VANCOUVER, British Columbia, August 18, 2021 / CNW Telbec / – Based on the latest stress test update on June 21, 2021 It has become even more difficult for Canadians to own their dream home as it has reduced their ability to borrow in a variety of situations. Since many Canadians are unable to obtain financing from banks to build their desired homes, the demand for alternative homes has increased. mortgage…
In addition, with historically low mortgage rates, private mortgage brokers offering low rate private mortgages that can help ineligible Canadians with their loan needs.
Why is it time to buy now?
With such a low interest rate, now is the time to buy before they start to rise again. On the Jul 14, 2021in its article titled “Pandemic Mortgage Sprint,” TD bank said: “Homeowners with mortgages due in 2023 are likely to face a much less favorable interest rate environment with benchmark government bond yields close to more“ normal “Levels”. With this in mind, some people may not be eligible for a bank mortgage, but there are other solutions as well. One of the best solutions is to speak with a private lender to find out what options are available.
What are the rates of a private lender?
Rates always change with the market and it is important to keep up to date in order to get the best deal. For example, in the last couple of months, rates at Seven Lending (a British Columbia-based mortgage brokerage company that specializes in lending to individuals) have started from 4.39% for the first mortgage to 50% of the value of the home and around 5.99-6. 50% higher. up to 75% of the property value.
According to Raghav Manchanda with whom is the mortgage broker Seven loans which specializes in lending to individuals:
“These are the lowest rates I’ve personally seen in the private lending industry. Until a few years ago, we saw large financial institutions charging clients 3-5% and private lenders approaching them, giving our consumers so much choice and flexibility. ”
These loans usually do not require proof of income. However, since they are privately owned, they require additional costs. Usually the lender and broker will charge a commission, which is approximately 1-2% of the loan amount. In addition, there are legal fees, appraisal costs, etc.
Who is using a private mortgage in 2021?
According to Asim Ali, which is one of the leading mortgage brokers in the country, has witnessed an increase in private mortgage loans and clients looking for them. He told us in an interview:
“We see that more and more customers are asking for Private mortgage… Fast turnaround times, low paperwork requirements and increased creditworthiness appear to be some of the main reasons. In addition, clients who are self-employed, want to build, or have found themselves in financial and life situations where the bank would refuse them regardless of their income, use private mortgage… We’ve had situations where the client’s bank was pulling out of the deal at the last minute and we needed to get a good private solution in the short term. ”
Private mortgages are becoming a great second option for banks for the vast majority of people looking to buy their home.
Why use a private mortgage?
This is an upcoming option that will accommodate and help people who are frowned upon by banks and more traditional channels. With less documentation, a faster process, and much more flexible guidelines, these companies are able to offer clients good temporary solutions.
SOURCE Seven Lending