Private Mortgage Lender in Hamilton, Ontario

Private Mortgage Lender in Hamilton, Ontario

A private mortgage lender in Hamilton, Ontario may be the solution you’re looking for. You’ve heard the familiar story for self-employed people. They want to own their own home in Hamilton, Ontario, but the banks keep turning them down. A recent survey suggested more than half of the people who don’t own homes have lost hope in ever buying one.

Many others who do own homes need to refinance after the pandemic lockdowns. The good news is, some private lenders help people like these every day.

So whether you have a low income, you want to refinance, or there’s another obstacle keeping you from your dream, there is help. Keep reading to find out about private mortgage advantages and how you can benefit.

What Is a Private Lender?

Mortgage financing has become more diverse from the traditional mortgages of the past. But, banking institutions were once the only source for a home mortgage. Yet, the strict rules held by banking lenders shut out many who tried to get mortgages.

Private lenders are people or a group of people willing to take on risks to provide funds. For example, with an Ontario home mortgage, lenders look at the borrower’s history. However, they must show the ability to make regular payments on the loan.

Then, the loan-to-value ratio determines the risk of investment. If there is enough home equity, lenders feel assured of getting their investment back. In addition, a good loan-to-value ratio helps when refinancing with private mortgages. 

Private Mortgage Advantages

The home buyer stress test is often the most challenging part of getting approved for a mortgage. So, by going to private lenders, self-employed individuals can bypass this process. In addition, approvals happen faster since private mortgages look at your ability to make payments.

One of the most significant private mortgage benefits is combining other loans. Self-employed people can get a fresh start by joining debts into one payment.

If you want to use your home equity to renovate or improve your home, a private mortgage can provide those funds. Again, as long as the loan-to-value ratio meets the private lenders’ criteria, you can get the needed money in a few days.

There are other scenarios where private mortgages work better because they are faster. For example, let’s say you sold a house, but there’s a delay in closing on a new property. Traditional mortgages make it challenging to bridge loans for a short time.

With quick access to approval, you can get a bridge loan to carry both homes until the sales get closed. In addition, there’s much less paperwork involved with this sort of mortgage financing.

The best thing to know for many people is that there are other options. A private mortgage benefits both sides. For example, investors get a reasonable rate of return and security. And borrowers get a more straightforward method for obtaining an Ontario home mortgage.

How Do I Get a Mortgage in Hamilton, Ontario?

If you are a self-employed person, you know how difficult it is to get an Ontario home mortgage. However, with the private mortgage advantages, you have a chance to protect your investments. In addition, unlike traditional mortgages, you will need fewer pieces of information to get started.

Work with an experienced mortgage broker to present your best financial footprint. First, if you’re a homeowner in Hamilton, Ontario, show the equity you have in your home. Then, add any other valuable assets to your presentation, like cars or other properties.

If you are self-employed or own a business, show documents for the last year of operation. If you have more history in your business, all the better.

Also, give your broker a list of clients and business contracts to show your business is booming. If you have business equipment, show them as assets. It is also essential to explain your business to help a private lender understand how it works.

Even with bad credit or low income, show statements of your history for making payments. Mortgage financing for consolidating debts reflects your ability to make that single payment. Also, if you can show your broker regular income, you have a better chance of getting approved.

Learn more by studying sub-prime lending options before you apply. Then, with a higher rate, you still have an opportunity to get mortgage financing.

The Positives for Private Lenders

Remember that private lenders are in the business of helping individuals. These are individuals or groups who are willing to take on risks. But, that doesn’t mean your loan rates have to be much higher.

Another thing to keep in mind is the market today. As a big city, in Hamilton, Ontario, home values have increased over the last few years. Rising home values is a trend that is likely to continue.

So, in most circumstances, private mortgage benefits lead to a better financial future. As the value of your home rises, so does your home equity. Therefore, the loan-to-value ratio is important to keep in mind when considering the term of your mortgage financing.

Short-term private mortgages can bring your financial picture into focus sooner. The key is to get approved to enjoy the private mortgage advantages. So, don’t be afraid to put all your concerns forward first.

If you have debt or bad credit, talk with a mortgage broker about easing your burden with one payment. Also, get an appraisal for the property in question. A home appraisal helps private lenders and traditional mortgage providers understand its value.

Making a Fresh Start

Getting a new lease on your financial life is only a few steps away. Owning a home in Hamilton, Ontario, can be more than a far-off dream. The first step is to evaluate your situation.

Take into account all your personal history for getting mortgage financing. Then, speak with a professional who can help you realize the goal of an Ontario home mortgage. Private mortgages offer a different approach than traditional mortgages.

So, use them to your advantage and contact us today for a consultation.

David Cumberbatch