You can consider private mortgages as a type of home loan. It is an alternative source of financing that is offered to you by a private mortgage lender and are short-term with interest-only payments. Generally, the mortgage repayment period is between six months to three years compared to primary mortgages that can extend up to 10-15 years. One of the major reasons private mortgages are easily available is that private companies or individual investors do not adhere to strict lending criteria such as the stress test followed by traditional financial institutions like credit unions and banks.
Overall, it is an ideal solution for any borrower who qualifies for private mortgage lenders but may need some time to build up their credit score, save up for a larger down payment, or grow their income and net worth.
Sometimes, traditional mortgage options may not work for you; they come with strict regulations, and with changing scenarios, you may find it challenging to qualify. It is one of the sole reasons why private lenders have become so popular. This type of mortgage also comes with interest-only cash payments, and it helps increase the cash flow and offers temporary short-term lending solutions for one to three years. If you are looking for an alternative funding source in several situations when you are:
Then Brampton private mortgage lenders can be perfect for you. Get in touch with our mortgage agent at Harpreet Puri Mortgage for flexible private mortgage plans; you won’t regret it. We serve clients in Brampton and the surrounding areas.
Qualifying for a private mortgage is comparatively easier than qualifying for a traditional bank loan. Here are some factors that you need to keep an eye on when applying for a private mortgage:
The property you are getting a mortgage on should be in good condition. Consider getting it appraised by a third-party appraiser. The property condition, value and type play a role in minimizing the risk to the Brampton private mortgage lenders. Even if you have a poor credit score, your mortgage will be approved if the property in question is in good condition.
If the loan to value percentage for the mortgaged property is less than 70%, you should not face any issues in securing the mortgage. For downpayment, if the loan to value percentage is more than 85%, you must keep at least 15% of the property cost for the downpayment available. Also, if you make a larger down payment, you will be eligible for a lower interest rate.
With unconventional sources of income, you may find it difficult to get your traditional mortgage application approved; you will be pleased to know that it will not be the same with a private mortgage loan. Even if you are self-employed, a commission-based employee who reports their earnings in non-traditional ways, your application for a private mortgage in Brampton will be processed and approved.
If you want to know more, speak with our mortgage agents at Harpreet Puri Mortgage; book a free consultation today.
Have a look at some of the benefits of a private mortgage financing:
Our team of professional mortgage agents should be your first choice in Brampton when you are looking for a private mortgage.
Our mortgage agents have contacts with a large network of reputable private mortgage lenders who can help you with your loan requirements. Book a free consultation and discuss your financial needs with us; we look forward to serving you.