REFINANCING/ RENEWALS/ PRIVATE MORTGAGES
There are many reasons that you may want to refinance your home to enable you to take advantage of the equity that you have built up and to obtain lower interest rates on your mortgage. This process is referred to as an “equity take-out.” Regardless of your income situation or blemishes in your credit, we have lenders who lend strictly against the equity in your home. Common reasons could be:
■ Debt consolidation
■ Bridge Financing
■ Second properties
■ Home equity lines of credit available
■ Revenue Canada arrears
■ Investment or retirement planning
■ Home renovations
■ Unexpected expenses
■ Alternative mortgage solutions
■ Refinance to a maximum of 80% of the value of your home, renovation loans with multiple advances are acceptable (maximum 4 advances).
■ Maximum 4 units and 1 unit must be
I can work out all the calculations and let you know what interest rate you can expect to receive, the monthly payment and how much money you should save on a monthly basis.
Typically when you receive your renewal documents from your lending institution, they will not quote you the best rate available. They hope that you will just sign and return the renewal forms and be done with it. Now, is that any way to treat a client? I can switch your mortgage to another lending institution at the best-discounted rates at no cost to you. As your mortgage is now considered “fully open”, there won’t be any penalties.
Make sure you take care of your finances and get the great rate that you deserve.
WHAT IS A PRIVATE MORTGAGE:
You need to consolidate your debts but you are not showing any income or your credit rating is so poor that none of the financial institutions will lend you the funds. Our best option may be to borrow the money from a private person that lends their monies in the form of private mortgages. That is someone like you or I that is looking to receive a higher rate of return on their investment. The rate is definitely higher than 1st mortgage rates but definitely nothing close to what you are paying on your credit cards. Your interest rate is based on the risk involved. Call me with your details and I can give you a quote on the cost of the financing.
When dealing with a private mortgage, the capital is not borrowed from a financial institution or a bank. The money is borrowed from an individual or a corporation.
That is why before investing in a private mortgage you should consider the following:
■ A private mortgage should always have proper documentation. Put together the loan agreement in a way that it will always protect the interests of both parties, which includes the lender and borrower.
■ For paperwork use the help of a lawyer, your tax accountant or a mortgage agent with experience who can help you with the process. There are websites that also provide information on how to make contracts for private mortgages. It is a good practice to research these sites and use them as a guide to assist you in preparing your mortgage agreement.
■ Include every aspect of the deal in the mortgage agreement ie when payments are to be made. What happens if or when payments are not received on the specified date, where and how are payments to be made, is it possible for the borrower to repay any portion of the mortgage with or without a penalty.
■ It is a good practice to secure the loan using assets that are worth the loan amount especially if the loan involves a friend or a family member. By doing this, if you happen to run into other difficulties with finances, the property or asset will have a lien on it and creditors cannot go after it.