There are so many regulations on Canadian banks that turn people away from them to less regulated private lenders. In Georgetown, most private lenders specialise in providing mortgages that banks turn down. Since they don’t follow the same lending rules as banks do, Georgetown private mortgage lenders may be able to help those that fail to meet the harsh demands by banking institutions. Besides Georgetown, we serve many cities and towns like Ottawa, Hamilton, Markham, London and Vaughan to name but a few.
Mortgages From Private Lenders in Georgetown
Georgetown private lenders regularly offer loans in form of registered mortgages secured against property. Under the Mortgage Act, a private lender has power to sell property upon failure to settle agreed mortgage fees. Lenders in Georgetown can offer loans as little as $20,000 for a one-year term unless the client requests otherwise. In high-risk situations where the borrower has no income or is requesting a second mortgage, the private lenders tend to seek high interest. This is their way of reducing risk considering that real estate is their only way of making profits. The Georgetown real estate market is very attractive owing to comparatively high appreciation rates.
Approval Criteria for Private Lender Mortgages
Market value and existing debt are a private lender’s main concern when deciding on mortgage applications. Banks, on the other hand, are guided by a person’s credit score which leads to rejection of many mortgage applications. Private lenders must calculate the LTV ratio of property to determine eligibility. By dividing the value of all existing mortgages by the home’s current selling price such lenders hope to get a score below 80% so they can approve loans. If for example, a home has $800,000 mortgages and its current selling price is$1,000,000 then its LTV is 80% which means that the lenders can negotiate.
Reasons Why You Might Need a Private Mortgage
Lenders will want to know why you need the loan but don’t fret as they accept simple reasons like;
· Paying off high-interest credit card debt
· Catering to living expenses
· Stopping power of sale
· Paying tuition fees
Private lenders help those who are turned down by banks and luckily we work with a large network to serve more people in Georgetown.
Fast Financing From Private Lenders
Banks follow a strict, often time-consuming process before approving loans. There is no way to shorten this wait for clients who need money as fast as possible. Fortunately, private lenders provide funding as fast as possible to cater to this clientele. You can rely on our network of experienced private lenders who speedily complete the loan approval process in as little as 24 hours.
Information on Lenders in Georgetown Real Estate Market
Georgetown is a community in Halton Hills, Ontario Canada. The larger Ontario real estate market is the subject of much debate. Some cities have managed the exponential growth in real estate prices over the years. Most people prefer private mortgage lenders Georgetown, which has led to more income for the town. This is an attractive area that many people in Ontario like to live.