First of all, a Charlotte Town hard money loan and Charlotte town private mortgage financing are basically the same thing.
There are varying degrees of private mortgage financing, but essentially they are all equity based to a large extent which is why they are also referred to as hard money. From a lender’s point of view, the strength of the lending decision is based on the current value of the property, the amount of an equity buffer that will exist after a mortgage is placed, and the degree of difficulty to sell the property into the market place if required.
The term hard money comes from the hard way the lender has to look at the deal in terms of rate, security value, and repayment ability. Should there be any default in payments, private lenders will on average take a very hard approach to either getting the payments caught up, or taking action within their legal rights to foreclose on the property and get their money back.
Regardless of what you want to call it, private mortgage financing or hard money loans provide a very important roll in the real estate financing market. And since 2008 and the related recessionary impacts on the financial market, more and more financing scenarios are being filled by private mortgage lenders due to bank and institutional lenders taking a far more cautious approach as we climb out of the recession.
Primarily placed for bad credit debt consolidation scenarios, Charlotte town hard money loans can be utilized for a number of different bridge financing applications including construction financing, real estate flips, and quick close property purchase scenarios where there isn’t enough time to secure a bank mortgage even though the applicant would likely qualify for one.
Because most private lenders choose to work through licensed Canadian mortgage brokers to gain access to potential deals, its going to be important to work with an experienced private mortgage broker who already has direct access to private lenders that can meet your needs as well as a track record for placing hard money loans and mortgages.
If you need a Charlotte town hard money loan from a private mortgage lender, I recommend that you give me a call so I can go over your requirements quickly and provide private mortgage financing options for your consideration.
Charlotte Town private mortgage financing can be arranged on a wide variety of commercial and residential real estate property types in Charlotte Town and in the immediately surrounding area. Private mortgage lenders tend to be regionally focused with more of an emphasis in urban areas where there exists an active resellers market for similar or like properties. Once you get into more rural real estate holdings, the private lending options can be significantly fewer and farther between.
Private mortgages or hard money loans are they are also referred to, are predominantly used for short term financing, typically no greater than one year. An while many people would consider a private mortgage as financing of last resort, there are many situations where securing a Charlotte Town private mortgage makes more sense than trying to get a comparable amount of financing from a bank or institutional lender. That being said, the majority of situations where a private mortgage is provided has some element of poor or bad credit and a need to access capital quickly to keep the walls from closing in.
Private lenders finance against the equity amount that can be easily identified in a piece of real estate. The mortgage itself may be in either a first or second security position on the property and the total amount of financing that can be advanced will typically not exceed 65% of the fair market value of the property under consideration with the valuation based on short term liquidation.
Charlotte private mortgage lenders tend to work through mortgage brokers in order to access the market. While some private lenders will advertise their own funds for investment in mortgages, most will opt for utilizing the existing marketing channels of mortgage brokers instead. Therefore, going through a mortgage broker may be the only way to access specific private lenders that would be interested in financing your property.
Therefore, the best way to get access to a Charlotte Town private mortgage is to work with an experienced mortgage broker who has direct access to private mortgage lending sources as well as a track record of successfully placing private funds.
If you are in need of a Charlotte private mortgage or would like to better understand your options, please give me a call so we can quickly go through your requirements and provide private mortgage funding scenarios for your immediate consideration.
Saint John private mortgage lending sources are typically individuals, small syndicates of private investors, or formalized mortgage investment corporations that place their investors money into private mortgages.
Each lending source will have their own criteria to a certain extent as well as appetite for different types of deals, but there are some general trends that you can expect regardless of the private mortgage funding source.
First, most Saint John private mortgage lenders will lend in a range of 50% of the fair market value of the property to 65% of the value of the property. To be clear, the average will fall in this range. That being said, there will be exceptions that fall out of both ends of the range based on the strength or weakness of any particular application and property type and profile.
With private mortgage lenders in the Saint John area, expect the interest rate to be no lower than 10%, again on average, on first mortgages with higher rates on second mortgages. Mortgage payments are typically going to be interest only and the mortgage term will likely not be more than one year, again in most cases. If a borrower is extended for more than one year, there will likely be a renewal fee required as the private mortgage lender will receive fees on closing for any new mortgage. So if the private lender can’t place a new mortgage at the end of the term, it only stands to reason that a renewal fee will be required, otherwise he or she will likely require a timely payout of the mortgage so the funds can be invested in other mortgage opportunities.
Private money, or hard money loans as some choose to call them, are not cheap by any stretch. But compared with the alternative of not being able to come up with the money required, the cost can end up being a bargain in many cases. Saint John private mortgage lending is going to be required by individuals with short term needs where it may not even make sense or there isn’t sufficient time to go to a a bank. This is really a form of bridge financing that is available to anyone with equity in a residential or commercial real estate property.
If you require Saint John private mortgage lending, please give me a call so I can quickly assess your requirements and provide private mortgage options for your immediate consideration.
Moncton private mortgages are most commonly provided in situations where 1) the borrower’s credit will not allow them to qualify for a bank or institutional property mortgage; 2) the borrower has too much of an overall debt load to meet the requirements for a bank mortgage; 3) the applicant cannot show sufficient monthly cash flow to adequate service the debt per the requirements of an institutional lender; 4) the property type is not of interest to a conventional lender, and 5) the time available for completing private mortgage financing will only allow for working with a private lender.
While each situation is unique, most will have one or more of the above elements are work that leads the applicant to apply for a Moncton private mortgage.
Because of the higher level of lender risk associated with these types of loans, the rates and fees associated with a private mortgage will be higher than what you would expect from a conventional mortgage lender. In some cases, the rates and fees combined can be substantially higher than conventional financing, which again relates to the risk involved in the transaction.
For any type of private mortgage financing scenario, the more lenders that have interest in a particular property for security, the better the deal you’re likely to be able to require with respect to rates and terms of repayment. On the flip side, the less lender interest there is in a given property and borrower credit profile, the more likely the related rates and terms are going to be higher than the average pricing for private mortgages in Moncton.
The best way to locate and determine what the best available deal is for a given situation is to work with a Toronto mortgage broker who has experience working with private mortgage applications, placing Moncton private mortgage requests, and maintains direct relationships with private lenders that service the Halifax and surrounding area. Most private lenders will only work through mortgage brokers, so to even get access to the market, a mortgage broker is likely going to be required in many cases.
If you need a Moncton private mortgage for a home equity loan, commercial property refinancing, or some other application, I suggest that you give me a call so I can quickly assess your situation and provide relevant private mortgage financing options for your immediate consideration.
Hard money loans in Halifax are essentially private mortgages for the most part where lending decisions are based on 1) the equity in an asset that be pledged as security and 2) the lender’s view of how hard it would be to liquidate the asset to get the financing advance repaid in the event of default.
Hard money can be extended against both residential and commercial real estate and the private mortgage placement can be in first or second security position. The amount of financing that can be advanced would range from 50% to 65% of the fair market value of the property in most instances. This would include all charges against the subject property.
Hard money loans on real estate are typically for a period of one year with a lender fee due on closing plus the requirement of monthly interest only payment. There are some private lenders that will ask for an amortized payment to further reduce their risk, but for the most part, the monthly mortgage payments are interest only.
In the event of missed payments, a hard money lender will act quickly to get the situation corrected with the borrower. If payments are not brought up to date right away, then the lender will take action against the borrower to gain control of the asset according to the lenders rights as a mortgage holder. The foreclosure process will vary from jurisdiction to jurisdiction which will impact the time it takes to realize against the security.
Most hard money lenders or Halifax private mortgage lenders do not promote their services directly to the public and instead choose to work through the licensed mortgage broker network. Mortgage brokers in turn will qualify potential deals that require hard money and send them on to the lender for review and potential approval. Working with an experienced mortgage broker with a successful track record for placing this type of financing can be key to getting the funding you’re looking for in the time you have to work with.
If you need to access a Halifax hard money loan or want to know more about your options, I recommend that you give me a call so I can quickly review your situation and provide hard money loan options for your immediate consideration.
For private mortgage financing in Fredericton, N.B., the process for securing funding is typically arranged through a mortgage broker.
Regardless of the type of property, or the use of the funds, most Fredericton private mortgage lending sources access the market through the licensed mortgage broker network.
And while most private mortgage lenders tend to be local to the market, there are a number of private sources from outside of Fredericton or even the Maritime provinces in general, that will provide funding for private mortgages against residential and commercial real estate properties. Furthermore, due to the fact that most private lenders don’t self advertise or directly promote their mortgage financing services, the only sure way to get access to a private mortgage for a Fredericton property is to work with an experienced mortgage broker who has a track record of placing private mortgage financing in the area, and as direct access to lenders that provide mortgage funding for the type of property you own.
Keep in mind that private loans, or hard money as some refer to them, are primarily based on the equity of the property and the lender’s view of how difficult or easy it will be for them to resell the property in the event of a mortgage default to get the funds advanced and any arrears repaid. Private mortgages are typically for one year terms and if the lender chooses to provide an extension, there is likely going to be a renewal fee required.
Fredericton private mortgages are available for first mortgage position and second mortgage position scenarios. Keep in mind that for a private second mortgage requirement, the amount of funding a lender will be substantially less than if a first mortgage position was being offered. As a general rule, private lenders will finance up to 65% of the value of the property. There are exceptions to this rule on both sides whereby on certain properties a private lender may not be prepared to go higher than 50% loan to real estate value, while on others the funding amount can be considerably higher than 65%.
In most cases, the process for applying, getting approved, and having funds advanced is substantially faster than what you would experience with a bank or traditional lender application.
If you require a Fredericton private mortgage, I suggest that you give me a call so I can quickly assess your situation and provide private mortgage options for your immediate consideration.
Private Mortgage Lenders in Halifax are primarily going to be individuals that place their own funds into private mortgages, syndicates of private lenders where a group of individuals each invest in part of a mortgage, or mortgage investment corporations that take investor money and place it for them into private mortgage loans in the Halifax area.
While the more investment corporations do have some direct to market advertising showing you who they are and how to get a hold of them, most private mortgage lenders rely on mortgage brokers and the mortgage broker network at large to provide them with private mortgage financing opportunities to consider.
As a result, if you are looking for a Halifax private mortgage lender yourself, they may be difficult to find without the assistance of a mortgage broker that places private mortgages in the area. There are many benefits from working with a mortgage broker in addition to getting access to private lenders.
First of all, for each type of real estate property and funding applicant there can be considerable differences in interest from one private lender to the next. Most mortgage lenders, whether banks or privates, are going to have different areas of focus and even if they look at a broad cross section of mortgage financing opportunities, they are still going to have programs or parameters for different types of properties, amounts, mortgage positions, and so on. So for each private mortgage request, one of the key benefits of working with an experienced mortgage broker is getting connected to the most relevant private mortgage lender for Halifax related properties as quickly as possible.
In many instances there can be a time pressure for getting access to money so the private mortgage may need to be arranged quickly. So its important to be applying with private lenders that have a high potential for funding your request versus wasting time with less interested parties. An experienced private mortgage broker with a track record of placing private property loans is going to increase your chances of not only meeting your time requirements, but also getting the best available deal in the time you have to work with.
Which leads into the second major benefit of working with a mortgage broker that knows what they’re doing and that’s getting the deal closed and funded. Its one thing to find a relevant lender, but helping get the deal approved and funded on time can be an entirely different matter. Utilizing a mortgage broker’s expertise throughout the process can make all the difference when seeking private loans.
If you’re looking for private mortgage lenders in Halifax, I suggest that you give me a call so I can quickly assess your situation and provide you with relevant private mortgage options for your immediate consideration.
A Halifax private mortgage is available through our private mortgage lending sources that service Halifax and the surrounding area.
A Halifax private mortgage can be acquired for a number of different purposes including land acquisition, mortgage refinancing, debt consolidation or construction financing. Of these four applications, consolidating debt is the most common. With a private mortgage, debts such as credit cards, trade payables, government arrears, term loans, etc are consolidated into a new mortgage to be registered against a real estate property. If there is an existing first mortgage in place, it may need to be included in the debt consolidation process. But at the same time, it is also possible to get a Halifax private second mortgage arranged as well where the first mortgage is not impacted. The debt consolidation strategy taps into the equity available in an owned property via a private mortgage.
Halifax private mortgages can be secured to up to 65% of the value of the commercial or residential real estate. The exact amount that can be approved for any given situation and property will be determined on a case by case basis.
While most people equate private mortgages or loans with the term hard money, the reality is that private mortgages fill a need in the market that banks and other institutional lenders are either not prepared to service or are too slow to service.
For example, there are times when a Halifax private mortgage is used to purchase property even though the buyer could have qualified for a bank mortgage. The reason that the private mortgage is taken instead is most likely due to timing. If there is a small window of time available to close the deal, a private mortgage may be the only way to get the deal closed in time.
Halifax private mortgage loans are also a common source of construction financing where the funds for a building project are advanced against the current value of the property and the increase in value that takes place once phases of construction are completed.
If you require a Halifax private mortgage for any of the above applications, please give me a call so I can quickly assess your options and provide private mortgage financing solutions for your immediate consideration.
For non resident mortgage financing programs in Canada from bank or institutional lenders, there are some basic requirements that have to be met that are quite common to most of the institutional lenders that provide this type of mortgage program.
But before we even get into some of the specific requirements, the most important point for non residents is that these type of mortgages are quite commonly placed in Canada. The key to getting a non resident mortgage that meets your requirements and time lines is to work with an experienced mortgage broker that has knowledge of the available mortgage programs and a track record for getting them placed. Because we are talking about institutional or bank mortgage programs, the mortgage broker fee is paid by the bank and has no impact on your rates, terms, and fees, so there really is no reason not to use a mortgage broker for this type of transaction.
Ok, back to the features and requirements.
In general terms, a non resident mortgage can be approved for up to 65% of the value of the Canadian property being acquired or refinanced. The amortization period on an approved non resident mortgage can also be as high as 35 years.
The main application requirements center around customer and application information verification.
All aspects of the non resident mortgage application need to be verified by the mortgage lender including but not limited to…
Another key area of the non resident mortgage application is the credit verification. Because the applicant may not have any form of established credit in Canada, the mortgage lender will typically require a letter of reference from a financial institution that the applicant currently has outstanding financial facilities with or has had in the past. If the applicant has been able to establish some level of local credit, then a Canadian based credit report will also be drawn for further support.
If you’re a non resident of Canada and looking to secure a mortgage against Canadian property, please give me a call so we can go over your requirements together and outline the steps required to get your mortgage in place as soon as possible.
Even though technically, all mortgage brokers have the same basic qualifications and can assist with any type of mortgage, the different slices in the mortgage market are going to be hard to master collectively. As a result, the more focused a mortgage broker is on certain areas of the market, the more they will be in tune with active lenders, mortgage lender criteria, and the process for getting deals done.
This is very much the case with respect to commercial property mortgages where each loan request needs to be customized to the available lenders due to the wide diversity of commercial property that exists in the market.
An experienced commercial broker that has a focus and track record of success with commercial property loans is going to be more successful on average than a mortgage broker at large that has never completed or funded a commercial property financing request.
There are a number of key areas in the process where this will consistently hold true.
First, the commercial mortgage application process, on average, is significantly longer than a residential mortgage application process. So its important that you focus on commercial mortgage lenders that are able to complete the transaction in the time you have to work with. There are times when you’re business could be eligible for better deal, but due to the fact that cheaper forms of commercial financing can take longer to process applications, it may not be the best strategy to take if time is indeed a limiting factor to your purpose for financing.
Second, whether you have a short term time pressure or not, your time is still valuable and its easy to waste a significant amount of time and money focusing on lenders that have a low probability of being able to provide what you’re looking for. So its important to get focused quickly on the most relevant commercial mortgage lending sources to be most efficient with your mortgage sourcing efforts.
Third, the process for application for a commercial loan can vary among lenders so you need to make sure that you are able to meet the requirements of the lender prior to applying in order to once again get to the finish line sooner than later.
If you are in need of a commercial property loan, please give me a call so we can go over your requirements together and discuss different commercial mortgage strategies you can take.
Most business owners seeking a commercial mortgage will desire low interest rates and high loan to value ratios as real estate financing is typically one of the cheapest forms of business capital available and maximizing it can reduce the cost of capital in other areas of the business. Real estate also affords longer repayment terms which will also benefit cash flow compared to shorter amortizations on term loans.
So while low cost, high leverage may be desired, there is a trade off to be considered in most cases.
The cheaper sources of money will provide commercial mortgages in a range of 60% to 75% of the fair value of the property , with the average closer to 60%. The lower the interest rate, the lower the risk which is reflected in the loan to property value ratio. The cheaper forms of commercial property financing tend to be major banks which are also interested in your working capital requirements and in many cases will not be prepared to provide their most competitive rates for a commercial mortgage unless they are the senior lender for the business.
Term lenders that provide business financing for equipment and real estate or just real estate, have a slightly higher cost of capital than the major banks in most situations. In order to compete for your business, they will offer higher loan to value ratios that come with a slightly higher interest rate offer. If the business is strong enough financially, term lenders can provide up to 100% of the fair value of the property in the form of a commercial mortgage. The rationale is that the business balance sheet overall is still within an acceptable debt to equity ratio and the corporate and potential personal covenants are very strong to offset the high percentage of lending versus a property’s fair value. These high ratio commercial mortgages are more common among self occupied buildings where the cash flow assessment is more based on the strength of the business than any income producing tenants.
In the end, there can be a trade off between the lowest possible interest rate available and the highest amount of loan to value leverage available. A proper cash flow exercise and weighted cost of capital calculation should be able to determine which solution makes the most sense for your business.
If you need a commercial mortgage and would like to work through the different options available to you in the market place, I suggest that you give me a call so we can discuss you’re requirements in more detail.
Ontario hard money loans are another name for private mortgage lending.
The term hard money comes from the perception and reality that private mortgage lenders are many times lenders of last resort, providing financing strictly based on the available equity in a real estate property. Because there may not be any other financial pluses to the potential deal (decent credit, reasonable debt load, enough income to pay the bills), the private lenders know going in that there is a good chance that the borrower will not be able to repay the loan and if this occurs, they will have to move swiftly to foreclose on the property in order to be able to get back the funds borrowed plus any payments outstanding.
So the lender has to take a very hard approach which lends to the expression hard money… or at least that’s my take on it.
Regardless of what you call it, private mortgage financing is an key component to the mortgage lending spectrum providing a valuable and needed funding service to those with bad credit, situations that require a debt consolidation, or a need for funds for some other purpose quickly.
The most common form of Ontario hard money loan is a private second mortgage on a single family residential home. These loans are typically less than $100,000 in size, reducing the risk of loss to the lender, and will typically not exceed a total loan to market value on the property of 75%. There are exceptions both ways to this general rule depending on the property and the lender, but for the most part, very high mortgage ratios are going to be hard to secure because of the inherent risk of default.
The average hard money loan against real estate property is for a one year interest term whereby at the end of the year term, the mortgage has to be repaid, or if an extension is granted for an additional one year period, the lender will likely require a renewal fee.
If you require an Ontario hard money loan or would like to know more about them, please give me a call so I can quickly assess your requirements, get all your questions answered, and provide relevant private mortgage financing options for your immediate consideration.
A Toronto interest only mortgage is primarily a private mortgage that can be placed in first or second or even third position against residential or commercial real estate.
A private mortgage typically has interest only payments so even though the interest rate is higher, their may not be any negative impact on your cash flow compared to a bank or institutional mortgage at a lower rate as there is no principal repayment factored in with an interest only mortgage.
The main reason for the interest only feature is for private lenders to increase their overall rate of return during the mortgage period. With a conventional mortgage, the amortization of the loan over time reduces the amount of interest that can be charged each and every month. With a Toronto interest only mortgage, the principal amount stays the same through out the term of the mortgage so the amount of interest that can be charged each month stays at the same amount.
Most private mortgages either in first or second mortgage position are for an interest and loan term of one year. At the end of the loan term, the borrower needs to repay the loan or pay a renewal fee if the lender provides this option. The renewal fees and lender fees on mortgage closing are the other key elements in the cost of capital related to private mortgage financing. In order to maximize their return on capital, the lenders want a short mortgage period with interest only payments so that the funds can be reused over and over again and generate additional lender fees when new mortgages are issued.
Toronto interest only mortgages are most common with debt consolidation situations where the borrower has bad or poor credit and needs to access the equity in real estate they own to pay down other more expensive debts like credit card balances. And while interest only mortgages can range from 6% to 14%, they can still be considerably cheaper in many cases to the unsecured debt you may be carrying.
If you’re interested in learning more about your Toronto interest only mortgage options, I suggest that you give me a call so I can quickly assess your requirements and provide private mortgage financing solutions for your immediate consideration.
A Hamilton private second mortgage is most typically required on residential real estate property with the purpose of the funding to consolidate debt. This is in effect an equity take out loan against the equity of the property whereby the private mortgage lender is more concerned with the fair value of the property and the market resale dynamics than with the credit or repayment ability of the borrower.
Private 2nd’s can also be placed on other classifications of real estate property including industrial and commercial properties. The key to any Hamilton private second mortgage is going to be the amount of security offered to the lender and the private mortgage lender’s assessment of that security. As a result, most private second mortgages are placed with local or regional money that has a working knowledge of the market in the subject property area and may be inclined to perform their own lender inspections of the property to get a first hand view of things.
A private second mortgage, because it is subordinate or behind a first mortgage, is going to come at a higher rate of interest than the first mortgage due to the higher potential risk of loss to the lender. In very general terms, private second mortgage interest rates on single family dwellings can range from 10% to 14% in the Hamilton and surrounding area. Most private seconds are for a one year interest term with some providing an option for renewal at the end of the term provided that all interest payments have been made in a timely fashion.
Because private mortgages come from more localized sources, its important to be working with a mortgage broker who has direct access to private mortgage lenders that place second mortgages in the area of consideration. Working with private sources that don’t have a focus in Hamilton may result in application declines and higher rates of interest than what could be acquired from more localized sources. And because most private lenders choose to work through mortgage brokers to access the market, the best available options may not be readily available to you unless you are working with an experienced mortgage broker that places these types of deals in and around Hamilton.
If you require a Hamilton private second mortgage, please give me a call so I can go over your situation and quickly provide private 2nd options for your immediate consideration.
Orangeville commercial mortgage financing starts with the type of property you want to finance and the use of the funds you’re after. For bank or institutional lenders, there is a significant focus on the cash flows generated by the property. If the property is self occupied, then the financial statements of the business will need to be provided for the last three completed fiscal periods. If the property has tenants, then a detailed rent roll will need to be made available with the application to not only show who is paying rent, but the related terms and ongoing occupancy commitment.
With commercial properties that area rented, institutional deals will be very particular as to the quality of the tenants as well as the length of the leases in place. For the cheaper commercial mortgage interest rates, its going to be important to have the core tenants under long term lease agreements with five plus years remaining. With self occupied situations, the financial statements are going to need to be able to show a cash flow coverage ratio of at least 1.25 times the total debt service for the borrowing entity.
For each type of property, commercial lenders will have varying degrees of interest depending on how weighted their portfolio is at any given time towards a certain industry segment. What this can mean is that at certain times it can be hard to determine what lenders will provide commercial property financing on specific properties, regardless of the financial strength of the underlying business or rent roll.
For private mortgage lenders, the actual market value and marketability of the property is going to take center stage in the lending decision along with the planned strategy to repay the loan at the end of the loan term, which in most cases is one or two years. That being said, there are private mortgage lenders that will provide Orangeville commercial property loans for longer period of time and even with amortized repayment schedules as compared to the more typical interest only payment requirements.
If you need an Orangeville commercial mortgage, or just want to better understand your options, please give me a call so I can go over your requirements with you and provide potential commercial mortgage solutions for your consideration.