Latest Mortgage Rates
|Updated March 25, 2016||0.0 %||0.0 %|
|Variable ARM||2.15 %||2.8 %|
|1 Year Closed||2.29 %||3.09 %|
|3 Year Closed||2.49 %||3.19 %|
|5 Year Closed||2.49 %||3.29 %|
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Private Mortgage Lenders in Ontario
A private lender will NOT give you up to 100% financing at all! Despite what many people may seem to think. Private lenders will give less than what a financial institution will give with good credit. Privates lend based more so on the equity in the home , this is why they are able to give financing with bad credit. They will also give you a higher interest rate and charge a lender fee. We as a broker must charge broker fees as well since we do not get paid by the lender. If your living in the greater toronto area we may be able to get you up to 85% of your homes value even with bad credit. If your outside of these areas then a private may only lend up to 75-80% of the value. So if your purchasing a home and need private financing, you will need to have a large down payment, approximately 20% down payment may be needed.
Most mortgage brokers only have access to about 40-50 lenders. Thanks to all our private lenders we have access to well over 100 lenders. Trillium mortgage has a large amount of private mortgage lenders in Toronto. These private mortgages can be arranged for up to 85% of the value of the property with little or no income verification. Even with bad credit or recent bankruptcies.
Private mortgages are a great way to obtain financing when everyone else rejects you. They dont have as strict guidelines, unfortunately these come with higher interest rates but sometimes paying this for a few years until you can improve your credit can be a great solution.
Why should you use a private mortgage lender:
- You’ve recently lost your job and you need a mortgage while you are in between jobs
- A recent bankruptcy is restricting you from obtaining a mortgage from an instituational lender
- Your TDS (Total Debt Service ratio) is too high but you do not want to lose your house
- A recent divorce, judgment or life event has dramatically affected your credit rating
- Lower income has impacted your qualification ability
- To purchase land with less than the traditional 50% down
- To get out of a pending power of sale or foreclosure
With Private Financing keep this in mind:
-When purchasing, you will need a larger down payment when dealing with private lenders because they lend more so on the equity in the home. This is why they can lend knowing that you have bad credit. With refinancing or getting a second mortgage you will have to have enough equity already in the home.
-The rates will be higher but the terms or shorter, this way if your credit improves after a year or two you can try to go back to a bank and get lower rate financing.
-You will more than likely need to get an appraisal done by an approved appraiser by the private lender. Usually a good idea to wait until you have a lender lined up to get that done. If you get an appraisal and if its not done by an approved appraiser by that lender then you may have to get another appraisal done.
-You will have extra fees. The lender will charge a fee along with the brokerage fee. The broker does not get paid by the lender. You will have to pay all legal fees to register the mortgage as well. Fees are different for all lenders. They range from 1% and up. Fees charged by the brokerage depend on how hard it is to get the financing needed. This is quoted before you decide whether or not to get the mortgage offered.