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These days, a lot of Canadians are ineligible for traditional financing even if they have sufficient equity in their homes and have a sound financial status. Thankfully, North East mortgage loans are available for all borrowers even those who have bad credit. The following are some of the benefits of private mortgages:
Easier Qualification
Private lenders assess the risks of borrowers holistically aiming to match each of them with a suitable mortgage. They do not concentrate on narrow credit standards; instead, they think about proper value as the primary factor when approving a mortgage application. Also, private lenders consider the income and assets of a borrower as well as their ability to handle a mortgage.
Fast Financing
Private lenders minimise the red tape and facilitate a streamlined approval process. This is meant to simplify and speed up mortgage financing by eliminating a lot of the obstacles and pitfalls. They request only important information that can help them make an informed lending decision. In turn, this can allow for faster financing.
Flexible Solutions
As private lenders are afforded relative regulatory freedoms, they can provide more flexible financing solutions tailored to every customer’s unique requirement. They can offer a range of interest rates and can finance a range of properties including those still under construction. Moreover, private lenders incentivise their borrowers with competitive terms as they try to capture market share from major financial institutions. They target the following types of borrowers:
- Those with bad credit. Borrowers who do not have enough credit to qualify for a traditional mortgage are the main candidates for private mortgages. Taking out a private mortgage and paying it out dues on time can help a borrower with bad credit improve their credit status.
- Self-employer borrowers. Self-employed borrowers with unverifiable, non-traditional income can also benefit from private mortgages. Although such borrowers may have a good credit standing they usually do not have the income verification forms and documentation that traditional lenders require.
- Bridge borrowers. Borrowers who are looking for a short-term loan to meet obligations for cash flow as soon as possible can take out a private loan. They include home buyers who are looking to buy a new property and close on a deal quickly. A private loan is often ideal for house flippers or real estate investors who require funds as quickly as possible to close a bid.
- Untraditional buyers. These borrowers are those who want to finance unique properties, buy a property under construction, have unique requirements that banks and credit unions do not want to finance, as well as those who require short-term loans.
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