PRIVATE MORTGAGES
When do you need a Private Mortgage from an institution or private lender?
The mortgage market in Toronto and the GTA has two categories, prime and sub-prime. When the banks and prime lenders decline a mortgage application, it falls into a new category called sub-prime. This is a category where private mortgage lenders will allow borrowers to be approved based on less strict guidelines.
Generally, they lend up to 80% of your property value or appraised value.
Who are Private Lenders?Â
Private mortgage lenders specialize in mortgages for clients who cannot be approved by banks. They have the flexibility to arrange a mortgage in no time. Employment income and bad credit history is not an issue.
Their decision to lend is purely based on the equity value of the client’s home. They will offer you a short-term mortgage solution (1 to 3 years).
Private Mortgage solutions for:
- Refinance: First and Second Mortgage
- Purchase of a second home
- Debt consolidation
- Construction loans
- Stopping Power of Sale or Foreclosure
- Short Term/Emergency Funds
Details:
Type: 1st and 2nd Mortgages
Rates: 5.99% to 8.99% LTV (Up to 80%* in urban markets and 70%* in rural areas)
Fees: 2% to 3% (based on LTV/Risk)
Amounts: $50K to $1M+
Terms: 3, 6, 12, 24, or Custom Monthly Payments (Prepaid Available)
Rates may vary provincially and are subject to change without notice OAC.
Residential:
1st Mortgages (up to 80% of the value of the house):
Rates: 4.25% – 7.99% (1 to 2 years)
2nd Mortgages:
Rates: 9.99% – 10.75% (1 to 2 years)
Commercial:
1st Mortgages (up to 80% of the value of the building):
Rates: 7.99% – 9.9%% (1 to 2 years)
2nd Mortgages:
Rates: 11.9% – 13.9% (1 to 2 years)
Qualifications:
- No minimum beacon score
- Rates and fees are subject to credit, income, and property conditions
- Borrower must provide evidence of reasonable historical income
Rates may vary provincially and are subject to change without notice OAC.