Even if you have a perfect credit history you may find yourself having problems obtaining the right mortgage for your needs. There are many different reasons for this; it can be as simple as a lender thinking you are stretched financially to a lack of previous credit. Whatever the reason it can be a frustrating time; you will undoubtedly be convinced that you can afford the mortgage and yet others will tell you that you cannot! This is when you need to start looking at what alternative options are available to you. To ensure you get the finance you need you may find it beneficial at this stage to use the services of a respected broker such as OE Mortgage – Private Mortgage Lenders in Toronto. They will be able to guide you through the process, remove much of the stress and help to ensure the funds you need are available.
Private mortgages are simply those which are funded by people outside of the normal banking profession. These people may accept much lower rates of interest than the standard bank deals and there may even be some flexibility in the repayments. However, as with any financial commitment it is essential to be certain that you can afford to repay it before you commit to the funds. It is important to be aware that any deal is likely to be for a much shorter period than a standard mortgage.
How to choose Private Mortgage Lenders in Toronto
There are three main sources of private mortgage and you should assess each one to see if they will fulfill your need and you will be comfortable borrowing from these sources:
Family and Friends
You may be surprised at how many people you know have enough funds to cover your mortgage requirements. It is even possible to borrow from several sources to help raise the relevant funds. It is worth noting that this can get complicated and is not recommended to spread your loan over too many people. This group can provide you with an excellent range of deals but if you default, your closest relationships will be at risk.
Instead of asking those you know well for funds you may find that there are several possibilities through friends of your friends and family. These are people who know you a little but are less likely to give you a preferential rate. This will feel much more like traditional mortgage lender except you will not need to concern yourself with credit scores or many of the other parts of the process.
Finally, there are many people who have significant funds and are looking to make a good rate of return on their money. These will generally be accredited investors which can be located through the services of a broker or via private advertising. They will want higher rates of return for their funds as their primary aim is income generation. They are also likely to offer short term loans. This can make them perfect for flipping or for bridging while you sell your current property.
Whichever method you use, your broker can help you to get the best deal and chase the property of your dreams.