mortgage denied by banks?

Private Mortgage

victor camba b.eng, mortgage broker

direct line 416-435-8340

Get approved for a private mortgage, regardless of your occupation, income or credit.

Fast, easy and hassle-free process.

Your best source for a private mortgage

To obtain a suitable private mortgage requires expertise and well-established connections with private mortgage lenders. As a mortgage broker with over 20 experience, I have successfully helped many homeowners obtain the money they need, as quickly as needed, with a private mortgage. You deal directly with me, not with a random inexperienced “agent” from a call center. Click here to read my professional bio.

Watch this video from my YouTube channel, where I discuss how I am able to help homeowners get money in as little as 24 hours.

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How I help homeowners in tough situations

I am able to help clients in tough situations because I offer unparalleled access to direct funds from a vast network of private lenders. More importantly, I take the time to understand your situation and challenges, so that you get a customized solution that’s right for you.

Why get a private mortgage?

Chances are your mortgage application was denied at a bank, or a mortgage agent has made you aware that a private mortgage is most likely a better solution. Perhaps you were turned down because of poor credit history, self-employed or irregular income. Or perhaps you need the funds immediately and the banks are unable to fund on time.

Regardless, you still need a mortgage. A private mortgage could be a good solution. For instance, a private mortgage can help you complete the purchase of a property when bank financing falls through at the last-minute. Also, a private mortgage may be a good option if you plan to sell your home, but want to first renovate the kitchen and bathrooms to increase its value. Or perhaps you have a large debt with high interest credit cards. In this case, consolidating all the debt into a lower monthly payment can improve your monthly cash flow. Whatever the case may be, I have you covered.

You qualify based on your home equity

Unlike the banks, regardless of your income or credit, it’s your home equity that gets you approved. Your home equity is the value of your home less any mortgage balances owing.  Borrow up to 80% of the current value of your home as a first private mortgage or up to 85% as a second private mortgage.

Service Areas for a Private Mortgage

Serving Toronto, Brampton, Mississauga, Richmond Hill, Newmarket, Aurora, Barrie, Markham, Vaughan, Simcoe & York Region.

What is a private mortgage?

A private mortgage is a short-term, interest-only loan that is secured by the equity value in your home. Also, it is commonly referred to as a first or second mortgage. It can be provided by an individual or a non-bank lending institution. Because of this, no two private mortgages are the same! This is why it’s important that you discuss your needs with an experienced mortgage broker.

Qualifying: Banks vs Private Mortgage Lenders

Why is it possible to get a private mortgage when you’ve been declined by the banks? The banks are regulated to adhere to strict lending guidelines. The 3 most important factors for banks are: your income, credit score and history, and your ability to service your other debts, such as credit cards and car loans.

On the other hand, although some private mortgage lenders are concerned with the same 3 factors, it is to a lesser degree. Most lenders are mainly concerned about the equity value of your property. Your equity value is the value of your home less any existing mortgages. The more equity you have in your home, the less risky the loan is to the lender. Hence, the higher the likelihood you’ll be able to get a private mortgage at a reasonable rate.

How much can you borrow?

The amount you can borrow as a private mortgage will largely depend on 2 criteria. Firstly, the loan-to-value (LTV) ratio. This ratio tells the lender how much equity value is in your property. To calculate the LTV, divide the total mortgage debt by the value of your home. You can borrow up to 80% of the current value of your home as a first private mortgage or up to 85% as a second private mortgage.

The second criteria is the type, condition, and location of your property. Higher mortgage amounts can be obtained for homes in good condition that are located in populated cities. Lower amounts are available (if possible) for rural or homes kept in poor condition.

Can you borrow more than 85% LTV?

You may see ads or promotions from inexperienced mortgage agents stating they lend up to 95% LTV. There are very few private mortgage lenders who lend above 80% LTV on a first mortgage, and 85% LTV on a second mortgage. This is because exceeding these ratio thresholds carries a big risk to the lender and the borrower.  Rates and fees are significantly higher, which may not serve the best interest of the borrower. A borrower may end up owing more than the actual value of the property, resulting in financial disaster. Hence, a private mortgage above 80-85% is not recommended.

How long does it take to get approved?

It depends on the complexity of the mortgage request. In most cases, you can get a same-day approval. For more complex situations, such as construction financing, it could take a few business days.

How fast can you get a private mortgage funded?

Unlike banks that can take 3 to 8 weeks to fund, a private mortgage can be typically funded within 3 to 5 business days. For urgent needs, it may be possible to receive your money within 24 hours.

A private mortgage is only a short-term solution

You have a short-term problem. A private mortgage is meant to be a short-term solution. This is why it’s very important to have a clear exit strategy. Examples of an exit strategy are, by the end of the mortgage term: refinancing with a bank or B-lender, renewal of the mortgage, repayment of the loan, or the sale of the property. For example, if a low credit score was preventing you from obtaining bank financing, we can work on improving your credit score over the term. So, by the end of the mortgage term, you will be in a better position to refinance with a bank. As a mortgage broker, it is vital we discuss and prepare an exit strategy plan to ensure a private mortgage is right for you.

What is the mortgage rate for a private mortgage?

Private mortgage rates can vary widely from lender to lender. As discussed above, no two private mortgages are the same. Private lenders set the rate based on their lending criteria and the risk they are willing to tolerate. This means that the rate cannot be determined until these criteria have been properly assessed. (Side note: any mortgage broker who is able to provide a quote instantly, is only guessing. Rates are not final until it is written into a mortgage commitment letter). Rates on a first mortgage can vary between 6 – 10%. On the other hand, rates on a second mortgage can start from 9%. These are fixed-rate mortgages. The rate will not fluctuate during the mortgage term. This further illustrates the importance of working with an experienced broker, who knows which lenders to approach for your specific needs.

Caution about "low rates"

A word of caution: don’t get distracted by “low rate” promotions or ads. Private mortgage rates are higher than bank rates due to the increased risk to the lender. If it sounds too good to be true, it probably is. Always consider the overall cost of the mortgage, including fees. A common deceptive practice is to entice you with “low rates”, only to make up for it with much higher fees. A reputable mortgage broker will be transparent upfront about the real cost of your mortgage.

What is the cost to obtain a private mortgage?

As with all bank mortgages, there are similar costs involved in securing the loan. These include, but are not limited to, an appraisal and legal fees. These costs vary widely based on the type of property, location, and complexity of the situation. However, unlike bank mortgages, a private mortgage may also include lender and/or broker fees. These fees are intended to compensate the work involved in originating and underwriting the mortgage. Fees can vary widely from lender to lender, typically starting from 1-2% each per lender and broker. In any case, all fees must be disclosed before you sign a mortgage commitment. If your broker is hesitant to provide this information when due, it might be time to find a new mortgage broker.

Call To get approved today!

Whether you need $25,000 or $2.5 million, get no-nonsense and fair treatment for a private mortgage. Complete this form and let me know how and when is best to reach you, or call me now at (416) 435-8340.

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Get approved today, regardless of income or credit.