JESSE BRUN

Private lenders in Ontario mostly offer private mortgage loans using mortgage agents. To get approved by a private lender in Ontario a person needs to have a fair amount of equity in their home or a big down payment (if purchasing). Private lenders who lend in Ontario will usually provide short-term mortgage financing for 1 or 2 years until the person can be approved by a bank, etc. Most private lenders will borrow up to 75% of the value of the property being used as security if the property is located within a major city (private mortgages will usually not exceed 75% of the value of the property unless the property is located in a city with a population of over 450,000). Private mortgage lenders normally prefer to provide financing for properties which are located within city limits however some private lenders will borrow in small towns or rural areas as well. The lender may only borrow between 50 to 65% of the value of the property when financing outside of the city especially in very rural areas.

Private lenders focus on the equity of the property instead of focusing on a person’s credit history, income, etc. This is why private mortgage financing is also known as equity lending. Getting a private mortgage can be very beneficial and crucial in some situations. Private financing is often used to pay off judgements against property, settle income taxes owed, stop foreclosures, pay off major collections, renew mortgages, pay estate settlements, complete commercial projects, and more.

Benefits of Using Private Mortgage Lending in Ontario:

1. Flexibility in Approval:

Private lenders in Ontario, are known for their flexibility in approving loans. They often consider a broader range of factors beyond just credit scores, such as the value of the property and the borrower's overall financial situation.

2. Quick Processing Times:

Time is of the essence in the real estate world. Private lenders are renowned for their ability to process loans swiftly. This can be a game-changer in Ontario's dynamic property market, allowing buyers to seize opportunities without waiting for lengthy bank approval processes.

3. Tailored Loan Solutions:

Private lenders often provide more personalized and tailored solutions. This flexibility extends to the structuring of loans, enabling borrowers to negotiate terms that align with their unique needs and financial goals.

4. Access to Unique Properties:

Ontario has a diverse real estate landscape, and private lenders can be more open to financing unique or unconventional properties that might not meet the criteria of traditional banks.

5. Negotiation Power:

Private mortgage lenders are more open to negotiation. Having a mortgage agent negotiate on your behalf can secure better terms, potentially saving you money in the long run and getting  the mortgage structured in the best way for your scenario.

Scenarios Where Private Mortgage Lenders Shine:

1. Credit Challenges:

If you have credit challenges, private lenders in Ontario, can be more understanding and willing to work with you. They often focus on the value of the property and the potential for return rather than the credit scores. Private lenders are equity based lenders in general meaning they focus on the equity in the home being their main security as opposed to a persons credit. This is the main reason why private lending has become so popular in the last 10 years.

2. Self-Employed Individuals:

Traditional banks might be cautious when dealing with self-employed individuals due to irregular income patterns. Private lenders are often more open to working with entrepreneurs, considering the broader financial picture. Private lenders don’t necessarily need any proof of income and some private lenders will lend even when a borrower has no income whatsoever.

3. Quick Real Estate Transactions:

In a fast-paced market, speed is crucial. Private mortgage lenders can often process loans more quickly than traditional banks, making them the go-to choose for those looking to close deals swiftly. This is another reason why private lending is in high demand.

4. Unique Properties or Renovations:

Ontario has its share of unique properties. Private lenders are often more open to financing these, as well as renovation projects, providing funds where traditional banks might hesitate.

5. Investment Properties:

Investors often turn to private lenders for financing investment properties. The flexibility and speed of private loans can be advantageous when navigating the complexities of the real estate investment landscape.

6. Stop Foreclosure or Power of Sales

Some private lenders will lend money to borrowers who are facing foreclosure or power of sale because the lender is focusing on the amount of equity in the home being the security of his investment. Private lenders will sometimes also lend enough money to cover the mortgage payments for the whole duration of the term hence the private lender doesn’t have to be concern about the borrower not making his mortgage payments since the mortgage payments have been prepaid using the private mortgage funds. 

Choosing the Right Mortgage Agent in Ontario:

While the benefits of private mortgage lenders are clear, the role of a skilled mortgage agent is equally crucial. Especially when dealing with scenarios like construction loans or unique property financing, having a mortgage agent who understands the intricacies of the Ontario market can be a game-changer.

Ready to Explore Your Mortgage Options in Ontario?

Considering the evolving landscape of real estate financing in Ontario, and the myriad benefits offered by private mortgage lenders, now is the perfect time to take the next step. Contact our office for an immediate free consultation with no obligation. Our expert mortgage team is here to guide you through the process, ensuring you make informed decisions and secure the best possible terms. Don't miss out on the opportunities waiting for you in Ontario's vibrant real estate market. Let's turn your real estate aspirations into reality.

If you’re looking for any kind of mortgage financing, I would be happy to help you by answering any of your questions, analysing your situation and then providing you with the best options for your situation. I’m here to help you and your financial situation is important to me. Please do not hesitate to contact my office anytime at 1(888)878-4660 or please fill out the very short application form above my website. This will allow me to start analysing your scenario and get back to you as soon as possible. Thank you very much for considering my services and I look forward to helping you soon!
 
Jesse
Mortgage Agent
1(888)878-4660
homeloans@jessebrun.com