Around 40% of people in Canada have a mortgage. People in Ontario can take out mortgages for buying a new home, home renovations, educational expenditures, or other reasons. Whether it’s a mortgage for self-employed in Ontario or others, finding a trustworthy lender is essential. Dig deeper to know about the various mortgage lenders in Ontario, especially the private mortgage lenders.
Types Of Mortgage Lenders In Ontario
You can find the following types of mortgage lenders in Ontario:
- A Lenders: Banks fall under this category, and their lending criteria are extremely strict. Taking out a mortgage from banks will require you to have perfect credit scores. You will also need to have enough household income and a low debt ratio.
- B Lenders: Credit unions and trust companies fall under this category. You will not need high credit scores to get a mortgage from them. But you will have to show proof of your financial income and other financial assets.
- C lenders: A private mortgage lender in Ontario will fall under this category. You will find several experienced private mortgage lenders Ontario. You can get a mortgage from them even if you don’t have a decent credit income or a stable source of income. Sometimes high debt ratios are also overlooked by private mortgage lenders.
What Can You Expect From Private Mortgage Lenders?
If you are looking for short-term mortgages of around one to three years, go to a private mortgage lender in Ontario. You can also negotiate the terms of a private mortgage within one to five days of taking it. Usually, a private mortgage lender will want you to use your house as leverage.
Private mortgages are calculated with the help of your home’s existing equity. It will depend on factors like the location of your home, recent appraisal, and the overall LTV. The condition of your house will also be assessed, such as checking for mold growth, water damage, or other issues.
The minimum amount that private lenders will be looking for in your home equity is $70,000. Private lenders will also prefer an LTV value of a maximum of 75%. It will ensure that 75% of the appraisal amount of your house will be given out as a mortgage.
Final Thoughts
Go to a private mortgage lender who is reputed and trustworthy. Try reading reviews about the private mortgage lender before getting your mortgage.
