Private Mortgage Lenders in Kitchener

Our private mortgage lenders are ready to help you obtain that Kitchener second mortgage to buy the property you are interested in. Understandably, the major Canadian banks are putting citizens through the ringer when it comes to applying and qualifying for a mortgage.

Whether it is the near perfect credit score necessary, or a need to pass the Stress test, the banks are making it harder and harder to get the money you deserve. With private lending, it is easier to obtain that loan or mortgage.

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The real question arises, why one should use a Kitchener private mortgage lender. Ideally this is a situation where the borrower is trying to perhaps purchase something unusual or does not or cannot wait for the usual slow approval process which could take months. As well, a private mortgage lender can assist with a short-term loan, and the process is usually much quicker than when working with the major banks. Let us show you there are still options when it comes to obtaining a loan or mortgage of any kind.

Equity Mortgage Lender

When a lender lends money on equity, he or she is putting up the sum against the value of your home. This is why it is very important to have a professional licensed agent who knows your area and neighborhood. Having that knowledge may increase the value accrued by your property since your purchased it and began to pay off your mortgage.

Understanding home equity is simple. This specific equity is the difference between the total value of your property and the amount of your mortgage you have already began to pay off. Since there are two main factors in increasing one’s home value, it is important to keep in mind the loan you secure is through your house and the value it has obtained.

The two main factors are:

  • Increase in area or personal property
  • Continuous ongoing monthly payments made towards your mortgage

These factors are important because they are components in achieving a higher property value, which can be useful if you are planning on obtaining an additional loan or even a second mortgage in the future.

One of the biggest developments lately is clients who are using their first loan to improve their property and in turn create more value for their second upcoming loan. This is just one of the many ways to use your new found sum of money and here at BSM Mortgage Broker we are happy to show you all the ways you can use your mortgage including paying off student debt, taking that dream vacation or finally buying that boat or recreational vehicle you’ve always wanted. Obtaining a loan or mortgage can be a great first step to achieving more freedom and being able to live life on your own terms.

There is also another option when it comes to your equity, and that is a line of credit. A Home Equity Line of Credit, otherwise known as a HELOC, is useful because the borrower has a sum of money they can borrow, but they can also pay it back and borrow it again, similar to a credit card.

Working with the right agent means arming yourself with all the knowledge needed to get the lowest rates and make the most out of your loan or mortgage. Creating sub-accounts within your line of credit may be useful if you are looking to pay off any type of vehicle loan, credit cards or personal payments. In the right case, a HELOC can be used in lieu of a first or second mortgage. For more information on this and the correct first steps for you and your family, contact us today.

Private Mortgage Lender's Rates in Kitchener

Shopping around for the best mortgage rates is the first step in finding the right agent for you and your unique situation. Mortgage Rates across Canada can be as low as 5.6% and can go higher than 13% depending on your situation. There are many different types of situations including bad credit mortgages and home equity lines of credit. It is important to know all the different options when it comes to your potential loan, and this is why finding the right private lender to work with is a vital first step.

Second mortgage rates can be even higher and there are many different situations where your private lender in Kitchener can be amicable to lowering your rate, dependant on your property’s value and more. Furthermore, there are secured and unsecured loans and it is important to know the difference, as unsecured loans will have a much faster approval rate but secured loans and HELOC’s of that nature are secured against your property and your financial valuables, which usually means your private lending company or agent can offer you a potentially lower rate than usual.

Private Lenders for Bad Credit

Don’t let bad credit stop you. As a private lender, BSM Mortgage Broker can show you there are still ways to qualify for a loan or mortgage, especially with bad credit. Even if you have bad credit, that does not mean you should settle for any agent or private lending company that comes up. Certain private lenders will specialize in different aspects of loans and mortgages and it is important to find the right fit for you. Some examples of areas your personal private lending company may work in are debt consolidation, commercial real estate as opposed to residential, or vice versa, and much more.

The key factor is understanding that a private lender may only be knowledgeable in the area he or she resides in, so if you are looking to buy a second property further outside of your normal rural parameters, it may be pertinent to check out private lenders within the new area you are planning to purchase a property in. This could end up saving you lots of money down the line, and also potentially lower your interest rate and overall mortgage fees.