Short- term, interest-only loans, ranging in length from 1 to 3 years
Getting your mortgage through a financial institution such as a bank can be more expensive and sometimes not even possible. Banks are known for their stringent rules when it comes to lending money to clients. In certain cases or to certain people banks will not agree to lend to.
We are Focused to Improve your Current Situation
By dealing directly with a private mortgage brokerage, like us, you receive flexible and open terms. Unlike at the bank, where your options a more limiting and you will be faced with additional lender fees. At The Lakhani Group, we understand and sympathize with people that are in different circumstances and situations. In addition, we want to help you get the mortgage you deserve. We will focus to improve your current situation and transition you into conventional financing. Contact us to discuss what we can do for you.
Private Lenders in Toronto are Easier to Access than Traditional Banks
Because private mortgage lenders are funded by investors or groups of investors, they are not bound by stringent federal legislation in the same way as regular banks are. When you obtain a private mortgage from a Lakhani Group lender the property that you buy serves as the collateral on the loan.
Meaning that if you default, the property will be sold to recover the loan. This is why private mortgage funders are more interested in the property than in your financial position. Private mortgages are not insured, and so the property is the lender’s only recourse should you default on your payments.
If you have failed to make the stringent application process on a regular mortgage, you could finance your property through a private mortgage. This sector is free of the rigid criteria that are in place at regulated financial institutions.
What is a Private Mortgage?
In calculating the interest rate that you will pay, the private lender will look at the risk factors. These include:
- The Loan to Value – the lower the percentage, the lower the risk
- Your income
- Your credit scores
Private lenders are, of course, interested in your ability to repay the loan. They are less interested than the banks are, in your slightly tarnished credit record. You can get mortgages in the Toronto area for up to 95% of the equity in your home.