All posts by Joe Walsh
Its A Good Time For Debt Consolidation
“There Are a Number of Factors That Make This a Great Time For Toronto Debt Consolidation”
If you’ve got a bunch of short term, high interest rate debt that you’re having trouble paying down and getting on top of, now is a great time to consider Toronto debt consolidation, utilizing your home equity to fuel the consolidation process.
There are lots of reasons why debt consolidation via mortgage financing or refinancing makes a lot of sense. But on top of all the very good reasons and strategies to get rid of higher interest costs, there is not likely to be any better time to actually get it done than right now for a number of very good reasons.
First and most obvious is the low interest rates we have been enjoying and continue to enjoy. That being said, there is no guarantee that the current rates will continue at these unprecedented levels. Any future increases, which are more likely than not, will be taking money out of your pocket of your future debt consolidation activities.
Second, the housing market, largely driven by the interest rates is over heated at the present time with properties being sold fast and furious at sometime inflated values depending on where you live. Because debt consolidation via mortgage refinancing is based on equity in the property, you’re likely going to see strong housing prices in most areas at the present time, providing the greater potential to have more available equity for a refinancing, debt consolidation action.
At the same time, news reports are now talking about the housing market cooling off in the coming months. And any cooling off may directly impact the available equity you have to work with. Remember that when housing prices fall, so does the amount of equity, so right now could be the best time in the foreseeable future to get the most additional money in your hands to pay down or pay out short term debt.
So for people living in the GTA, there is no better time than the present, for a whole bunch of reasons, to get busy with your Toronto debt consolidation process.
If you are considering debt consolidation and need some assistance, I suggest that you give me a call so I can quickly assess your situation and come up with a variety of relevant refinancing options we can go over together.
Importance of Draw Management To Ontario Builders
“When It Comes Right Down To It, The Most Important Part of an Ontario Builder Loan is Draw Management”
The bigger the job, the more difficult it is to manage cash flow of a construction project.
In fact, of all the construction financing aspects that are going to be important to an Ontario builder, the one that is viewed to be the most critical by many is draw management.
Being able to rely on the predictability and timing of construction draws is something that long time builders don’t take for granted and can easily be ranked as more important than the financing rate being charged to some extent.
Why?
If you’ve been a builder for any length of time, you will know first hand what its like to have to fight with your construction mortgage lender about draw advances in terms of getting them paid out on time and not having them be reduced by what appears to be very arbitrary assessment criteria at times.
The reality is that almost any construction project that requires construction financing is going to have a certain amount of draw management grief. The key is to minimize it and keep the project on track as much as possible.
For larger construction projects in competitive markets, builders may be able to create significant deal competition among lenders as each one tries to win to the business. This can potentially result in better rates and terms for the resulting Ontario builder loan.
The key watch out however, is making sure you end up dealing with a construction mortgage lender that has a reputation for being there when the draws are required versus someone who is known to be aggressive on rate to win jobs at times, but can be difficult to work with or unpredictable when it comes to advancing money.
If you’re going to take a flier on a new source of construction financing that you haven’t previously worked with or don’t know much about in an attempt to shave some of the interest cost out of your budget, just beware of the potential trade off you could be making and what the down side of such a move could cost on the flip side.
Its pretty much like anything else in life…the more predictable something is, the more its worth and worth paying for.
Click Here To Speak To Construction Mortgage Broker Joe Walsh
Get An Early Start On Both Residential and Commercial Mortgage Shopping
“If You’re Even Considering A Real Purchase, Refinance, Or Development That Will Require Mortgage Financing, Now Is The Time To Start The Mortgage Shopping Process”
Perhaps its just sometime in our DNA, but it seems that most people will leave mortgage financing needs to near the end of their acquisition, refinancing, or development planning process.
I guess the working assumption is that locating and securing an appropriate mortgage is going to be relatively easy and fast to do. At least that’s what a lot of the advertising your read and see are basically screaming at you.
And while it may very well be possible to get a mortgage in very short order, is it going to be able to meet all your requirements and provide the best available terms in the market?
When it comes to getting a mortgage for either a residential or commercial application, there are two key things you should consider that can save you a lot of money and headache over time.
The first thing I have already alluded to and that’s to start early. When I say early, I’m talking months in advance. For residential mortgages as an example, you can lock in an interest rate on a preapproval for 120 days which is basically 4 months ahead of when it may be required. The beauty of these pre-approvals is that if the rate drops further during the 4 month locked in period, you still get the lower interest rate.
The second key thing to consider is to find and select a mortgage broker that you’re 1) comfortable with, and 2) has a focus in the type of mortgage you’re going to be needing. More lead time is more time a good mortgage broker has to shop the market and try to figure out the best possible deal you can secure. No matter how good a mortgage broker may be, if the process is “under the gun” to get completed, the deal secured will rarely be the best deal due to timing.
And if you’re working with commercial real estate, the lead time becomes even more important as the commitment and closing processes for different commercial mortgage applications are almost always longer than you can imagine.
Even if you’re working on a development project that won’t be starting for 6 months or more, its still a good idea to get started on the project financing process with a suitable mortgage broker so that there are no surprises in the future and if the available commercial mortgage financing is going to be demanding certain requirements prior to funding, you will have sufficient lead to time to get everything in place and avoid the mad scramble when the project is about to start.
What Exactly Is a Commercial Mortgage Broker Anyway?
“Is There Any Real Difference Between a Residential Mortgage Broker And a Commercial Mortgage Broker or Commercial Mortgage Specialist?”
This is a question I get asked every once in awhile.
Is there really any difference between mortgage brokers that work on residential versus commercial properties.
From a licensing and regulatory qualification point of view, there really isn’t. All mortgage brokers, regardless of the areas of the mortgage market they choose to focus on, will have the same basic training and qualifications.
The real difference lies in their chosen area of focus and the experience they gain from focusing more on commercial properties versus residential properties.
Taking it one step further, while residential mortgages are by far the larger of the two in terms of shear numbers of mortgage issued each year, residential mortgage programs tend to be much more similar than their commercial mortgage counter parts.
In the world of real estate mortgages, there basically is residential mortgages and everything else which is thrown into commercial. And each of the different types of commercial real estate applications has its own lending requirement, lender programs, and even unique lenders that specialize in that particular type of commercial building in a particular location.
So not only are there many potential different facets of the commercial mortgage market, each can have its own unique requirements, and on average, commercial deals have more requirements than residential mortgages.
So, yes, there is such a thing as a commercial mortgage broker. But if you want to get the best level of service from these professionals you need to take it one step further and zero in on commercial mortgage brokers that frequently work on mortgage applications similar to your commercial property financing requirement.
Each slice of the market is going to have its own set of lending requirements, lender relationships, best practices, industry standards, and so on. The more a mortgage broker is focused in on your type of property the more likely they are going to be able to provide you with the best possible service and results.
If you have a commercial property that requires commercial mortgage financing, give me a call so I can quickly assess your requirements and provide relevant solutions that we can go through together.
Click Here To Speak With Commercial Mortgage Broker Joe Walsh
Commercial Mortgage Financing Is Another Kettle of Fish
“If You’re Looking For a Commercial Mortgage, Just Remember That It’s Not Going To Be The Same As Arranging a Mortgage For Your House”
It doesn’t always have to be hard, but on average, a commercial real estate mortgage is much more difficult to get into place than a residential mortgage. There are a number of reasons why this is the case.
First, commercial properties, on average, carry larger acquisition price tags, so lenders are naturally going to be more cautious before they start writing bigger checks.
Second, the resale market for commercial properties in most situations is less active and less predictable than a comparable residential market area. If a mortgage goes into foreclosure, the lender may have to sit on the real estate for an extended period of time and the longer it sits, the more it can drop in value, making it hard to get the loan repaid.
Third, residential mortgage repayment assessments are mostly based on borrower wages and reported taxable income which is pretty easy to verify and get comfortable with. Residential mortgage even go one step further and have standardized debt servicing ratios that are based on significant statistical data. Commercial mortgages on the other hand are based on profit and loss statements which can vary considerably from one business to another, making it difficult for commercial mortgage lenders to quickly and comfortably assess the repayment potential of the borrowing entity.
Fourth, most commercial real estate now require environmental assessments before lenders will finalize a commitment to fund. These assessments can not only be costly, but can drag on and on if lab testing of soil and water are required. If any environmental issues are identified, then the applicant is going to have to clean it up, prove that the clean up was done correctly, and potentially get a further environmental assessment before a commercial mortgage can be secured.
Fifth, commercial appraisals are much more involved and costly than the residential property equivalent. And because there are less appraisers qualified for commercial work, which also take longer to complete, it can take weeks and even months to get a commercial appraisal completed at certain times in certain areas where there is a lot of appraisal demand.
Sixth, mortgage brokers that focus on residential mortgages may not be a lot of help with your commercial mortgage application as they don’t regularly deal with the different lenders and their requirements.
Click Here To Speak Directly To Commercial Mortgage Broker Joe Walsh
Keys to Industrial Mortgage Financing
“When Seeking Industrial Mortgage Financing, Make Sure You Have These Key Things in Order”
To get mortgage financing for An industrial use building and/or property, you’re going to have to make sure you have a number of things in order to get the best deal or get financed at all.
The first thing that every industrial mortgage lender wants to know about the subject property is the historical use that’s taken place and if there is any environmental liability.
Even if the building and/or property itself did not house a use that would be considered environmentally unfriendly, the neighboring business area history will be important to as air, water, and soil can transfer pollutants from one location to another over time.
The best way to prepare for this requirement is to proactively get an environmental assessment completed. This can require multiple phases of work, depending on the property use and what may get detected in the initial site visit.
To improve you chances of getting a clean report and minimizing the overall cost of assessment and testing, make sure that you clean up the building and property and keep it clean. Garage and debris that sits around can create the perception that contamination may exist due to the manner in which the property is being maintained.
Building on the last point, another key aspect of industrial mortgage financing is the current condition of the real estate and the state of repair. The property is only going to be valuable as security to a mortgage lender if the lender views it to have a valid resale market, based on the conditions its in. The more work required, the less likely you’re going to be able to attract lender interest and the interest you do attract will be for lower loan to value mortgage amounts and higher interest rates.
The third key to industrial mortgage financing is demonstrating strong repayment either through the revenues received from tenants or from your own business if you are occupying the building yourself. The stronger the repayment is, the more likely you will get lender’s interested in the mortgage opportunity.
If you have an industrial property that you’re looking to purchase or refinance, give me a call so I can quickly assess your situation and provide relevant industrial mortgage financing options for your consideration.
Click Here To Speak With Industrial Mortgage Broker Joe Walsh.
Selecting Mortgage Broker in Mississauga
“Best Practices For Selecting a Mississauga Mortgage Broker”
First of all, if you’re looking for a mortgage product for a new real estate purchase or refinance, it makes a great deal of sense to utilize the services of a mortgage broker.
For most residential mortgage programs, the lender is going to pay the broker for any fees resulting from placing a mortgage, so you get the benefit of their expertise without incurring any cost.
This allows you the ability to shop the market and get your application in front of mortgage lender you may not otherwise be aware of. Even if your bias is towards your existing bank or lending institution, the advantage of working through a mortgage broker is that you can quickly compare what the overall market has to offer compared to the programs from one source.
As much as your existing bank or mortgage company is always going to want to keep you, the reality is that they may not have the best offer at a given point of time which can cost you money in the long run.
So back to selecting a Mississauga mortgage broker, assuming you’re from the Mississauga area.
The first thing to consider is the type of mortgage product you’re looking for. Is it a residential mortgage, commercial mortgage, construction loan, etc. While all mortgage brokers are licensed to provide all these different types of mortgage products, not all mortgage brokers and mortgage agents are automatically going to have a focus or experience with the type of mortgage you require.
The second thing to consider is the category of mortgage that you’re likely going to qualify for. If you’re credit is significantly strained, or you need to arrange a fast mortgage closing, then a private mortgage may be the best fit for your needs. Not all mortgage brokers will have access to private lenders and even many of the ones that do may still not be able to either meet your requirements or provide the best available deal.
The third consideration is your comfort level with any particular individual. While the first two criteria are always going to be important, don’t over look the importance of working with someone that you trust and feel confident in their approach and abilities. Other than just listening to you’re own instincts, you can also ask for references and follow up with past customers to get a first hand opinion of what others found when working with a given individual.
If you are looking for mortgage assistance in the Mississauga area, I recommend you give me a call so I can quickly assess your requirements and provide relevant mortgage options that we can go over together. If I can’t help you, I’ll tell you right away so that you don’t waste any time as well.
Click Here To Speak With Mississauga Mortgage Broker Joe Walsh
Deciding On a Construction Financing Lender
“When You Have Multiple Construction Financing Offers From Institutional Lenders, Which One Do You Choose?”
Ok, so you’re construction project is strong enough to attract multiple bank or institutional construction financing options.
Good Stuff.
But now you have to decide which option to take?
And how do you decide?
Is it all about the interest rate and lender fees?
This is a hard question to answer in an absolute sense, but I will start out by saying that’s its definitely not all about the rate.
Sure, we all want to pay the least amount of financing costs for anything that requires third party debt financing. But a construction financing commitment, especially on larger projects, will have a number of terms and conditions to consider by the borrower or builder.
For instance, what is the proposed draw schedule and what is the exact process for verifying draw amounts and meeting the requirements of the all important first draw?
Does the project owners have any available cash to deal with any draw short falls or cut backs imposed by the lender?
If advances are required against the property in its current pre-construction state for site or infrastructure development, what will be required to get the advance issued and how long will the process take?
A very important and many times underestimated consideration is the bank or institutional lender you’re working with, the people that will be administering your mortgage, and the organizations processes, procedures, and reputation related to the construction financing of similar projects. If the lender has a tough reputation related to draw requests, a cheaper interest rate thrown out to win the business may result in significantly higher overall costs if any incremental sources of bridge financing end up being required to offset draw reductions and/or draw advance delays.
The people involved in administering the mortgage are not an insignificant part of the process either. I would even take it one step back to the people you’re dealing with at application stage. The larger the institution, the more likely you’re going to be working with a front line marketing person who is going to be big on promises but short on lending authority. So before you start leaning towards one particular lender, make sure that you actually have a commitment in hand that will bind the construction mortgage lender versus a thinly disguised letter of interest or intent or term sheet that has more outs than a 9 inning baseball game.
This is also why its important to work with a construction mortgage broker with some gray hair (probably caused by working through lots of these types of deals) as determining what the best overall offer is for a given project can be difficult to determine, especially if you’re not working through this every day.
Click Here To Speak With Construction Mortgage Broker Joe Walsh
Limited Partnership Mortgage Financing
“Do You Have a Limited Partnership Seeking Mortgage Financing For a Residential Or Commercial Project?”
If you have a limited partnership that needs real estate mortgage financing for a project you’re either planning or in the middle of, you likely already know that this type of financing is not everyone’s cup of tea.
Many mortgage lenders, including several of the majors will either not be interested at all, or put you through an exhaustive application process that’s not guaranteed by any stretch to go anywhere.
That being said, there are mortgage lenders that do these deals and I work with with a number of them. Obviously lender interest is going to be based on location, project type, business plan, exit strategy, equity investment, builder profile, and the general partner’s resume.
Like any type of commercial mortgage project, its important to focus your efforts on relevant mortgage lenders that are going to be the best suited for your deal, time line, and business requirements. Spending time talking to the wrong lenders can lead to a massive waste of time and potential project delays.
The benefits of working through an experienced mortgage broker that has access to these types of lenders is not only in the sourcing of relevant options, but also in getting the commitment in place, and working along side the principles during the mortgage administration process to help manage through any issues that may arise with draw advances and lender requirements.
Alternatively, you can waste a great deal of time trying to figure all this out yourself or working with mortgage brokers or agents that are out of their element when trying to deal with limited partnership mortgage financing requests.
If you have a project you’re planning or in the middle of, I would that you give me call so I can quickly assess your situation and requirements. If I can come up with relevant mortgage financing options, I will provide them for your consideration and you can decide if any of them are worth pursuing with me and my team. Alternatively, if I don’t have a highly relevant mortgage financing source available, I’ll tell you right away so that I don’t waste your time.
Toronto Mortgage Broker – Joe Walsh
“If You’re In Need of a Real Estate Mortgage in Toronto, Should You Be Working With a Toronto Mortgage Broker?”
First of all, I’m totally biased when it comes to working with a mortgage broker or not. I believe in our profession and the value we provide our customers. And if you look at the numbers, 25% of all mortgage in Canada are placed through mortgage brokers as well as 44% of first time mortgages.
I would also say that all mortgage brokers are not created equal. While all mortgage brokers and mortgage agents are qualified to conduct their craft, there are varying levels of experience and specialization that can make a difference with different application scenarios.
For instance, there are mortgage brokers that only focus on residential bank or institutional mortgages. It only makes sense that these individuals are going to have a harder time helping you locate and secure a complex construction financing requirement if its something they’ve never worked on.
Even within a residential or commercial focus, there can be a big difference between bank mortgage, B lenders, and private mortgage lender requirements. Some brokers will have experience in all three layers of the market, some will not have very much. Some will have a stronger support network to assist with deals and some will not.
So one of the key things to take into account when considering different Toronto mortgage brokers is their experience related to the type of real estate mortgage you require. How do you determine this? Go through your scenario with a mortgage broker you’re interested in working with and ask about their related experience in what you’re trying to accomplish, references they can provide, the process they will follow. If you don’t feel comfortable with the answers you’re getting then you’re probably better off interviewing more brokers.
In my experience, most of a borrower’s selection process is their comfort level with any given broker which only makes sense indicating that you should not ignore your instincts before making a selection.
Personally, I take great pride in what I do and I view each client as a partner in the completion of the mortgage application process. I need their help to get the job done properly and I want them to be satisfied with the final result.
If you are looking for a Toronto mortgage broker for a residential, commercial, or construction mortgage requirements, I suggest you give me a call so we can discuss your requirements and see if it makes sense to work together locating and securing a mortgage that will meet your needs.
Toronto Private Mortgage Broker
“Toronto Private Mortgage Brokers Will Provide You With Direct Access to Private Mortgage Lenders in Toronto and Other Parts of The GTA”
If you’re trying to locate and secure a private mortgage in Toronto or in some other part of the Greater Toronto Area, then the best approach you can take is to select a Toronto private mortgage broker to work with.
A private mortgage broker has the same qualifications as any other licensed mortgage broker. The key difference is that they have developed relationships with private mortgage lenders in the local area for different real estate property mortgage applications.
Most mortgage brokers only work with bank or institutional mortgage sources and if they do have access to a private lender, it may only be one individual which will limit the scope of what they can help you with.
Mortgage brokers that spend time to develop private lending sources will have greater access to this market and will be able to provide you with options much quicker than through a broker that doesn’t have a private money focus.
The private mortgage broker route is also important for another couple of reasons.
First, it can be hard to locate a relevant source of private mortgage financing without a knowledgeable broker as many private lenders only work through broker networks.
Second, by working through a mortgage broker that has an existing relationship with a private lender, its more likely that you’re going to be dealing with a reputable lending source versus an individual lender that may be difficult to work with.
Third, private mortgage rates can vary from deal to deal and its more likely you’re going to get closer to the best available deal at a given point of time working through a private mortgage broker that knows the market versus doing it yourself or working with a broker that does not have a focus placing this type of mortgage.
Fourth, while most private mortgages are only for one year, if you have a need for a longer period of time, there are privates that will consider multiple year terms, but they can be hard to find, and harder to find still without the right Toronto private mortgage broker working with you.
Click Here To Speak To Toronto Private Mortgage Broker Joe Walsh.
Toronto Home Equity Mortgage
“Here’s The Best Way To Get The Best Rates and Terms on Your Toronto Home Equity Mortgage”
First of all, a home equity mortgage is a mortgage program that is designed primarily for self employed individuals who may not qualify for a standard mortgage due to the way they report annual income.
Most mortgage programs qualify repayment by some combination of your wage stub, annual T4 slip, letter of employment, and annual notice of assessment from the Canada Revenue Agency.
With self employed individuals, there can be significantly more flexibility in how and when they are reporting their annual income as well as their allowable expense deductions, causing the above income verification sources to not be sufficient for a bank or mortgage lender’s repayment assessment.
This is where the home equity mortgage programs come into play. Under these programs, provided you have at least 75% of the purchaser price to put down as a down payment, banks and other institutional mortgage lenders will allow you to declare what your annual income is and may even require you to sign a sworn affidavit to that effect in front of a lawyer or notary.
Different programs have different qualifications for the home equity mortgages they support such as the number of years self employed, proof date business or corporation was registered, proof of self employed earnings from arm’s length customers, and so on.
Applicants are still going to have to qualify in all other respects in a similar fashion to a wage earner. This will include an acceptable credit score and credit profile.
And while there are several of these programs around, mortgage lenders are always changing policies, terms, and rates to best suit their portfolio and overall risk management requirements.
As a result, it can be hard to figure out which Toronto home equity mortgage is going to be the best fit for you and your family.
The best approach is to work with an area mortgage broker that works with this type of program on a regular basis and keeps up to date with the changes made by the lenders providing services to this segment of the market.
Mortgage brokers also tend to develop direct relationships with the mortgage lenders, providing them with a stronger voice to properly position your application which would not be possible for just an application at larger. And because brokers do not have any direct affiliations with mortgage providers, they are free to shop the mortgage market for the best possible deal that is available to you at a given point in time.
Mississauga Private Mortgage Solutions
“How to Locate and Secure Mississauga Private Mortgage Solutions For Your Residential or Commercial Property”
One of the benefits of today’s mortgage market place is that there has been an increase in the amount of private money that is available to borrowers, especially in the Mississauga and Greater Toronto Area.
The hard part with private mortgages is locating private mortgage lenders in the first place and then trying to determine if they are the best fit for your deal.
Most private mortgage funds are placed through mortgage brokers as they have better direct access to the market needs than an individual private lender or private lending corporation.
But mortgage brokers can’t always provide you with the best available options for private money as they will likely only be working with a small number of privates. Some won’t work with any directly, but will try to access private lenders through other brokers.
The reason why its important to be able to shop the market for private mortgage loans, especially in strong real estate markets like Mississauga, is that private lenders have gotten more competitive on the better deals with interest rates rivaling bank or institutional rates in some cases. If you take the first deal that comes along, you may be paying more than you need to.
A second point to keep in mind is that even though there is a lot of private mortgage money around these days, it can come with very different focus areas. Some private lenders may primarily only do commercial mortgage deals, and even more specific, commercial construction. If a private lender gets a deal outside of their primary focus, the rate is likely going to be higher due to greater unknown risk. This could result in you paying a significantly higher rate than what’s available in the market for your deal.
The third point I would make is about time. If you’re pressed for time which can be the case with many private mortgage deals, then you want to immediately be focusing in on highly relevant lenders that are going to be the best fit for your deal. If you’re not working with a mortgage broker that is well positioned for your needs, a lot of time can get wasted and higher costs incurred in the long run.
If you have a private mortgage financing need, give me a call so I can quickly assess your requirements and immediately get you in touch with relevant Mississauga private mortgage lenders.
Toronto Bad Credit Mortgage
“Here’s How To Locate And Secure A Toronto Bad Credit Mortgage”
First of all, what is bad credit? There are varying degrees of bad or poor credit, each with different financing applications.
Bad credit in general refers to a low credit score and a poor credit repayment record. But each person’s credit profile will tell a different story which can result in different potential mortgage options.
For many institutional lenders, if you don’t have a credit score of 650 or higher, you will not be eligible for their best rates and in some cases they won’t consider you at all.
With credit scores below 650, there are still bank or institutional mortgage sources that can provide reasonable rates, depending on the reason for the poor credit. For instance, it you were away for an extended period of time and accidentally neglected to pay an outstanding credit card balance for a few months, your credit score is going to get hammered, but the severity of the credit issue is very low which will be taken into consideration by certain lenders.
If you credit is below 500 and you have a history of continually missing payments on a number of loans and credit cards, then any type of mortgage financing is going to be difficult to secure because no one wants to constantly be chasing a borrower for late payments.
You can also have a credit score below 500 for events that have happened in the past, but you can also show one or two years of constantly improving credit by you incorporating better credit management practices.
The point here is that bad credit mortgages in Toronto are going to need to be considered on a cash by cash basis, with different options potentially available for different credit profiles.
The best way to determine what bad credit mortgage options are available to you is to work with an experienced mortgage broker that has a focus on bad credit mortgage financing applications.
The mortgage broker will be able to review your credit with you and quickly assess the mortgage lenders that are going to actually be able to help you or will be interested in your deal.
This is going to avoid wasting time with mortgage providers that are likely not going to be able to provide a Toronto bad credit mortgage.
If you require a Toronto bad credit mortgage, give me a call so I can assess your situation and discuss relevant options with you.
Bridge Mortgage Toronto
“Here’s How to Locate and Secure Toronto Bridge Mortgages For a Variety of Real Estate Transactions”
Do you have a real estate deal that threatening to fall apart due to your inability to locate and secure the required mortgage financing?
Do you have a financing need that hinges on leveraging a piece of real estate property to secure a short term mortgage?
Are you involved in a construction project that has run out of money and needs some additional capital to complete the work?
In all these scenarios and many others, a Toronto bridge mortgage may very well be the solution you require.
Remember that a bridge mortgage by definition is for a short period of time that has a defined beginning and end date and a solid exit strategy for repayment. When these conditions exist, a bridge mortgage may be able to be arranged in very short order.
In some respects, most private mortgages are bridge loans in that they are typically only issued for a term of one year or less. There are exceptions to this, but for the most part private mortgages are very short term in nature.
The keys to being able to secure a bridge mortgage in Toronto is to work with a mortgage broker that has a focus on bridge financing requests and works with lending sources that provide bridge mortgages in your immediate area.
This is key for a number of reasons.
First, by working through a well established mortgage broker, the lending sources you are exposed to are likely going to be legitimate private lenders that have been pre-qualified by the mortgage broker and with which the broker has an ongoing relationship. There are all sorts of real estate lending scams out there, so you want to make sure you’re avoiding potential sources of financing that will do more harm than good.
Second, private money is very regional in nature, so unless you’re working with a local source of financing, its unlikely you’re going to be successful securing financing in the time required.
Third, different sources of bridge mortgages in Toronto will focus on different types of financing requests. By working with an experienced mortgage broker, you will end up talking to relevant sources of bridge mortgage financing sooner which will get your financing in place that much faster.
Bridge mortgages in Toronto will cost more than a bank mortgage, but the added cost is for speed and a certain amount of application flexibility that you may not get working with a bank or institutional lender.
If you require a bridge mortgage in Toronto, I suggest you give me a call today so I can quickly assess your requirements and provide relevant local options in as little as a few hours.