Quick Mortgages Are Private Mortages
“When You Need a Fast Closing, an Interim Mortgage, Or a Bridge Loan on a Property Deal, The Best Form of Quick Mortgage is a Private Mortgage”
There are times when you need a mortgage quick.
It may be interim financing or maybe a bridge loan. It can happen when you are short on time and cash. A family member may be in a bind and asks for an unexpected favor, or maybe other options have been exhausted.
Maybe you have bought an investment property, such as a condominium, and your financial situation has changed.
This occurs often; the closing of a new condominium can take three to four years time from the offer to construction, registration and closing. During that time your financial situation could be completely changed. Employment situation, more debt or maybe a divorce or separation could have occurred.
Regardless, you are legally obligated to close the transaction. On the positive side, the condominium has increased in value. You may want to quickly resell the condominium once you close it.
Unlike the usual mortgage application which require a lot documents that need to be authenticated and which take time to be processed, private mortgages can be can be approved and closed in a few days.
So what are some other advantages of a bridge or private mortgage?
You can be provided with an open mortgage. This way you have more options available to you once you close. A quick sale can happen and the mortgage can be paid off without a penalty. (keep in mind the rate will be higher than bank rates, but since the mortgage is usually for a short period, the costs still make sense).
Another advantage is the possibility of 90% or 100% financing. Private mortgages are usually approved with a ‘make sense’ approach. A lender may lend you a full purchase price of $200,000 on a condominium that has increased in value to $300,000.
There is the advantage of a quick answer is quite valuable at times. Sometimes you can call us in the morning and have a commitment in your hands by the afternoon.
We’ve done deals where a conventional lender has pulled the commitment on the day of closing.
An instance of this was a purchaser that elected to close in a corporation. The bank would not fund because of that and quick bridge financing needed to be arranged. We approved the deal on the same day and closed it a few days later.
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