Over the last several months, the market has speculated about interests rates in general going higher over the foreseeable future. In order to get a better sense of what was going to happen and provide options for securing either fixed or variable interest rates, many Toronto mortgage holders made a mortgage application to lock in the interest rates at the time for 120 days.
After all the initial discussion regarding rate hikes, the market settled down for a while, largely due to the ripple effect from what was going on in other financial markets such as the U.S. and Western Europe to name a few.
But now we’re at a time when many of these 120 day interest rate freezes on residential mortgage rates from the spring are coming due, and this is happening right at the time that interest rates are spiking up and continue to look like they may go higher.
This has narrowed the spread between the current variable rates and the fixed rates that many individuals still have locked in 120 days. So before time runs out on the applications they made, its time for them to once again consider fixed or variable interest rates because once the freeze period is over, longer term rates are likely going to be higher with variable rates creeping up.
As we always say, there is no accurate way to predict exactly where the market will go with respect to interest rate rises so it mostly comes down to your own assessment of risk and how much risk you can afford to be carrying in a variable rate position.
If rates start to continually climb up, many mortgage holders will get trapped in a variable rate in that variable mortgage interest rates could soon rise past the levels long term rates were this spring leaving and now there will be no option to lock into the current level of available fixed rates as they will be gone and adjusted upward as well.
If you have a locked in rate and the time period is about to expire, make sure you review your situation closely and make the best decision possible for your future cash flow. Once these rates lapse, they may not return to the same levels for some time.
Newmarket private mortgage financing options are available from both individual private lenders and mortgage investment corporations. With individual private lenders, the lender is a single individual who is prepared to issue mortgage loans on certain types of properties.
Mortgage investment corporations represent a number of private mortgage lenders and place their money in more of a syndicated fashion in order to better protect the lender against loss.
Fundamentally, they are the same form of financing, although mortgage investment corps can act a bit more like banks in terms of how they review an opportunity, and they will typically have a larger access to capital than one private lender would have on their own.
All that being said, we have very good relationships with private mortgage lenders that provide Newmarket private mortgage financing and mortgage loans in other parts of southern Ontario.
The key to finding and locating private mortgage lenders that are the best fit for your requirements is to work with a mortgage broker that represents and works with private lenders that service your area and type of real estate project.
These last two points are important in that private mortgage lenders can be both very regional in terms of where they will lend money and very particular of the type of real estate they are prepared to issue a mortgage against.
Most private lenders do not work directly with the public from a retail or marketing point of view and prefer to access the market through the mortgage broker network.
The good thing about this is that most brokers will have some access to private money sources. The bad thing is that most brokers do not have direct access or a working relationship with private lenders in a given area and in many cases are working one or two or even three steps removed from the source of financing.
This can lead to time delays as well as spending more time working with a private mortgage lender that may not be the best fit for your project, or one that would have very little interest in what you’re looking for.
If you need Newmarket private mortgage financing, or what to know more about it, I suggest that you give me a call so I can quickly review your options and provide you with private mortgage options for your consideration.
Brampton commercial mortgage financing is available through a number of different mortgage lending sources including banks, institutional, and private mortgage lenders.
One of the most challenging things about commercial mortgage financing is that every piece of commercial real estate is somewhat unique in terms of its value, use, age of building, zoning, etc. As a result, the commercial financing application can also end up being fairly customized as mortgage lenders, especially banks and institutional lenders, will have different appetites for different deals.
Another current challenge with trying to locate Brampton commercial mortgage financing these days is that the traditional mortgage lenders are taking a very conservative approach to the market and taking their time to arrive at lending decisions.
Because of the impacts of the recent recession, business mortgage lenders remain cautious overall, but are still very aggressive on the “A” deals. This has created increased opportunity for private mortgage lenders that like to invest in commercial property. Because of the conservative stance taken by most institutional lenders, private lenders are getting a better quality deal on average than they would historically seen, which has also increased competition among private in some areas, bringing the cost of financing down.
What this all means is that for many commercial real estate properties, the cost of borrowing between institutional and private lenders has narrowed considerably in some areas, making private mortgages more of an option both in terms of availability and affordability.
For the most part, private mortgages are a short term solution of one or two year duration. But if you’re on a tight time line and need to get something done sooner than later, then commercial private mortgage financing options are a good consideration.
Fortunately, we have very strong relationships with Brampton commercial mortgage financing lenders in both the institutional and private lender categories. We also work on a wide variety of commercial real estate mortgage requests including those involving construction loan requirements.
If you’re in need of Brampton commercial mortgage financing, I suggest that you give me a call so I can quickly assess your options and provide you with relevant commercial mortgage loan options for your consideration.
For Richmond Hill private mortgage loans, the best way to locate and secure private mortgage financing is through an experienced mortgage broker that has private lenders interested in real estate properties in the Richmond Hill area.
Our team has a number of private mortgage sources that will collectively consider placing mortgages for both residential and commercial properties as well as for funding construction projects.
Unlike banks and institutional lenders, private mortgage lenders do not typically have a retail location and tend to rely heavily on mortgage brokers to source and qualify their deals. While the mortgage broker network overall is an effective way to source real estate mortgage financing of all types, one of the challenges with the private mortgages is that the broker you are in contact with may be one or two steps away from the private lender relationship.
The ideal situation is to work with a mortgage broker who has a direct relationship with an individual private lender or private lending group that provides the type of mortgage you’re in need of in you’re area.
Each private lender will have their own criteria for lending as well as the manner in which they structure their mortgage commitments and the interest rates they offer. The better the working relationship your mortgage broker has with relevant private lending sources, the more likely you’re going to be able to secure the funding you’re looking for in the time you have to work with. Working with too many degrees of separation between the initial mortgage broker and the lending source can create unnecessary complication as well as waste time.
Fortunately, we have a number of private lenders that will consider Richmond Hill private mortgage loans for a variety of different properties and projects.
If you’re in need of a private mortgage for a residential or commercial real estate property in Richmond Hill, I suggest that you give me a call so I can quickly assess your requirements and provide you with Richmond Hill private mortgage loan options that meet your needs.
The initial assessment is free of charge and will get you one step closing to getting your private mortgage financing in place.
Toronto fast private mortgage loan money is most typically used for 1) estate purchases that need to be closed in less than one week, 2) mortgage refinancing and debt consolidation required to avoid a lender collection action.
The speed with which any mortgage can be put in place from application to funding is 2 to 5 days provided that you are working with a mortgage broker, private mortgage lender, and real estate lawyer than can turn the whole thing around quickly.
This is an area where we can potentially help you as our mortgage brokerage is aligned with private lenders and lawyers that can get the job done in a very short period of time provided that everything related to the property and property title are in order.
If you’re looking for a mortgage close in less than 2 days, its unlikely you’re going to be successful as there is basic amount of time required to cover off the mortgage approval and registration process.
A fast private mortgage money close is also restricted in most cases to single family real estate properties as commercial real estate will typically require a slightly longer loan application process due to larger loan size and more assessment into the resale speed of the market.
For residential mortgage needs, we work with a number of different private mortgage lenders in the Toronto area that provide fast closing loan services. Failure to focus on these specific types of private lenders may cause you to waste the valuable time you have and potentially miss your deadline.
If you have a residential mortgage that needs to get closed in less than a week in Toronto or in the Greater Toronto Areas, I suggest that you give me a call so we can quickly assess your requirements and get you working with a private mortgage lender that is capable of getting the job done in the time period required. At the same time, if we are unable to help you, we’ll tell you right away so you don’t waste any valuable time. In most situations, we can provide suitable options within a few hours of being contacted.
If you’re in need of a Markham private mortgage financing on real estate you presently own or are looking to acquire, we certainly would like to help.
We place Markham private mortgage loans with our clients in Markham and through out the rest of the Greater Toronto Area as well as the rest of Southwestern Ontario.
Similar to bank or institutional mortgage lenders, private mortgage lenders each have their own areas of focus and geographic areas of coverage. For any given project, its going to be important to focus in on the private mortgage lenders that going to be able to fund your project and stay away from the one’s that most likely can’t, or will at above market rates and fees.
This can be challenging to accomplish as most private mortgage lenders do not have a direct street front or retail function of their own and primarily utilize mortgage brokers to place their funds.
The challenge with working through a mortgage broker is that it can be hard to tell if a mortgage broker has direct assess to a private mortgage lender that is well suited to your requirements, or if they are working through a number of other brokers just to get access to a private lender that may or may not be of any use to you.
We are fortunate to work directly with a number of private mortgage lenders that provide mortgage funding for a number of different private loan requirements in the Markham and surrounding area. For example, we place private mortgages for residential property refinancing, commercial property acquisition, construction financing and construction bridge loans, fast close mortgages, land acquisition, and land development loans to name a few.
One of the great things about the private mortgage market these days is there are more and more lenders coming into the market all the time due to the higher security and predictability private mortgage returns provide versus the stock market. The key is to be able to efficiently access what you need and get it in place when you need it.
If you have a Markham private mortgage funding requirement, please give me a call so I can quickly assess your requirements and providing you with relevant private mortgage financing options for your consideration.
Mississauga commercial mortgage financing basically covers off all types of real estate mortgage lending that does not involve residential occupancy of less than 5 unit facilities.
So while residential real estate mortgages are by far the largest in sheer numbers, the different types of commercial mortgage applications is almost limitless as there are so many different types of structures that fall into this catchall category.
Let me explain.
Because commercial properties can contain somewhat unique characteristics to their use, it can be hard to find commercial lenders that can fund the deal, at least not for the terms and conditions you may be interested in.
The other side of the equation is that commercial lenders also tend to be niche focused, so each category of commercial property can have different mortgage lending programs and even different Mississauga commercial mortgage lenders to consider.
Taking it one step further, you also will have to consider bank or institutional commercial property lenders versus private mortgage lenders.
On the surface, a commercial mortgage issued by a bank will provide a cheaper rate so in most cases would be preferred as everyone wants the lowest cost form of money. But the cheaper money is not always the best fit, especially if you’re in a hurry or have had any near term financing challenges in your business.
And one of the great benefits of Mississauga commercial mortgage financing is that there is a good presence of both institutional and private mortgage lenders in the area, which can provide several different types of options for most property types.
Lower cost sources of commercial mortgage loans will require more third party verification of financial statements, property values, and property conditions, which does add to the all in cost of financing.
Commercial mortgages issued by private lenders may end up costing a bit more and have a shorter term, but they are more ideal for managing acquisition time lines or bridge financing scenarios.
Regardless of the size or type of the Mississauga commercial mortgage financing you require, your best approach is going to be to work with a commercial mortgage broker that has strong lender relationship with both bank and institutional lenders in the Mississauga area.
The dilemma with commercial real estate mortgage financing is which lender to pick and which offer to go with, assuming you have more than one offer for commercial mortgage financing to consider.
Or if you have an offer in hand, do you try and locate a better offer before making a commitment?
I say that this is a dilemma in that assuming you have a decent piece of property to finance and an even ok financing profile, there are going to be lenders who are going to be interested in providing you with mortgage financing.
The challenge is not getting someone interested. The challenge is getting the deal funded and funded in the time you have to work with.
What most business owners don’t realize is that no matter how large the lender, or how well the application process has gone so far, or how good the term sheet or even commitment contract sounds, the financing process isn’t over until its over.
Its hardly uncommon for deals to fall apart after all the commitment documents have been signed, when the finish line is already in sight. This type of result can be devastating in a number of ways, most of which are financial.
So when trying to decide on which option to pick here are some things to consider.
First, identify an acceptable range of rates and terms. If anything falls within the range, then it needs to be seriously considered.
Second, if you’re starting to get pressed for time, and have an option in the acceptable range, you need to seriously be considering accepting it, especially if its well along in the due diligence process. Many times, the best deal is the deal that can get funded in the time you have, provided it falls within your acceptable range.
Third, lender reputation for getting a certain type of deal in terms of size, location, and industry funded can carry a lot of weight and should be strongly factored into the decision making process versus being overly fixated on the lowest cost offer from a commercial loan provider who hasn’t placed a similar deal in several years or ever.
The best way to not only pick the best commercial real estate financing option, but make sure that the process to funding is well managed, is to work with an experienced commercial mortgage broker.
Unlike residential mortgage refinancing scenarios, Toronto commercial mortgage refinancing situations are not as subject to automatic or near automatic renewals and in fact, its not unusual for commercial lenders to pull in and out of markets according to a number of different factors including the strength of the overall economy, strength of the specific industry paying the bills, and strength of their portfolio.
Plus commercial property mortgages come with more strings including operating statement covenants that if broached can lead to a timely demand for mortgage repayment at renewal time.
Even if you never missed a payment during the interest period, stayed completely on side with your covenants, and were an upstanding borrower all the way through, you still could be served with a payout statement a few months before your mortgage term comes due.
This may not be all bad in that you could end up with an even better mortgage in terms of rates and fees with another commercial mortgage lender. But the grief that you may need to go through to get the mortgage relocated can be considerable. If you are offside with some of the mortgage conditions, then it may be that much more difficult to move to another lender without having to pay a higher rate of interest,
The larger the commercial funding amount, the more stringent the requirements are going to be with a new lender. Things like environmental regulations are constantly evolving. What was acceptable on your site at the time the current mortgage was issued may not be accept now. The environmental standard being applied at a given time can also vary from one bank or institutional lender to another.
There are two things you can do to increase the probability that your long term property financing needs don’t get derailed expectantly.
First, assume nothing and start early. Make sure that all the information you will be expected to provide for the existing mortgage holder, or an alternative, is up to date 6 months before the end of the mortgage term so that all your potential options can be considered.
Second, work with a commercial mortgage broker that can provide you with the market insight that can be hard to come by when you’re not at least knee deep in the Toronto mortgage refinancing market on a daily basis.
If you’re looking for a Vaughan private mortgage broker, then you’ve come to the right place. Located just south of Vaughan’s city limits, we supply private mortgage placements to area clients.
One of the keys to successfully locating and placing private mortgages in Vaughan is working with someone who has local funding sources as private lenders tend to stick to more localized geographic areas compared to many of the bank or institutional lenders.
We are fortunate to have very strong private lending sources that service the Vaughan area as well as neighboring areas in the Greater Toronto Area. These private lenders will provide private mortgages for both residential and commercial projects as well as a large variety of real estate types within these categories.
Because we maintain ongoing relationships with our private lending sources, we have a very solid grasp on what their looking for in a mortgage deal which allows us to match up borrower requests with the right lending source. This is not a trivial issue as borrower/lender fit can be very important, especially when you’re looking at a construction financing project or large commercial or industrial complex.
Because most private mortgage lenders work through mortgage brokers to source their deals, its practically a necessity to work with a mortgage broker if you expect to get the best rates and terms available for a given real estate property and/or project.
And right now, the market can be quite competitive on certain deals, so it’s likely going to be in your best interest to utilize the services of an experienced mortgage broker with private lender connections to source the private mortgage you’re looking for.
In situations where mortgage financing is required in a very short period of time, private mortgages can also provide fast mortgage closings which can take place in as little as 2 to 3 days, provided you’re working with a mortgage broker and private lender that have a focus on fast or quick close mortgage requests.
If you’re trying to locate and secure a private mortgage, then you should definitely consider working with a Vaughan private mortgage broker in order to get the best results in the least amount of time.
Give us a call if you have a private mortgage financing need you’d like to discuss.
Brampton private mortgage lenders are made up of individuals or small lending corporations in Brampton or the surrounding area.
Private mortgages can be acquired for residential and commercial real estate property purchase, refinance, debt consolidation, or construction.
While some private lending groups have direct access to the public, most work through mortgage brokers to place their funds into the market place.
As a result, it makes a great deal of sense to work with a mortgage broker that works with private lenders that service your area in order to locate and secure the best available options.
Like all mortgage lenders, private mortgage lenders have their own focus areas within a given geographic area. They will also have different pricing and different tolerances to risk. So from one property and financing profile to the next, there can be a significant difference in the private lenders that will be interested in the deal, even within the same geographic area.
Brampton private mortgage lenders, similar to privates in other areas, are basically broken down into two groups. The first group is what we would call a more traditional private mortgage lender where the lending decision is primarily on the property and the lender is more than prepared to take over the property if necessary on a payment default in order to recoup the mortgage principal.
The second group, while similar to the first, act more like a bank in their assessment process and do not tend to do deals where the exit strategy projected to be in place to pay back the proposed private mortgage isn’t very strong. While a foreclosure scenario is still a higher risk for any private lender, this second group would prefer to only focus on lower risk private mortgage lending opportunities.
One of the many benefits that private mortgage financing provides is a much similar and faster decision making process than a bank with mortgage funding also capable of being completed in a matter of days compared to the 2 week requirement most banks and institutional lenders tend to go by.
If you’re trying to locate Brampton private mortgage lenders, I suggest that you give me a call so I can quickly assess your mortgage requirements and provide relevant private mortgage options for your consideration.
Toronto commercial land lending can fall under a number of categories. There can be the acquisition of bare land for development or speculation; land with existing buildings that are going to be removed for new construction, or land that has already had some site development that is being provided in a semi prepared state for sale to other builders or developers.
In all cases, the objective is to secure commercial land, or land that is zoned for a commercial use now or in the future.
One of the key factors in any Toronto commercial land lending is the prior use of the property. Previous commercial or industrial use could have created environmental liability that will need to be understood through third party environmental assessments before a mortgage lender of virtually and type will consider issuing a commitment to finance. The less previous use that could generate environmental contamination, the more likely that commercial land lending can be perfected.
Another key factor for Toronto commercial land lending is the local market where the property resides. The market value and ongoing market activity for related properties in the area will have a direct impact on lender interest, mortgage rates, and mortgage loan to property value ratios.
Both of these factors will be considered together to determine commercial lending interest. For instance, a bare land property that was previously used for agricultural purposes will likely have no environmental liability concerns, but if the property is not located in or immediately adjacent to an active commercial development, the market resale value for the commercial land will not likely be very strong.
Both institutional and private mortgage lenders can provide commercial land lending to their clients. For bank or institutional mortgage lenders, there will be more of a focus on where the source of loan repayment is going to be coming from. For non bank mortgage lenders, there will be a greater focus on the exit strategy to pay back the mortgage at the end of the interest term.
Toronto commercial land lending mortgages can range from 50% of the appraised market value to as high as 75%, depending on the property and its market area location.
If you require a commercial land lending facility in or around the Greater Toronto Area, please give me a call so I can quickly assess your situation and provide relevant commercial land lending options for your consideration.
The Toronto commercial real estate financing market is becoming more and more interesting these days in a number of ways.
First, there is tremendous competition among banks and institutional lenders for what we can “A” deals with the strongest getting access to some incredible rates.
At the same time, its also not hard for a pretty good deal (or at least one that would be considered as such just a few years ago) to fall into the secondary bank and term lender financing rate categories. These are still great rates in the current market, but typically one or two percentage points above the very best rates out there.
What’s probably most surprising in Toronto commercial real estate financing these days is the amount of private mortgage money floating around and the types of rates being offered. In many cases, private lenders are competing directly with secondary banks and term lenders for commercial real estate mortgage financing deals.
On larger deals, private mortgage financing can get as low as 6% per year which is a rate level that has rarely been seen if ever in recent history on private money.
Part of the reason for some of the lower rates available through private lenders is that many privates are being more cautious about where they put there money these days. The stock market has not inspired much confidence in over a decade and the residential mortgage market for sub prime lending is still viewed to be pretty risky.
So many privates that have available money are looking to sink it into good solid commercial properties where the loan to value ratios are no higher than 60%.
And because of the more conservative approach being taken in lending in general by banks and institutional lenders, there are more of these types of deals available for private lenders to consider as well.
Keep in mind to that its not all about interest rate. Many business owners and property owners have seen less than stellar operating results during the last two years and as a result they may not qualify for conventional bank financing. With private mortgages also offering short terms with open buyouts, there isn’t much of a drop off when forced to go down market.
The bottom line here is that, depending on your location and the nature of a piece of Toronto commercial real estate property, there can be several different options to consider.
Even though there are far fewer commercial real estate loans issued each year compared to residential mortgage, the number of different types of commercial mortgage requests covers a lot of ground.
Some of the more common commercial mortgage financing applications include:
Put another way, anything that is not a residential property by definition is basically a commercial property requiring commercial mortgage financing.
The main difference between residential mortgage programs and commercial mortgage programs is the risk associated to each by a Toronto commercial mortgage lender.
For commercial property loans, can be increased over residential for a number of factors including size of loan, location, and the resale market for the subject property in question.
While residential properties can be sold fairly quickly, commercial properties can be on the market months and even years before they can be liquidated. For a commercial mortgage lender that is in a foreclosure position, it can take a long time to recover the outstanding mortgage principal and can have significant operating costs involved in getting to a final sale.
In order to manage commercial mortgage risk, mortgage programs tend to focus on very narrow slices of the market so internal expertise can be developed on a particular type of property. As a result, there are numerous commercial mortgage programs on the market, many within the same company, each geared towards the requirements of a specific type of commercial real estate.
To locate and secure the right Toronto commercial mortgage lender that best fits your requirements at a given point of time can be daunting task. The best way to zero in on the most relevant sources and spend your time trying to secure mortgage programs that will best serve your needs is to work through an experienced Toronto mortgage broker who understands the local Toronto market and has well established relationships will a broad cross section of lenders.
If you have a Toronto commercial mortgage financing requirement, I recommend that you give me a call so we can go over your requirements together and discuss potential commercial mortgage options that would best meet your business needs.
It’s an accepted practice to shop around for the best mortgage rages and terms. Lenders are used to having to compete for business and the process can provide benefits that you would not otherwise be able to uncover.
But shopping can easily be taken too far when someone starts to work with several brokers at the same time. The borrower’s theory is that this will likely yield an even better result, but this isn’t necessarily the case.
First, the more applications you have on the go, the more times you credit report is going to be accessed which isn’t going to help your credit score.
Second, the more brokers you’re working with, the more likely the same deal is going to get on the same lender’s desk. If there’s too much confusion as to who you’re dealing with, an otherwise good mortgage opportunity may pass you by when the lender backs away from the deal.
Third, despite what you think, mortgage brokers aren’t completely clueless to this type of maneuver. It can become pretty clear when someone is shopping around a deal excessively, so in order to take you out of the market, you may get promised things that can’t be delivered by the more aggressive brokers, leaving you without the type of house mortgage you’re looking for, in the time its required.
Fourth, unnecessarily taking up the time of several people that you don’t have any intention to work with is frankly bad form and is not something that anyone appreciates.
I have no problem with people spending time with a broker to determine who they want to work with. But at some point, the individual needs to make a decision and choose who will represent them versus having a number of people working on the same deal for nothing and potentially screwing up good potential options in the process.
There are more negatives here than positives. If you want to shop the market, there is a right way and a wrong way to do it.
I welcome the opportunity to help you in any way I can with your home mortgage needs.
But if you plan on getting other brokers to do the same thing without disclosing your true intentions to all those involved, please don’t call as I’m not interested in this sort of run around that frankly isn’t likely going to help you anyway.