If you plan on moving into Ontario or purchasing an investment property in the province, you may be looking for private mortgage lenders as an alternative to conventional mortgage financing. If you are looking to be an owner-occupier but lack the sort of credit score that you need to qualify for a typical 30-year mortgage, or if you are an investor looking to turn around your loan approval quickly and start working on flipping that investment, a private lender can be the right solution.
Some people use a family member or friend, or perhaps a business associate, as a private lender. In this case, the two parties can negotiate all of the terms of the agreement together without any third party help. Such factors as the term of the loan, the interest rate, and the process of repaying are between the two parties. When the private lender is an individual or organization not familiar with the borrower, things happen a bit differently.
Private Home Loan Lenders In Ontario
First of all, expect to have to repay the loan within six months to a year. A private lender willing to extend terms more than a year or two is particularly rare. Second, expect to pay a higher interest rate than you would with a conventional loan. After all, you’re getting your money sooner, and you represent a bit of a risk to the lender. Even though real estate is one of the more secure tangible assets, the simple fact that you don’t have conventional mortgage financing makes you a bit of a risk in this situation.
Third, make sure that you have read and reviewed the paperwork carefully. If you are unsure about anything in the papers, have an attorney check them out. The money you’ll pay will be well worth the security you will feel.
Amansad Financial has connections with private lenders who can help get you into that home that you’ve always wanted, but there is some information that you must first provide as part of the application process. Openness and candor on your part will speed your application along. If a private lender sounds like the sort of financing that you need to request, at least at this point in your househunting purchase, Amansad Financial can connect you with one with a solid reputation within a matter of hours.