Etobicoke Private Mortgage Financing
“Benefits Of An Etobicoke Private Mortgage On Residential Or Commercial Property”
There are those that consider an Etobicoke private mortgage as more of a property loan of last resort, but there are some benefits provided by a private mortgage that cannot be delivered necessarily through a conventional mortgage.
The main benefit is a greater degree of speed and process predictability. If real estate property financing needs to be put into place in a very short period of time, a private mortgage can be the primary choice for a potential borrower. Even though the cost of financing is likely going to be higher, a cheaper interest rate from a bank mortgage is not going to do you any good if the mortgage can’t be put into place in the time you have to work with.
For a residential property, a private mortgage can be sourced, approved, and closed in two to five business days provided that everything related to the transaction is in order. With a commercial property, its likely going to take longer, but still can get done faster than a bank alternative.
Commercial property mortgage requirements from institutional lenders have also stiffened a great deal in recent years, especially when you consider all the changes to environmental law. While environmental liability is also going to be important to a private lender, many times they will not have the same third party requirements that an institutional lender will have which can not only save cost but time as well.
Even in very competitive commercial mortgage situations, borrowers may still choose a private mortgage over the bank alternative if the rates are fairly close because you add in all the costs for updated financial statements, appraisals, environmental reports, and so on, the true overall cost can become very similar.
An Etobicoke private mortgage may still be the only option for individuals with bad credit and a lack of solid historical earnings to support repayment, but it can also be the preferred option for individuals and companies that have the ability to qualify for an institutional mortgage. The choice is going to depend on the specific requirements of the borrower and the time they have to work with.
If you need an Etobicoke private mortgage, I suggest that you give me a call so I can quickly assess you situation and provide private mortgage options for your immediate consideration.
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