Ontario Private Mortgage Lending Market
“Ontario Provides A Diverse And Deep Private Mortgage Lending Pool For Residential and Commercial Applications”
One of the definite advantages of living in Ontario, especially the southwestern part of the province, is the mortgage options afforded to businesses and individuals by private mortgage lenders.
While many consider private mortgages are hard money or lenders of last resort, they do serve a definite purpose that probably should be considered more often than it is.
For instance, institutional lenders will charge very similar rates for less optimal mortgage opportunities, but also provide a more rigorous, time consuming, and costly application process.
And while most private lenders will only supply one year interest terms, there are those that will go as high as 5 years and will even consider an amortized payment where the principal balance can be paid down versus paying interest only for the entire term.
At the same time, many individuals want the one year interest term and the interest only payments as they are trying to put bridge financing in place for a transaction or financing requirement that is short term in nature. Private mortgages can be ideal for these types of situations as the time line meets the needs of both parties.
Private lenders, on average, will consider higher risk situations than traditional mortgage lenders, but that has changed somewhat as well. There are still privates that will finance property because they are comfortable with taking possession or even ownership if the borrower does not meet all their commitments. But more and more, there is a growing group of private lenders who are more focused on situations where its less likely that they will have to take back the property and there is a solid plan to repay the mortgage at the end of any mortgage term that gets proposed.
The other great advantage of living in Ontario, especially the GTA, is that virtually every area has private lender representation for both residential and commercial mortgage requirements. There is also a broad cross section of targeted private lenders that will do large volumes of certain financing applications only. The benefit of the niche lender is that they can quickly assess any opportunity that meets their criteria and they are more inclined to consider higher risk scenarios due to their more in depth knowledge of the local market and target application.
If you are trying to locate and secure private mortgage financing for a residential or commercial application in Ontario, I suggest that you give me a call so I can quickly assess your situation and provide relevant options for your 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