Private Mortgage Lending in Saint John
“Let Us Provide You With Saint Mortgage Lending Option On Your Real Estate Property”
Saint John private mortgage lending sources are typically individuals, small syndicates of private investors, or formalized mortgage investment corporations that place their investors money into private mortgages.
Each lending source will have their own criteria to a certain extent as well as appetite for different types of deals, but there are some general trends that you can expect regardless of the private mortgage funding source.
First, most Saint John private mortgage lenders will lend in a range of 50% of the fair market value of the property to 65% of the value of the property. To be clear, the average will fall in this range. That being said, there will be exceptions that fall out of both ends of the range based on the strength or weakness of any particular application and property type and profile.
With private mortgage lenders in the Saint John area, expect the interest rate to be no lower than 10%, again on average, on first mortgages with higher rates on second mortgages. Mortgage payments are typically going to be interest only and the mortgage term will likely not be more than one year, again in most cases. If a borrower is extended for more than one year, there will likely be a renewal fee required as the private mortgage lender will receive fees on closing for any new mortgage. So if the private lender can’t place a new mortgage at the end of the term, it only stands to reason that a renewal fee will be required, otherwise he or she will likely require a timely payout of the mortgage so the funds can be invested in other mortgage opportunities.
Private money, or hard money loans as some choose to call them, are not cheap by any stretch. But compared with the alternative of not being able to come up with the money required, the cost can end up being a bargain in many cases. Saint John private mortgage lending is going to be required by individuals with short term needs where it may not even make sense or there isn’t sufficient time to go to a a bank. This is really a form of bridge financing that is available to anyone with equity in a residential or commercial real estate property.
If you require Saint John private mortgage lending, please give me a call so I can quickly assess your requirements 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