7 Reasons to Use a Private Lender for Purchases & Refinances
This post is written by Trusted Partner, Keith Uthe of Enrich Mortgage Group. To become a contributing editor, please contact our Real Estate Investor Solutions Specialist, David Maxwell at firstname.lastname@example.org.
With the changes in lending rules, the need for private lenders is increasing exponentially. With many of them now offering lower rates and unique financing programs, homeowners and investors are increasingly tapping into these solutions as part of causing and creating their future wealth. To get you a mortgage product that works for you and your unique requirements, Keith Uthe Demystifying Mortgages shares seven reasons to use a private lender for purchases and refinances.
We are offering lending options up to 95% loan to value property owners. They can use these equity lending solutions for debt consolidation, purchases, and investments. With limited properties available and home values increasing extremely fast in Toronto and Vancouver, private lenders are offering the solutions that borrowers need.
Benefits of going private:
1. Quick turnaround time – Commitment letters are usually sent out the day of or the day after receiving an application. Once all documents and appraisals are received, you can receive the funds in as little as a week’s time.
2. Unique income situations – Private lenders are able to qualify borrowers in many unique income situations, including those that may be newly self-employed, get commission income, are newly employed, and many others.
3. Debt consolidation – Access the equity in your house to pay down high-interest credit card debt. Amortizing it for over twenty-five to thirty years will help provide payment relief. It can also help payout consumer proposals or bad debts to get a head start on fixing up your credit.
4. Multiple rental properties – Most private lenders have no limit to the number of rental properties you can use. Some even have unique investor programs for Flips and BRRR’s that consider purchases with as little as $10K down payment.
5. Corporate borrowers – Most private lenders are able to issue mortgages in the name of a person or a corporation. This allows the borrower the flexibility they need
6. Commercial lending – In addition to residential properties, many private lenders are also able to lend on retail, office, and industrial properties.
7. Common sense lending – Every situation is unique. If there is a story that justifies your loan, we want to hear it. The more we know, the better we can select the right lender and ensure there are no surprises for them.
Many borrowers are concerned with paying the high-interest rate of private lenders, however, when compared to interest rates of credit cards and lines of credit, they not only lower payments they also save the borrower money. The actual question is, what is the cost of not using a private lender solution, and is it worth it? Additional questions you should ask are, is this the best solution for me? When can I pay out the private loan? How much will I save? What will it cost me? etc.
Answering these will help you get a clearer picture of what you should do to get a good deal on your mortgage. The cost of private lending varies from lender to lender, however, expect that you will need to pay the lender’s fee, legal fees, and a broker fee.
If you are looking for a mortgage broker/specialist, Keith Uthe is able to work with clients across Canada, and is located in Calgary, Alberta, reach out to me. As an independent mortgage specialist with Mortgage Alliance Enrich Mortgage Group, Smith Manoeuvre Certified Mortgage Professional, and a Legacy Certified Financial Life Planner in Calgary, my daily objective is to fulfill my personal life vision that ‘everyone is living a life of abundance.’
My experience, training, and knowledge as a Smith Manoeuvre Certified Mortgage Professional, Real Estate Investor, Certified Real Estate Investment Adviser and Mortgage Associate all play a part in what I give to those that I work with. Whether you are a first-time homebuyer, buying your next home, or seeking to refinance I have many mortgage solutions for you to consider.
I offer services like first-time home buyer mortgages, mortgage refinances, switch/transfer mortgages, debt consolidation mortgages, etc., to clients across Canada. To learn more about the services I offer, please click here. To get in touch with me, please click here.