Private Lenders in Toronto

Many mortgage borrowers in Toronto and the GTA are using private lenders if they are having difficulty qualifying for a mortgage with the banks due to increased qualifying measures brought in from the government mandated stress tests. Using a private lender can be a good short term choice to get the financing you need whether its a home purchase or refinance. 1st and 2nd mortgages are available from private lenders in Toronto.

A private lender will not have the same restrictions as the banks, as they are more concerned with the available equity in a property , rather than how much income a borrower has , what their credit score and history is and whether they are self employed and don’t show much income personally on their tax returns. Many private lenders in Toronto and the GTA also offer flexible mortgage terms if you need a short term solution such as a second mortgage in Toronto.

Second mortgages can have terms as short as 6 months or less , but typically have a term of 1 year. Rates can vary from 8% to 14% depending on the quality of the property, it’s location and other details of the borrower. After the term is over a second mortgage will usually be open at maturity to be paid off in full or the private lender will renew the mortgage for another 1 year term.  At this point it is also a good idea to look at the opportunity of refinancing both the 2nd mortgage and the existing 1st mortgage into a new 1st mortgage at the lowest rate possible.

Private lenders in Toronto can also offer a solution with a second mortgage if you need funds to catch up on a mortgage that is currently in arrears. Many banks and mortgage lenders will issue a power of sale notice after a few months have passed with late payments. You will need to consider a second mortgage and a private lender if you are behind on mortgage payments and want to stop a power of sale.
A mortgage broker , private lender and lawyers,  can work quickly to close a second mortgage, sometimes in less than  7 business days.