Best Private Mortgage Interest Rates
“The Best Private Mortgage Interest Rates May Be Better Than You Think”
Sometimes the best private mortgage interest rates can be the best rate available from any lending source.
Of course, this is not typical, but there are cases where you may be pleasantly surprised as to the type of private mortgage lending rates that are out there.
For much of the private mortgage lending market, a first mortgage can be priced in the 8% to 11% range. This reflects not only the risk associated with the mortgage being financed, but also the lender’s desired return on investment.
And because someone requiring private money right away may not be able to fully understand or have time to explore the market, they can end up paying a rate that is really higher than the underlying risk of the mortgage.
There is also a small slice of the market where individuals or groups of investors are looking to place private mortgages as an investment vehicle, and have extremely low risk lending criteria.
These individuals or groups are looking to do better than the returns from GIC’s, T bills, and bonds, but without taking unnecessary risk.
The solution for at least part of their portfolio is funding low risk private mortgages.
So for these low risk mortgages, how low can the interest rate go?
In scenarios where you have an excellent property in a very strong market and don’t require more than 50% loan to value, the private mortgage interest rate can get as low as 5% to 6%, with or without a lender fee on closing.
These are really terrific rates and for those lower risk scenarios, this type of money does exist.
But to gain access to it, you have to have enough patience to go through a more conservative assessment and decision making process than what you will find with most private lenders. Lower cost money is lower risk, which almost always moves slower as the decision makers for funding want to make sure that the risk level meets their criteria.
The other challenge with locating and securing the best private mortgage rates is that these specific private lenders are not all that easy to find as they don’t tend to have their own retail presence and in some cases do not even speak directly to the end borrowers.
The access to the lower rate and lower risk lenders is typically through an experienced private mortgage broker who they trust to bring them well qualified deals that meet their lending and funding requirements.
If you have a financing scenario that fits the lending criteria mentioned above and you’d like to explore seeing if you can qualify for a low private mortgage lending rate, then please give me a call so we can go over your requirements together and discuss potential funding solutions that may be available to you.
Click Here To Speak Directly To Toronto Mortgage Broker Joe Walsh
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel