Hard Money Loan
“A Toronto Hard Money Loan Isn’t Necessarily Hard To Find Or Live With”
A hard money loan in Toronto or any where else for that matter refers to (in most cases) an equity based real estate mortgage that is funded from a private mortgage lending source.
The are likely different explanations as to where the term hard money loan came from, but the way I explain it is that because a mortgage is being issued primarily on the basis of equity where the borrower has some combination of strained cash flow and/or credit rating, a private lender is going to act on any lending defaults very quickly because of the risk to them associated with payment defaults.
The comparison would be to a bank or institutional mortgage, where default in payments will still be responded to and dealt with, but potentially not as swiftly as may be the case with a private lender.
In reality, this makes good sense in that the private lender is already providing financing in situation where a certain amount of financial and/or credit distress exists in most cases. Therefore, the need to follow up on any default of payments or any failure to meet terms of the mortgage quickly, is going to be important to make sure the lender can recover their capital.
Hard money doesn’t mean that some rough looking customer in the image of a loan shark is going to break you leg if you don’t make a payment, at least it doesn’t in my world. Private lenders are secured by real estate and as such have legal rights to realize on their security in the event that a borrower does not make their required payments. There’s nothing really hard about it.
That being said, there are degrees of private mortgage lending and hard money loans.
For instance, the more distressed the borrower’s financial and credit profile, the lower the loan to value a private lender is going to advance and the more closely they are going to be watching the account for any problems with repayment.
But like any other mortgage commitment from any other type of lender, the borrower is required to meet the terms of the mortgage as is the lender. Any breach of terms will likely result on action being taken by one side or the other.
A hard money loan is not difficult to secure if you know where to find the private lending sources that would be interested in your financing request.
The challenge or hard part is that most private lenders do not have their own retail presence and many don’t ever even meet with the borrowers.
In order to locate a suitable source of hard money loans, you need to be working through an experienced private mortgage broker that has access to private lenders that funds mortgages in your area.
If you need a hard money loan or would like to know more about them, please give me a call and we’ll go over everything together.
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Hard Money Loans
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