“Ontario Hard Money Loans From Private Mortgage Lending Sources”
Ontario hard money loans are another name for private mortgage lending.
The term hard money comes from the perception and reality that private mortgage lenders are many times lenders of last resort, providing financing strictly based on the available equity in a real estate property. Because there may not be any other financial pluses to the potential deal (decent credit, reasonable debt load, enough income to pay the bills), the private lenders know going in that there is a good chance that the borrower will not be able to repay the loan and if this occurs, they will have to move swiftly to foreclose on the property in order to be able to get back the funds borrowed plus any payments outstanding.
So the lender has to take a very hard approach which lends to the expression hard money… or at least that’s my take on it.
Regardless of what you call it, private mortgage financing is an key component to the mortgage lending spectrum providing a valuable and needed funding service to those with bad credit, situations that require a debt consolidation, or a need for funds for some other purpose quickly.
The most common form of Ontario hard money loan is a private second mortgage on a single family residential home. These loans are typically less than $100,000 in size, reducing the risk of loss to the lender, and will typically not exceed a total loan to market value on the property of 75%. There are exceptions both ways to this general rule depending on the property and the lender, but for the most part, very high mortgage ratios are going to be hard to secure because of the inherent risk of default.
The average hard money loan against real estate property is for a one year interest term whereby at the end of the year term, the mortgage has to be repaid, or if an extension is granted for an additional one year period, the lender will likely require a renewal fee.
If you require an Ontario hard money loan or would like to know more about them, please give me a call so I can quickly assess your requirements, get all your questions answered, and provide relevant private mortgage financing options for your immediate consideration.
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