PeterboroughMortgageBroker.ca unveils a new network of private lenders in Peterborough. Private lenders are simply individuals who can offer mortgages that were turned down by banks and credit unions. These institutional lenders must follow strict mortgage approval criteria, which leaves out many low-income earners and people with bad credit. Private lenders offer alternatives in form of home equity loans, second mortgages, debt consolidations and a variety of personalised loans. Clients of private lenders may also negotiate longer repayment terms considering their monthly income. The new private mortgage lender network in Peterborough works differently from banks and therefore services more loans than banks can.
Private lenders of Bad Credit Mortgages in Peterborough
Clients can only access bank loans with an impressively high credit score of 600 or more. Those who were turned away by banks only have private lenders to turn to as they consider different factors when making lending decisions. Unlike banks, private lenders are in the real estate business, meaning that they can afford to lend money with the property as security. A registered mortgage allows private lenders to sell off a property to try recovering their investment should a borrower default. Mortgage agents at PeterboroughMortgageBroker.ca has affiliations with many private lenders and are therefore ideal professionals to negotiate the best loan terms on your behalf.
Types of Loans and Services Provided by Private Mortgage Lenders in Peterborough
Private lenders can operate more freely than banks which are why the can bend the rules to grant customers a mortgage tailored to their needs. They are much sought by individuals with bad credit but even those seeking more flexibility also make a large portion of their clients. A private lender may offer a loan to pay your construction workers until the project is complete or help in stopping a power of sale. Private lender mortgages are the best chance to actualise one’s financial goals by leveraging personal assets.
Second Mortgages by Private Lenders
A borrower who was turned down by banks may approach private lenders for a second mortgage on the a property if there is some equity remaining. To be sure, about the investment, private lenders must calculate property loan to value (LTV) ratio. This is an important metric obtained by dividing the debts on a home with its current market value. The new network will only loan to a maximum 85% LTV to avoid making losses in case of default. While the Ontario Mortgage Act grants power of sale to the lender in case of default, lending to very high LTV only reduces the chances of recouping because all mortgage holders must be paid sequentially.
Private Funding to Stop a Power of Sale
Lenders are allowed to activate a power of sale against properties in default. They prefer this course of action which speedier and cheaper for them compared with foreclosures which demand numerous lawyers and court appearances. A client facing this situation must approach a private lender with all documents to ensure fast processing of the funds. The best way to resolve a power of sale is to pay all cash demanded by lenders and their lawyers. Fortunately, private lenders follow a unique set of rules, which make it possible to provide funding in only 24 hours.