Ontario private mortgage – Important Facts You Need to Know
What is the reason you are looking for a good deal on a mortgage? You might be purchasing your first home or upgrading to a bigger, more suitable home for a growing family. You may be at retirement age and looking for a small residence that you can manage more effectively. Whatever the case is, you must secure proper financing if the purchase is to be a wise financial choice for you and your family. However, in some circumstances, you may require something called an Ontario private mortgage. The reasons are far-ranging.
The first reason that a private mortgage Ontario may be required is if you have been turned down by banks in the past. This could be caused by many reasons, including bad credit, unverifiable income or unstable work. Self-employed individuals may face these issues. You could simply be in a hurry and not want to wait around while the bank takes their time deciding if they want to finance your mortgage or not. You may also need something “unconventional” for a mixed-use property. When purchasing a property like this, you may have been told in the past that it could not be financed, but you have continued to look for options despite being told this. Fortunately, your dedication to finding appropriate financing has paid off because private mortgages Ontario are ideal for all of the above situations.
An Ontario private mortgage is one that is funded by individuals or a group who are hoping to make a better return on their investment than only a 2% interest sitting in their bank accounts. These investors are comfortable with placing their money in secure real estate investments. For your personal benefit, they overlook issues of poor credit, bankruptcy and zoning issues and choose to fund private mortgages Ontario as a profitable investment. To put it simply, these investors put their money in people and property instead of reports and numbers.
Some private mortgage Ontario investors only put their money into residential housing. This is perfect for most people seeking an affordable Ontario private mortgage, but you may also be looking to make a commercial building purchase. Fortunately, some of these individual and group investors will look into those options as investments as well. The bottom line is that every investor is different in the amount of funding they are able to provide, the rates they charge and everything else that separates mortgages from one another. The complexity of options and varying combinations of benefits means that it is very important for you to work with a broker as you seek the best private mortgage Ontario available for your unique situation.
As you work with a broker, he or she can help you determine what different lenders’ comfort zones are. By working on satiating a lender’s appetite, you will find better deals no matter what kind of property you are looking for. Some lenders who fund private mortgages Ontario are willing to consider farmland mortgages, mobile homes, vacation properties, and even mortgages for bare land.
The bottom line is that an investor will listen to what you need, why are seeking an Ontario private mortgage, and they will make their final decision of whether or not to fund you based on all the information they see. This includes documentation like bank statements, recent appraisals that have been made, your employment status, and whatever else you can provide to prove to them that you and your property are worth investing in.
Most of the time, all this communication is accomplished over a long distance via phone conversations, emails and fax machines. However, sometimes a private mortgage Ontario investor will want to meet with you in person, hear your story face-to-face and see the property they will be investing in by providing you the means for obtaining a private mortgage. This level of personal care and attention to your requirements is not something you will ever find with a mortgage from a bank. Private investors want to know you, your story and the reasons you have chosen to obtain an Ontario private mortgage.
There are a few facts about private mortgages Ontario that you need to know before you decide that it is absolutely the best option for you. Because of the relevant reasons that may have prevented you from obtaining a standard kind of mortgage, there are usually going to be a few minor consequences for the fact that you have a backup option in private lenders. First, the interest rates you pay on your Ontario private mortgage are typically higher than what a bank could offer you. While this is not positively the case in every situation, it is a likely fact of using private mortgages Ontario.
Next, the term length of this kind of mortgage is usually one to three years. The term may be longer if there is a valid reason for it to be so. May times this is the only length of time you need before you can became bankable again and obtain a lower interest rate. The fees you pay during the duration are different depending on what your broker helps you find. It is typically between 1% and 3% though numbers outside this range are not unheard of either.
Individual and group lenders offering private mortgages Ontario will typically be from the area. This is because these kinds of lenders like to keep their investments local. Once you secure an option to apply for, you will undoubtedly be eager to find out about your acceptance. However, the range in which you can expect approval of your loan is quite spread out. You might hear the answer within just over 24 hours or up to two weeks, depending on the deal. Then, you can sometimes secure your physical funding within a week, but generally it takes up to three weeks to see the private mortgage Ontario funding that you need. To have access to any of this, you usually need to work with a mortgage broker, which is why they are so important to your private mortgage success.