When Should You Get a Private Mortgage?
Just as there are times when we need to stop letting a negative relationship control your actions; there are times to use a private mortgage to get control back of your finances.
Best Reasons To Consider A Private Mortgage
There are a surprising amount of reasons why a private mortgage is a good option. Here are some of the most important:
Bank won’t lend
You already have borrowed 80% of your property’s value through your bank and need additional funds for debt consolidation, home renovations, or paying off personal loans etc.
The banks in Ontario won’t let you borrow any more. They don’t have the ability nor the empathy to listen to your story or help you at this time.
Now is the time to use your utmost efforts towards getting the money you need through a private lender.
Time
You need the funds quickly and don’t have the time to go through the bank’s long and required qualification and approval processes.
Sometimes the cost of not getting something done far outweighs the cost of even an expensive solution.
Hanging around in ‘bank purgatory’ while weeks go by and then eventually getting a NO to your loan request? Ain’t nobody got time for that!
A quick example: You are behind on your 1st mortgage and while trying to get the bank to refinance your mortgage you begin to see a domino effect of other debts snowballing into missed payments. The costs and damage to your credit score are not only high, they are also adding up and far reaching.
The interest rate you will pay on that future loan is now going to be way higher because you didn’t nip this situation in the bud at the start with a private mortgage loan.
Amount of paperwork
You are self employed and don’t want to provide all the burdensome disclosure and high amount of paperwork that the bank requires in order to get your loan approved.
To illustrate this frustrating process…
Have you ever dated someone who had a different set of rules when it came to engagement or intimacy? You thought you said the right things and made the right moves so that you were on the same page and then you had the audacity to go in for the kiss and WHAMO! You are back to the dugout.
Well this is what it is like to get a loan from the bank when you are self employed.
A private mortgage is like a friend who understands you first with the possibility of much more as the relationship progresses. And this can happen quite quickly.
The process of getting your information to the lender is based on common sense and is usually quite simple.
Bad Credit
Your credit rating is bruised and you know that you won’t qualify for a bank loan. Using a private mortgage lender will get the loan approved although it may cost more in the short term.
Private mortgages are a secret weapon to improve your credit that the banks don’t want you to know about.
The bank would love nothing more than for you to stay living hand to mouth while you make your minimum payments and your credit rating continues to dive and they heap up the interest monthly. To think anything else is delusional.
However if you were to deal with your debts by consolidating them with a private mortgage, then the accounts that are destroying your credit are paid to zero and with time and improved habits your credit will be singing once more. Then you can refinance everything back to the bank at best interest rates, beating them at their game.
Find out more about all of the things you need to know about your Private Mortgage Made Easy
Income
You earn your income in an unconventional manner that is harder to prove and causes you to get a NO when you apply for a traditional mortgage loan.
Sometimes this will be your income situation for the foreseeable future and so a private mortgage may be your only option. Those who make sufficient cash or have other assets can still qualify and get the mortgage approved.
On the other hand, there are a surprising amount of people who just are not reporting their income in a way that assists in getting their mortgage approved.
For these folks, a private mortgage is a good immediate to short term solution while they are working with their accountant and their Mortgage Broker to improve how to report future income and qualify for a better mortgage down the road.
So When is the Best Time?
So when is it truly the best time to get a private mortgage? Well as I have demonstrated, there are many good reasons.
It’s hard to break that negative relationship with your bank however it is necessary in order to improve your financial health.
The only question that remains is do you want to get the funds you need directly and promptly so that your closest relationships will thank you? The answer is yes so let’s get you back in control of your finances today! Contact me below
