How Private lenders can help the needful in testing times?
Private lenders Toronto can be of great help for you in the testing times. Mostly, a private lender can be a family member or any of your friends who leads you in your hard time. Most of the banks are a traditional source of financing and work on strict guidelines for lending;hence, they limit their ability to finance under certain scenarios pertaining to borrowers’ profile. Looking out for private mortgage lenders Toronto is hence beneficial since they do not have strict guidelines. Moreover, seeking private mortgage loans have an easy process and save a lot of time.Though, the rate in this case is relatively higher than the bank rates, still a majority of people prefer opting private mortgage loans due to its easy accessibility.
Few situations where a borrower needs private mortgages:
- Financing for renovation and construction
- For individual who can’t prove their basic income
- Individual who have property tax or income tax arrears
Private lender’s loan flexibility
Usually, bank loans take 45 to 90 days to fund, while in case of private mortgage lenders Toronto, once can easily gain access to the loan within 10 days. It is up to the private lenders to decide whether bank authorities may take a month. Furthermore, easy application process is another important aspect of private mortgage. A borrower can use private money loan for many purposes, such as for refinancing an existing mortgage or for purchase more property. In addition, private mortgage lender also benefits from the exit strategy of borrower because the latter should have a detailed and well thought out plan to repay the entire amount of loan in a year or less.
Types of loans that private lenders can provide
- Home equity loan: It allows the owner to borrow money against the equity in the home.
- Bad credit mortgages: This product is especially design for the people having bad credit rating.
- Private mortgage lending: In this, the lender is not any financial institution but rather a business or an individual.
- Debt consolidation: It eliminates the need for multiple payments and deadlines, lowers down interest rates, and reduces monthly payment.
- Emergency mortgages: It is a short-term loan designed to provide quick in the event of emergency.