If you require a Private Mortgage Lenders In Ontario, look no further, as Expert Mortgage has one of Ontario’s largest Private Mortgage Lenders network in Canada with over 400+ lenders to assist with your financing needs. Many reputable individuals do not qualify under the government’s recent implementation of the stress test that in some cases can be punitive against qualifying for a mortgage at a banking institution. We are experts at finding solutions for hard to place second mortgages and any assistance in finding a Private Lender. In any event, we will go over all of your options to ensure we find you the most suitable solution in meeting your private mortgage needs.
To define what Private mortgage lenders do, we would have to start by stating these are essentially businesses and people who lend their own funds to individuals needing mortgage financing. This category contains Mortgage Investment Corporations, which pool capital from private individual investors to finance syndicated mortgages. Because private lenders typically will not and do not take public deposits, they are independent of any control by the federal or provincial governments.
Private mortgages, in most cases are often shorter in duration and carry higher interest rates and costs than conventional mortgages. They are intended to be a short term solution before returning to conventional mortgage lenders.
In the event your credit score is lower than 650, you will almost certainly require the assistance of a private lender. Mortgage lenders can examine your credit score to determine your financial health, which can affect whether you are approved for a mortgage. Making on-time payments, maintaining a low credit use rate, carrying a low (or no) balance on credit/debit cards, and maintaining a long credit history all contribute to an increase in your credit score. It is imperative to work with a private mortgage broker who understands your situation in its entirety to make suitable recommendations. The top private mortgage lenders in Canada do exist in the GTA and can be accessed with the help of your broker.
*We can assist* – where CMHC mortgage insurance requires a minimum credit score. Due to the fact that the majority of subprime Lenders deal with insured mortgages, being unable to qualify for a CMHC insured mortgage automatically disqualifies you from many B Lenders. Additionally, lenders may ask that you acquire mortgage insurance even if your down payment exceeds 20%.
We have been in the private mortgage lending arena for decades and have had the good fortune of knowing the best private lenders in on Ontario, and what makes them a good choice for our client base. Over the years, we have seen multiple lenders come and go and a few have stood the test of time where great rates and fair terms are applicable. Relax and let us analyze your unique circumstance and find you the best private mortgage lenders Ontario has to offer.
Private mortgage lenders assist traditional lenders in filling the void left in the marketplace where folks are unable to qualify for a conventional mortgage. Individuals with a limited credit history in Canada, such as new citizens, may encounter obstacles when seeking mortgage approval from banks.
Newcomers to Canada
Due to the fact that Equifax and TransUnion collect credit information only in Canada, individuals with non-Canadian credit history may have to start over. Certain lenders may make exceptions. Additionally, newcomers to Canada may have a limited employment history in Canada. For new Canadians without at least 2 consecutive years of employment history, most banks requires a minimum 35% down payment. Additionally, the bank would ask for written confirmation from the mortgage applicant’s primary bank.
Individuals with Self-Employed/Inconsistent Income
Banks frequently require applicants to provide 2 to three years of employment history to demonstrate a stable source of income. Obtaining a self-employed mortgage can be difficult, particularly if your income is inconsistent and fluctuates significantly. This is especially true for those who earn their living through commission and/or tips, which in many cases are not declared.
Individuals with Foreign Earnings Foreign income might make qualifying for a mortgage more difficult, particularly if it is not easily verifiable or recognized. However, there are exceptions. Some bank allow foreign clients to make a down payment of about thirty five percent to qualify for a mortgage, according to a report issued a few years back. Certain smaller banks have voiced in and it was discovered to require verification of foreign income sources for loans with a down payment of less than fifty percent on the mortgage being taken out – ridiculous to say the least.
Private mortgage lenders are a viable alternative to common A lenders, like Canada’s chartered banks, and some credit unions. In Canada, banks are regulated by the federal government and are required to conduct a mortgage stress test to determine whether you can afford your mortgage payments if interest rates rise.
While not required, certain provincially regulated institutions, like credit unions, perform a mortgage stress test as well. What happens if you do not qualify under the stress test guidelines? The lender will refuse to lend to you even if you meet all other stipulations, such as credit score. Most Private mortgage lenders will not make use of a mortgage stress test and may be a viable option if you need no hassle financing.
Certain Subprime Lenders, are semi-regulated lenders that are not directly regulated by the federal government but are subject to regulations indirectly as a result of the nature of their business. Private mortgage lenders and B Lenders are not required to conduct a mortgage stress test and are subject to fewer lending restrictions than A Lenders.
Subprime B Lenders, who are typically larger financial institutions, specialize in insured mortgages. This means that the loan-to-value (LTV) ratio would be greater than eight percent, as the down payment would be less than twenty percent. CMHC mortgage insurance has specific eligibility requirements, including a minimum credit score, a maximum purchase price, and a maximum amortization period. There are other options than CMHC mortgage insurance that include private mortgage insurance providers such as Canada Guaranty and Sagen.
The three most common types of private lenders are as follows:
Individual lenders: are those who invest their own money in private lending.
Syndicate investors: A syndicate mortgage is one in which a group of investors pool their personal funds to invest in a single mortgage.
Mortgage investment corporation (MIC): When a group of investors pool their personal funds and make them available to invest in multiple mortgages concurrently, provided the borrowers meet specific loan qualification criteria, this is referred to as a Mortgage Investment Corporation.
Interest rates on a private mortgage are determined by a variety of factors, including the loan amount, the property’s value, and its location. Private mortgage interest rates range from 3.99 percent and up for a private first mortgage and from 5.99 percent and up for a private second mortgage, depending on the lender’s underwriting criteria.
One would think that Individual private investors are typically able to offer better interest rates than a MIC, as a MIC must earn a higher rate of return on their investments while also paying themselves interest. But this not always the case. There are many MICs in the marketplace that are comparable to some B lenders where mortgage interest rates are concerned. Do call us to discuss your personal circumstances in further detail to see if you qualify.
Due to the fact that private lenders typically charge higher interest rates than conventional mortgage lenders, borrowers will seek out private lenders only after being denied by banks and other alternative lenders such as Credit Unions and smaller financial services companies.
Victor Kaushal at Expert Mortgage will ensure that Lenders are vetted for best practices and the fair treatment of our client base with clear terms put in writing in the mortgage funding process. These include:
Expert Mortgage extends a helping hand to homeowners who may be seeking a private mortgage and lenders to address any of the above concerns and other not so common expenditures.
We stand out as one of the very few brokerages that commits to finding you the best rate and terms – and we put it in writing, when no one else will. For a mortgage application – click here
Driving Directions from Toronto Pearson International Airport to Toronto Private Mortgage Lenders – Expert Mortgage : Head northwest toward Britannia Rd E, Turn left onto Britannia Rd E, Turn left onto Convair D, Turn right onto Renforth Dr, Turn left onto the ON-427 ramp and Continue onto ON-427 S, ON-427 S turns slightly right and becomes ON-427 S, Keep left to stay on ON-427 S, Take the Gardiner Expressway exit on the left toward Toronto and Merge onto Gardiner Expy E then Take exit 149 for Lake Shore Blvd/Jameson Av and Keep right and merge onto Lake Shore Blvd WParts of this road may be closed at certain times or day, Turn left onto Strachan AveParts of this road may be closed at certain times or days and Turn left onto E Liberty StDestination will be on the left
Directions from Casa Loma to Toronto Private Mortgage Lenders – Expert Mortgage : Head west toward Austin Terrace, Turn right toward Austin Terrace, Turn left onto Austin Terrace, Austin Terrace turns slightly left and becomes Walmer Rd, Continue onto Kendal Ave, Turn right onto Bridgman Ave, Turn left onto Bathurst St, Turn right onto Queen St W, Turn left onto Strachan Ave, Turn right onto E Liberty St
Directions from Toronto Zoo to Toronto Private Mortgage Lenders – Expert Mortgage : Head south on Zoo Rd, Turn right onto Meadowvale Rd, Take the ramp onto ON-401 W, Keep left to stay on ON-401 W, Take the exit on the left onto Ontario 401 ExpressParts of this road may be closed at certain times or days, Take exit 375 to merge onto Don Valley Pkwy S, Take the Gardiner Expressway West exit, Continue onto Gardiner Expy W, Keep left to stay on Gardiner Expy W, Take exit 153 for Lake Shore Blvd, Merge onto Lake Shore Blvd W, Slight right toward Strachan Ave, Turn right onto Strachan Ave, Turn left onto E Liberty St.
Directions from Distillery District to Toronto Private Mortgage Lenders – Expert Mortgage : Head north toward Mill St, Turn left onto Mill St, Turn left onto Parliament St, Turn right onto Lake Shore Blvd W, Continue straight to stay on Lake Shore Blvd W, Turn right to merge onto Gardiner Expy W, Take exit 153 for Lake Shore Blvd, Merge onto Lake Shore Blvd W, Slight right toward Strachan Ave, Turn right onto Strachan Ave, Turn left onto E Liberty St