pay themself very little as a way to reduce taxes. This strategy helps with the taxes, but can reduce your chances of qualifying for a low interest rate mortgage. Depending on your situation, you may need to take a break from your Bank to look at a B Lender or a Private Mortgage for an Equity Take Out Private Mortgage. It’s very common for Business Owners, Commission Based, and Contract workers to take on a Private Mortgage to assist them through non-qualifying periods.
Purchasing with the Help of Private Mortgage Lenders
Obtaining a new mortgage to purchase presents it’s own challenges. If you’re like the majority and don’t have the ability to pay for a new home outright, you are going to need financing to complete that purchase. The most common way to do this is through a bank. You save up enough money for a down payment and then go to the bank and apply for a loan. They take a look at your assets, your income history, and your credit score, and then they determine whether you are worthy of financing. For some people, this works, but for a lot of others, it doesn’t.
Even if you have good credit and income, the down payment can be a hurdle. People sometimes have a hard time saving up enough money to qualify for a conventional mortgage with more than 20% down payment, and then they end up settling for a high ratio loan and pay thousands more in mortgage insurance over the life of a loan.
But even if you have saved up enough money to make a solid down payment, sometimes that isn’t enough for the banks. All aspects of the equation must fit. If anything is out of place and you don’t fit into the bank box, you will need to seek out alternatives or wait.
Other times, people have gone through financial difficulties in the past. Maybe they got laid off from their job, or they had an illness that kept them from working for a while, and so they had to burn through some savings and then some. The bottom line is that they missed some payments on some crucial items, and they may have gotten close to having a car repossessed. In this case, they will have a fairly low credit score, even a few years later — and even after they have had the chance to save up a good amount of money.
Private Mortgage Lenders in Calgary
If this fits you — if you have gone through some rocky credit moments in your past but have saved up enough to make a significant down payment, then you might want to consider finding a private lender to help you buy that house you want in Calgary. You’ll need a down payment of at least 25 percent in most cases if you get in touch with private mortgage lenders.
If you don’t have the required down payment, but are fortunate enough to have ownership in additional real estate in Canada, the need for 25% can be reduced or eliminated by way of an Inter Alia Mortgage. The reason for this is that your credit is not the determining factor for the loan. Instead, it is the value of the house — and the loan to value ratio. If you are purchasing a $300,000 house, and you can put $100,000 down, then you’re only asking to borrow $200,000 from the lender. The lender will run an appraisal, and in the unlikely event that you default, he’ll want to know that you have enough equity in the property so that you can either refinance with a new private lender willing to take on the risk. The Private Lender also needs to protect themself from any unforeseen potential sharp decline in value or potential legal costs if foreclosure action needs to be taken due to ongoing non-payment.
Another important point to remember is that you can count on a private lender to want to get paid out in one to two years. Private Lenders will generally renew provided you have paid well and the market agrees, but they ultimately want to see property owners improve their situation so that they transition to a bank lender. Private Lenders also don’t want to tie up their money that long with the same property owner,, and they don’t have that diversification of risk that the big banks do.
If you’re in the market to refinance or purchase a property in Calgary but have bad credit, mortgage options may seem limited to you. One of the advantages of the Canadian system of mortgages is that if your credit isn’t pristine, you’re not locked into a long-term loan with a high rate. Instead, you pick a mortgage that gets you the short term financing you need so that you can improve in the areas required so that you can move on to a better loan before the end of the term.
So if you have bad credit or think you’ll need a private lender to help you refinance, take out some equity, or even buy that house in Alberta, BC, Saskatchewan, Ontario or Manitoba, contact Amansad Financial. We underwrite mortgage loan applications for Private Mortgage Lender Direct Lending Group and fund quickly. We also have relationships with Industry Partners that can also assist in securing you the right financing. Apply Today or Give Us a Call!