I get many a call lately from people who were turned down by their bank. The call goes something like this. What kind of interest rate can I get for a private loan in Barrie? This is a great question however it is not easily answered without a number of other questions being answered first.
What Affects My Mortgage Interest Rate?
We all are drawn to the new rate websites that are available online to take in what the lowest number of the day is. As moths to the flame – what is not being told there could burn you. Marketing is a powerful tool and in order to get you clicking – some mortgage providers will ride the fine line of honest disclosure. So what does in fact cause you to get an approval for a mortgage at 4.99% versus 2.99%.
The basic pillars of your mortgage qualification are going to be your credit worthiness, how you are employed, and your ability to service your debts with the amount of income you derive. Let’s look closer at each:
1) Credit Worthiness – We have all done at least the basic homework of understanding your credit score. What is less evident is how each individual lender interprets your information. The mortgage lenders who provide the best loans generally have a higher criteria, translated a higher score, in order to qualify for their best mortgage products. Generally speaking – most banks and other national institutional lenders are looking for a 680 score or higher to consider you.
2) How You Are Employed – Another key area of getting a great mortgage interest rate is how you earn your income. If you are a salaried employee with a six figure income you will be better off than the same income in a commission sales position. Anyone who works part time, on contract, earns cash, or runs their own business will also have a harder time qualifying for those coveted interest rates.
3) Ability To Service Debt – The final key area to understand is how much of your income as a percentage goes to service your debts. There are two separate calculations – one covers how much of your income it takes to pay for your mortgage and related expenses – the other your total debts inclusive of the mortgage. If you for any reason are in a position where you have a high amount of consumer debt – you could be jeopardizing your chances of getting the best mortgage for you.
Private Loans In Barrie For Those Who Don’t Qualify
There is hope for those who haven’t fit the square peg the banks try to make us fit in. I work with many private lender institutions as well as citizens like you and me who are looking to earn a better return than their GIC can provide. Go here to find out how you could get a private loan in Barrie. The loans are more easy to qualify for and they won’t have you waiting three weeks before they turn you down. The pricing varies widely based on the individual factors of your situation and the risk perceived by the lender.
Can you start to see some hope here? There are options for you when you aren’t feeling the love from your bank. As part of a great Barrie Mortgage Brokerage it is my pleasure to assist you in finding the loan that fits you like a glove. Reach out to me below for a no obligation quote on your best mortgage today.