In addition to institutional mortgage lenders such as chartered banks and credit unions, CityCan Financial has access to over $100 Million for private mortgage loans through hundreds of private money lenders across Ontario. As an industry leader in private money lending, CityCan Financial can put it’s over 35 years of private mortgage lending experience to work for you. We do private 2nd mortgages up to an industry leading 90% of your homes value.
Whether you are a mortgage broker, or a home owner in need of a private mortgage loan, CityCan Financial knows what it takes to find the money for you. We have private money lenders for both first and second mortgage loans.
WHY A PRIVATE MORTGAGE LOAN?
A private mortgage loan is for homeowners that are facing challenging financial times and are in need of money fast. It may be to stop foreclosure or power of sale, pay back taxes, or for debt consolidation.
HOW A PRIVATE MORTGAGE LOAN WORKS
The most important factor in getting a private mortgage loan approved is the equity you have in your home. The home equity is simply the market value of your home less the amount owed on your first mortgage. An appraisal will be required to determine the market value of your home. If you currently have a second mortgage on your home as well, then both mortgages have to be subtracted from the market value to determine your equity. For example, if the market value of your house is $300,000 and you owe $150,000 on your first mortgage, and $30,000 on your second mortgage, then your home equity is $120,000 ($300,000 – $150,000 – $30,000 = $120,000)
As home equity is the key factor in getting a private mortgage loanapproved,bad credit is typically not a problem for us. Other key factors are the location, type of property, over all condition of the property, and your employment. While we are able to place private mortgages across Ontario, most of our private money lenders are located within the Greater Toronto Area, which makes the GTA our primary lending area for arranging private mortgage loans in Canada.
The private mortgage interest rate is typically higher than it would be with a qualified loan due to the higher risk involved for the private money lender. The interest rates can vary from loan to loan, so it is best to contact a CityCan Financial Toronto mortgage broker for more information, and to see if private money is available for your property.
SOURCES FOR PRIVATE MORTGAGE LOANS
So where does all this private mortgage money come from? Our private money lenders are people who have done quite well for themselves financially and are looking for ways to diversify their investments. If you are interested in investing in private mortgages, please contact a CityCan Financial Toronto mortgage broker to find out how you can get involved.
As private mortgages are unqualified loans, there are additional fees involved. In addition to your typical legal fees and the appraisal, there are broker fees and in some cases lender fees as well. Private mortgage loans are all unique situations and the amount of the fees can vary from one private loan to the next. It is best to ask for a bit more than what you need to ensure you have enough to cover fees upon closing of the private mortgage loan.
It is best to contact your CityCan Financial Toronto mortgage broker to find out more about what is involved in getting a private mortgage approved and how much it is going to cost. The fees are deducted from the private mortgage advance and there are no broker fees charged if the approval is not given.