All posts by Joe Walsh
2011 Mortgage Interest Rate Predictions
“Household Debt Up And Mortgage Interest Rates Expected To Rise In 2011”
According to Bank of Canada Governor Mark Carney, Canadian consumers now hold more debt as a percentage of their income than Americans. With interest rates expected to rise in mid to late 2011, the possibility of a large scale debt servicing problem is rather high.
With more and more Canadian mortgage holders taking advantage of floating interest rates that remain at near all time lows, the prospects of even very small increases in the mortgage lending rate can have a big impact on home owners ability to make their monthly payments.
This is far from new information … the conservation has just died down a bit over the last 6 months and is now starting up again as Mr. Carney zeros in on the larger areas of concern he sees with respect to keeping his mandate in check, which is keeping inflation under control. While most people don’t see inflation as a problem at the moment, that could change in the near future and the main brake the Bank of Canada has to slow inflation down is increasing interest rates, at least for a period of time.
Due to the swelling level of household debt, the combination of high debt and rising interest rates is a major concern.
So what does all or any of this mean to you?
If you fall into the category of the high consumer debt holder, including very little equity in your home, you may want to start paying closer attention over the next 6 months to the longer term fixed interest rates. If there is short term movement down in fixed rates, you might want to consider taking advantage of the opportunity to lock in for a period of time and reduce the risk of not being able to cover off your monthly mortgage requirements.
The first step, however, is getting a strong hold on what amount of incremental monthly payment you can afford. Going to a fixed interest rate is going to cost more than what you’re paying on a variable rate today so you need to see if your cash flow can even handle it, or make some adjustments to your spending to make the numbers work.
Effectively, the slightly higher monthly payment is insurance against not having interest rates get away from you completely in the coming year or years.
This can be a hard choice to make, especially with rates staying so low for such a long period of time. But the economy always goes in cycles and this time around its likely no different.
The good news is that it appears you have some time to plan ahead and think about what makes sense for your personal situation.
Click Here To Speak With Joe Walsh, Your Toronto Mortgage Broker
Post Bankrupt Mortgage Financing
“Can You Get A Home Mortgage Financing From A Bank If You’ve Ever Been Bankrupt?”
Residential mortgages or home mortgages for post bankrupt applicants can be challenging, but not impossible to obtain.
In fact, depending on where you’re now at after bankruptcy, you may even be able to qualify for a home mortgage loan through a major bank for a real estate purchase. The trick is satisfying all the criteria they will have for someone that has had a bankruptcy in the past. Secondary banks and trust companies also consider these applications, all with their own requirements for getting an approval granted. In the event that you cannot qualify for an institutional mortgage of any type, there still remains private mortgages as an option until you are able to satisfy all the credit requirements associated with cheaper forms of money.
To give you a better idea of what it would take to get a home mortgage or bad credit mortgage from a bank after bankruptcy, here is a list of fairly standard requirements common to most front line mortgage lines.
- One previous bankruptcy. Only one instance of prior bankruptcy will be considered and the applicant must be discharged from the bankruptcy for at least two years.
- Reason for bankruptcy. The lender may require that the bankruptcy was caused by unplanned event such as divorce or business failure versus mismanagement of funds. The amount must also be for a material amount which in most cases must be more than $50,000.
- Source of funds. The person applying for the mortgage must be able to verify the down payment and closing costs from their own resources and cannot pledge these as a gift from someone else.
- Credit. Since the bankruptcy, there are no negative credit events and the applicant has re-established credit through a bank issued credit card or loan.
- Losses. For a bank to consider a post bankruptcy application for mortgage financing, the bank or lender in question will not have lost money as a result of the bankruptcy.
Each lender will have different variations around these requirements, but the bottom line is that if an applicant has worked hard to re-establish earnings and credit after bankruptcy, there is a good chance that an institutional mortgage can still be secured at market rates and terms. One point to mention is that listed rules or requirements are for home purchases, not mortgage refinancing, with is another kettle of fish all together.
If you don’t quite meet these criteria today, within 6 months to a year you may, provided that you focus in on these basic requirements.
Click Here to Speak Directly To Joe Walsh, Your Toronto Mortgage Broker
Residential Mortgage Amortization
“For Your Residential Mortgage Amortization Period, Make Sure You Understand the Interest Rate Cost Versus Cash Flow Saving Trade Off”
One the surface, it sounds great when you hear that a residential mortgage can be amortized for over 30 years, providing you with a means to reduce your monthly cash flow outlay.
But when you break down the numbers, is the decision to take on a longer term amortization a good one?
For instance, if you take any mortgage amount and compare 15, 20, and 25 year amortization periods, you will find that moving from 15 years to 20 years or 25 years will reduce your monthly payment by 20% and 31% respectively, versus what the payment would be for a 15 year amortization. But looking at the numbers further, the total interest cost paid over the life of the mortgage also increases by 36% and 74% respectively versus the 15 year am.
So the question is does the reduced cash flow benefit offset the total increase interest? If you plan to pay the minimum on your mortgage for the full amortization term, the longer amortization period does not make a great deal of economic sense for you if you have the ability to cash flow a higher payment. Obviously if you do not have the cash and that extra couple hundred dollars a month is the difference of making your cash flow work or not, then the longer amortization may become a necessary evil.
The other situation where a longer term amortization makes sense is where you know, or are pretty sure, that you’re going to be able to put incremental lump sum payments against your mortgage over time. Most residential mortgages now a days have some sort of annual prepayment you can make without penalty. Especially in situations of self employment where the income earned can be seasonal or more erratic, the longer amortization provides the least possible monthly payment and prepayment options allow you to pay down the mortgage faster so you aren’t paying all that additional interest associated with a longer amortization period.
Consider longer term amortizations as a tool and use them to maximize your cash flow. At the same time, make sure you understand the cash flow and interest trade offs as well as over time the longer amortization can cost you a significant amount of money.
Click Here To Speak With Joe Walsh, Your Toronto Mortgage Broker
Using Private Mortgages To Acquire Commercial Property
“A Private Mortgage May Be The Best Solution For Financing A Commercial Property Purchase”
As I’ve previously written, a private mortgage can actually be a primary lending option versus a loan of last resort for those with bad credit.
One of the situations where this can be the case is with the acquisition or purchase of commercial property. Depending on the property and related mortgage lender requirements, a commercial property loan from a bank or institutional lender can take 60 to 90 days to close. And while the seller may be more than accommodating with allowing a subject to financing clause in your purchase and sale offer, it can’t be assumed that the seller will also be prepared to have to wait two or three months for the condition to be waved and the sale finalized.
One alternative is to complete the purchase with a private mortgage. While the cost of financing is going to likely be higher and there will be more closing costs to get this type of commercial mortgage in place, the benefit is that the time it takes to get a commitment and get the deal funded is more likely to work with the time the seller is prepared to give you to arrange financing in the first place.
Then, once the property has been acquired, you should immediately start the process for looking for a long term institutional financing solution to pay out the private mortgage lender. Most private mortgages are for a one year term, so that should give you plenty of time to seek out the best available bank or institutional deal. It also affords you time to make property improvements that can add or strengthen the fair market value of the property, further strengthening your case for a bank commercial mortgage. If there is a business associated with the real estate, the added time can allow you to come and improve the operating results if these results are expected to cover all or part of the mortgage debt servicing.
And while 12 months can seem like a long way away, don’t put off looking for your long term commercial mortgage solution too long as you can end up running out of time a second time. With some private lenders, you may even be able to have the private mortgage open for prepayment after a certain period of time, say at least 6 months, giving you the opportunity to switch over to cheaper financing as soon as possible.
Regional Commercial Mortgage Disparity
“Depending On Where Your Commercial Property Is Located, There Can Be Considerable Differences in Commercial Mortgage Offerings and Interest Levels”
Commercial mortgage financing, like most everything else, is driven by supply and demand dynamics, most specifically in the commercial real restate market. And its not just the activity level of the market, its the size of it as well. For instance, major economic centers such as Toronto are large in size and maintains a very active market. As a result, there is a large volume of commercial lenders that set up shop or target this market.
Many of the very same lenders focused on the larger markets will also exist in regional markets or smaller markets across the country. But existence or presence in a market does not necessarily translate to a same or similar approach to financing commercial property. More remote markets will end up being serviced by fewer lenders due due once again to the supply and demand dynamics. And because there are fewer lenders servicing the market, the competition among lenders is much lower, resulting in less aggressive rates and terms being offered to applicants.
And when you take into account the impact that the recent recession has had on larger market lenders, the impact is more greatly magnified in the smaller markets with an even higher level of conservatism in place.
In several instances, specific commercial properties will garner to interest, or the interest that is identified may want considerably more equity to be retained in the property during the mortgage term. Small markets for commercial mortgages are for the most part buyers markets where the lenders are the buyers and maintain the power to do what’s in their best interest without worrying a great deal if at all about the local competition.
And when we speak of regional disparity, this can easily occur within different areas of a province and is not reserved only to areas outside of Toronto, Montreal, or Vancouver.
As a business owner, all this indicates that its going to be important to understand the commercial mortgage supply dynamics in your area or area of interest and not to assume whatever knowledge you have of a nearby market is going to transfer to your location of interest. Dealing with an experienced commercial broker is definitely one way to make sure you’re property financing assumptions are on track when you’re considering a commercial property transaction.
Click Here To Speak With Commercial Mortgage Broker Joe Walsh
Rental Property Mortgages
“Rental Property Mortgages Now Come With Different Considerations”
Ever since the April, 2010 changes to the mortgage insurance regulations, people wanting to purchase and finance mortgage properties are having to put more cash into the deals with the maximum insured mortgage now not to exceed 80% of the fair value of the property. But even greater potential impact is that most A lenders are now only looking at 50% of the rental income for debt repayment versus the 80% they were using in the past.
The main results of these two items is 1) more cash is required to close the deal in the first place if you want a higher leverage mortgage and 2) in order to get 80% of the rental income applied to your mortgage application, you’re going to have to apply to a “B” lender which will increase the rate of interest and reduce the overall profitability of the investment.
That being said, interest rates are still at a very low level so an added 1% to 1.5% in rate is likely not going to kill too many deals.
But the end result overall is that investors may end up holding fewer properties in the short run as we continue to work through the current financial cycle.
Unfortunately, many investors still believe there can be ways around these rules and revised lending standards and continually search the market for something that typically is not there. For mortgage brokers that specialize in rental property mortgages, the approach now is to be up front with the borrowers and layout the challenges right away versus being overly optimistic with securing a better deal that what is available in the market place. This can easily save a week of time shopping the deal around with “A” lenders that will not be able to provide what the client is looking for. By being focused and realistic of what can be done right off the bat, the investor is more likely to get the deal closed on time versus wasting valuable time seeing if there are any market anomalies they may be able to take advantage of.
On the flip side, mortgage brokers who don’t typically work with rental property mortgage requests are more likely to spend a lot of time spinning their wheels trying to get a positive answer from unlikely sources.
If you need a Toronto rental property mortgage, I suggest that you give me a call so I can quickly assess your requirements and provide rental property mortgage options that meet your needs, in the time you have to work with.
Click Here To Speak With Joe Walsh, a Toronto Mortgage Broker
Commercial Mortgage Financing And Cash Flow
“How Commercial Mortgage Financing Can Be Influenced By Cash Flow”
Believe it or not, most banks and other institutional lenders do not consider themselves to be mortgage lenders, although the majority of the dollars they put out into the market every year have mortgage backed security and in many cases the use of funds was to secure a real estate acquisition or refinance an existing commercial property mortgage.
Institutional lenders consider themselves to be cash flow lenders with an emphasis on the cash a business generates and the strength of the overall balance sheet as primary borrowing factors. This can work positively and negatively in your favor depending on a given scenario.
If you have a strong real estate property, but cash flow that only marginally meets the banks debt serving requirements, you may still be able to secure a commercial property loan, but the loan amount as a percentage of the overall property value may only be in the 50% to 60% range.
In situations where the cash flow of the business is very strong, there are institutional lenders that will go as high as 100% financing against the commercial property value where part of the lending commitment is based on cash flow, not just real estate value. Of course a higher loan to value will likely come with a slightly higher interest rate, but when you’re already working with prime plus rates as a starting point, a slightly higher cost of funds is more than made up for with higher mortgage leverage.
Not all conventional lenders will consider higher ratio commercial mortgages, regardless of the cash flow, so the potential benefit of getting a larger mortgage will depend on which commercial lending program you’re applying to. Commercial mortgage financing in general typically will average a loan to market value ratio of around 65%. This is because income producing properties tend to have the established cash flow built into the property value already, providing little opportunity for a larger mortgage to be secured.
Determining where your commercial mortgage then best fits can involve quite a bit more than just a stated interest rate or repayment term. And the different types of commercial mortgage programs that you’re property could potentially be suited for can be hard to figure out unless you regularly spend time keeping track of what different lenders are doing with their programs and portfolios. One of the best ways to zero in on the most relevant commercial mortgage options is to work with an experienced Toronto mortgage broker with a track record of placing similar commercial property financing deals.
If you require commercial mortgage financing, or have some questions on the subject, please give me a call so I can assess your situation and get all your questions answered.
Click Here To Speak With Commercial Mortgage Broker Joe Walsh
Hard Money Loans In Charlotte Town
“Here Are The Charlotte Town Hard Money Loan and Lending Basics”
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
“Quickly Determine Your Charlotte Town Private Mortgage Financing Options”
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.
Private Mortgage Lending in Saint John
“Let Us Provide You With Saint Mortgage Lending Option On Your Real Estate Property”
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
“We Place Moncton Private Mortgages For Home Owners And Commercial Property Owners”
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.
Halifax Hard Money Loans
“We Arrange Hard Money Loans in Halifax Through Private Mortgage Lenders”
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.
Fredericton Private Mortgage Loans
“Private Mortgage Property Loans In Fredericton New Brunswick”
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 Halifax
“Here’s How To Locate Private Mortgage Lenders in Halifax”
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.
Halifax Private Mortgage Financing
“Halifax Private Mortgage Financing For Residential And Commercial Real Estate Properties”
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.