What is a private mortgage?
A private mortgage can be used by borrowers when a traditional bank or lending institution refuses to offer them a mortgage or refinance loan. They typically last for six months to three years, and are usually interest-only loans.
Many banks and other traditional lending institutions reject perfectly capable borrowers who cannot meet their strict guidelines. Rather than focusing solely on the borrower's credit score and income, private lenders pay more attention to the value and condition of the property. 3 Types of private lenders1. Corporations that invest in mortgages, also called mortgage investment corporations (MIC).
When a group of individual investors pool their personal funds, mortgage investment corporations are formed. As opposed to investing in one mortgage at a time, mortgage investment corporations invest in multiple mortgages simultaneously. 2. Syndicate investors are also known as private mortgage companies. A syndicated mortgage is created when a group of investors pool their own funds into one mortgage. 3. Individual private lenders Individual lenders are those who invest their own money in private lending. Reasons to work with a private lender: There are many reasons why people choose to work with a private lender or a private lending company. Among them are:
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We will guide you throughout every step of the application process and make sure you get funded on time along with the best rate either with a private mortgage lender or a traditional mortgage with a bank
Toronto Private Mortgage has helped many Canadian residents and businesses
reach their dreams and goals
How to build Credit
A low credit score is not the end of the world; most situations relating to credit can be redeemed and fixed fairly quickly. Now a days there are credit building credit cards that do just that, build credit. The two most critical aspects of building credit are not missing payments and having a low credit utilization. Maintaining a zero balance on a credit card is also vital for improving credit scores. In other words, as soon as you make a purchase with your credit card, you must pay for that purchase within the same day or at the latest the next day. Once a month, credit bureaus such as Transunion or Equifax take a snapshot of your credit score. In order to build credit, you should never spend more than 30% of your credit limit. You should also make the payments the very next day. This will ensure that when the credit bureau records your credit usage for the month, it is at the lowest possible level, never exceeding 30% of your credit limit. Your credit score will increase rapidly by using this technique and before you know it, you'll have your desired credit score. An established credit history also boosts credit scores. To prove to credit bureaus that you are in it for the long haul, it's imperative to establish trustworthiness. Having a long credit history and keeping a low credit utilization will dramatically improve your credit score. When there is proof of timely repayments and a long credit history, credit scores will be at peak. Following these simple rules will without a doubt increase anyone's credit score.
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Advantages of using a mortgage broker
Canadian private mortgage brokers are certified and licensed to offer expert advice and guidance in all aspects of mortgages. Having access to all of the lenders in our portfolio enables our private mortgage brokers to provide our clients with a customized solution in a timely manner. If you are shopping around for a house and you don’t have an established relationship with your bank or feel like the rate offered is not the lowest available on the market, perhaps it would be a good time to seek out one of our mortgage brokers. At Toronto private mortgage, we have access to over 200 different mortgage programs to help our clients find the best traditional mortgage at a bank and or private mortgage at the lowest available rates on the market. Our proven methods and connections have helped save our clients a tremendous amount of money and time when seeking a mortgage. Instead of chasing different lenders individually and getting overwhelmed by complicated loan offers, you get to sit back relax and let us simplify a complicated process for you. Our Mortgage agents will work with you to compile all the necessary documentation required and share only the required information for the application and underwriting process. |
What can a mortgage broker provide?
The benefit of working with a mortgage broker is: For clients who are prequalified at banks, we are able to get them even lower rates than most banks offer through our expertise and ability to shop around and through the relationships we have built with banks and private lenders over time. A network of traditional and private lenders allows us to offer our clients a variety of mortgage products. A mortgage broker has access to a variety of mortgage products compared to banks that only offer a limited number of programs only specific to one bank. Using a mortgage agent/broker also reduces the client's mortgage-related fees. Aside from these important facts and issues a mortgage broker can make the whole scenario, which is often a stressful one a whole lot easier and stress-free for the client. Mortgage agents handle all of the legal aspects involved with mortgages and always have the client's best interest at heart. A mortgage agent's reputation lies in the hands of the client. The mortgage agents and brokers at Toronto Private Mortgage offer insight and expertise in all areas so the client can have a memorable experience and tell our story for years to come. We believe the most important aspect in acquiring clients should be based on past client experiences and a word-of-mouth referral. That is the key to building solid friendships. We will guide you through the entire application and underwriting process and work closely with all parties involved. To ensure the mortgage closes on time, it is important to stay connected and communicate with the underwriter, real estate agent and lawyers involved. Over- communication is key to making sure all the right information is obtained and executed in order to close on time. |
When do I need a private mortgage?
If you have a credit score below 600, you are more likely to turn to private lenders more so than to banks or B-lenders. Lenders use your credit score to check what shape your financial health is in. A good credit score will qualify you for most mortgages. As long as the loan amount is secured by a property or land, private lenders rarely ask for credit scores or proof of employment. The majority of people turn to private lenders as a last resort when they are trying to secure a property. Private lenders are becoming a more popular option for homeowners and for real estate in general. Since 2019, private lending has grown by 37% year-over-year to $48billion according to Statistics Canada. Private mortgage lenders are usually more interested in how much equity exists in a home than what your credit score might be. Once approved and funded by a private lender, it's vital to make your mortgage payments on time to increase your credit score so that you can qualify for a bank loan or a B-Lender a short time after. Private mortgage lenders have the ability to report you to credit bureaus such as Equifax or Transunion if you were to stop making your mortgage payments. Following a regular payment schedule and increasing your credit score will lead to being qualified by a bank with a much lower rate. |
Closing Loans - Opening Doors
Our Services include and are not limited to:
Whether you need a traditional mortgage loan from the Bank or a private mortgage from one of our partner Private Mortgage Lenders, we will provide you with friendly and expert advice and guide you towards obtaining your desired mortgage. |
We work for you!
Our private mortgage brokers and mortgage agents at Toronto Private Mortgage work directly for you and for you only. We will guide you throughout the entire mortgage process. Our goal is to provide an unforgettable experience for our clients. It is understandable that applying for a mortgage can seem invasive and uncomfortable, especially for first-time home buyers. It has been our pleasure to make our clients feel at ease by always having their highest interests at heart. We will not rest until all your mortgage needs have been met to the last detail. Toronto Private Mortgage prides itself on offering clients a customized solution to all their mortgage needs. Our private mortgage agents will find the most suitable option for you, whether it’s a traditional mortgage from the bank or a private mortgage loan. |
We will get you into your desired home!
You can count on us to assist you from the pre-approval of your loan to the closing of the mortgage loan. We will make sure that you have all the information, tools, and connections to ensure a smooth closing. It is challenging to compete with high bidders and cash buyers in most real estate markets, especially in a hot market. You need not worry, we can tip the scales in your favour due to our experience and connections. Our team will verify and process your information in a timely manner and confirm your purchasing power. Once verified, you will find it much easier to make an offer on the house of your dreams. Things to remember:
When talking to your mortgage broker, always be truthful and never hide information that is crucial to your application. If you move forward with your application, all of your information will eventually be available to the majority of private mortgage lenders. If you withhold important information, it can work against you. You should always disclose any additional properties or any debts in arrears since these things will appear on your credit report. When you work with Toronto Private Mortgage, you are working with mortgage brokers and agents who truly care about you and will work on all hours of the day, including on holidays to close your mortgage and provide you with funds as soon as possible. |
We are only at the beginning of our journey to home ownership and financial freedom. In addition, we believe our true value to you will only be uncovered after we have already started. In the course of your new mortgage term, we will regularly update you and provide you with educational tips and advice to help you build wealth with real estate.
Your mortgage is periodically monitored to ensure that it is the most cost-effective solution for you throughout your term. We will contact you if there is a way for you to save money or benefit from a change in the policy.
Having a passion for helping Canadians build wealth through real estate is truly the best part of what we do.
If you think that a friend or family member could benefit from our services and advice, we would gladly help them in any way we can. Helping people into a better future is truly our Passion.
Your mortgage is periodically monitored to ensure that it is the most cost-effective solution for you throughout your term. We will contact you if there is a way for you to save money or benefit from a change in the policy.
Having a passion for helping Canadians build wealth through real estate is truly the best part of what we do.
If you think that a friend or family member could benefit from our services and advice, we would gladly help them in any way we can. Helping people into a better future is truly our Passion.
Our business is built on friendship |
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We know how hard life can be, so we want to help. If you were rejected for a mortgage recently and are in need of emergency funds quickly - just contact us at Toronto Private Mortgage! We have the right team on board that will work with your unique situation within 48 hours or less* (*depending upon specific circumstances). You deserve quality service, which is why our professional staff provides only high-quality products tailored specifically towards meeting each client's needs as best they could ever hope for.
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