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If
you are in need of a private mortgage you have usually exhausted
all other possibilities. Your bank has turned you down and you
are unable to obtain financing from other sources. Typically you
will be self employed or may have had some credit problems in
the past. This does not mean you are a bad person; just that you
do not meet the stringent lending criteria of the banks.
Maybe
you are trying to buy that dream home but don't meet the banks
or CMHC's requirements. Maybe you want to buy that small cottage
in the middle of no where. Or maybe you are falling behind on
your debts and need to refinance everything to try and save your
home and stave off bankruptcy.
A
private mortgage could be an ideal solution to your dilemma.
Yes,
you will pay a higher rate of interest and yes, there will be
additional fees. Your interest rate and the fees involved in arranging
the mortgage will be determined by the level of risk involved
in the transaction. A typical borrower that is considered to be
a moderate level of risk could expect to pay a rate between 10%
and 13% and fees equal to 2% of the mortgage amount. If you are
considered a high risk borrower then you can expect to pay a little
more.
A
private mortgage may only be a short term solution. Once you have
demonstrated your ability to make your mortgage payments on a
timely basis you may be able to go back to your banker and qualify
for a new bank mortgage. Most bankers would take another serious
look at your situation after about a year. A private mortgage
may meet your needs until such time as your bank will approve
your mortgage.
If
you think a private mortgage may solve your problem, please contact
Andy MacDonald directly at 1-800-203-4711.
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