Private Mortgage Lenders in Thunder Bay
A Thunder Bay private mortgage lender should have a strong knowledge of the area, especially if you are using your property as collateral and will be using home appraisal to assess the value your home has accrued. Although a private lender in the area may be useful, make sure they are well connected with other lending companies as well.
Here at BSM Mortgage Broker, we are focused on getting you the competitive private mortgage lender rates you deserve, and we do that by using our strong connections with other private lending agents and privatized financial groups and companies across Canada.
Types of private lender services that BSM Mortgage Broker can offer:
- First mortgage
- Second mortgage
- Third mortgage
- HELOC (Home Equity Line of Credit)
A first mortgage is a mortgage you take out initially to pay off your home. Always make sure to make your payments on time as every month your property will continually raise in value, which can be useful when using it as collateral in a private lending loan or mortgage situation. A second mortgage is a mortgage you take out after your first mortgage and can be financially beneficial if you have a good payment plan in place. This is due to the fact you have to remember you are paying off not one but two mortgages now, simultaneously.
A third mortgage comes with some fine print and criteria including age restrictions. As well, a third mortgage can only be applied for after your initial and second mortgages are fully paid off. Always do your research when looking for a third mortgage. Although they may not be as common as they were in the past, they can be lucrative financially as interest fees and rates are designed for those who are looking to stay in their home long term.
A home equity line of credit is a very useful tool when it comes to renovation or remodeling. Like a credit card you can borrow up to a certain amount, yet if you pay it off, unlike a normal loan or mortgage, you can re-borrow again and again under the same guidelines your private lender has created for you.
Another less explored avenue regarding private lending companies is assistance with home ownership when it comes to power of sale or foreclosures. In these unfortunate events, a quick sum of money can mean the difference between keeping your property or losing it to the banks.
Equity Based Mortgage Lenders in Thunder Bay
Equity based mortgages have everything to do with the value of your property. This is why finding a lending company that knows your neighborhood and can properly assess it and your home is vital. A poor home appraisal can mean higher rates and more so the loss of potentially thousands of dollars towards your first or second mortgage.
Home appraisal is simple and works like this. Essentially when applying for an equity-based mortgage or loan, the private lender will use the value of your home to offer you a loan. How is this value assessed? Simply though the surrounding homes in the neighborhood and most importantly the amount of money you have paid off on your mortgage. This value your home has accrued is now used to offer you a loan. Home equity loans are great because you worked hard to buy and pay off your home, now it is time for your property to return the favor. For more information on home equity loans and equity based second mortgages give us a call today.
High Risk Mortgage Lending
Being labeled as a high-risk individual can be stressful. There are a number of reasons the banks will label you as such and they are important to take into account.
A few include:
- Recently divorced
- Poor credit
It seems a bit unfair to be labeled as high risk simply because you are self-employed or perhaps experienced recent marital troubles. The banks may look at this as a reason that you would not be able to make your payments on time, thus turning you down and making the loans you need unavailable.
When it comes to a low credit score, it is vital to keep in mind, while working on qualifying for a loan with a private lender in Thunder Bay, a payment plan should be put in place which may increase your credit over time, as you continue to make your payments.
Private Lenders for Bad Credit in Thunder Bay
Private lenders in Thunder Bay for bad credit can help alleviate the stress of not being able to qualify for a loan or mortgage. Being turned down by the banks can dissuade Canadian citizens from applying and trying to better their lives as a whole. Here at BSM, we are a private lending company that understand the client and wants to asses and treat your situation as unique and important.
A bad credit loan can be the first step to financial freedom. With negative financial history you can easily be turned down for anything such as a small vehicle loan or a property mortgage.
With company like BSM Mortgage Broker, that offers private lender services in Thunder bay, your bad credit loan will work as a platform to better your current credit score and remove your label of ‘bad credit’ borrower, allowing you to function and more importantly apply for loans that you need to live life normally.
Creating a working payment plan tailored to your financial situation is the first step in ensuring your loan will be paid off and in turn, will raise your credit score over time. Another idea to discuss with your private lending agent is debt consolidation. If you have numerous bills to multiple lenders showing up at your door every month it is important to consider debt consolidation in Thunder Bay, through a private lending company such as BSM Mortgage Broker. With debt consolidation you are able to make one lower payment to your lender, and over time raise your credit and remove the high-risk label. There are many different loans and mortgage routes you can take, and it is always important to know even if the banks turned you down there are other suitable avenues to look at which can help alleviate your financial stress.