When the bank says no, our private mortgage brokers in Hamilton say yes.
One of the most frustrating challenges a potential home buyer faces is being turned down for a mortgage by the bank. Suddenly their plans of finding a new place to live become uncertain. They grow defeated, wondering whether or not they will ever be able to get into an increasingly competitive real estate market. It is in these cases that our private mortgage brokers in hamilton can really rise to the occasion. Private mortgage brokers at Mission35 have access to a network of financial institutions that extend well beyond the bank.
When you should turn to private mortgage lenders in Hamilton.
Private mortgage lenders in Hamilton are useful in a number of cases:
- You only need the loan for a few years (short-term)
- A poor credit history causes you to be turned down by the traditional channels (major banks)
- Your income can’t be verified
- You’re trying to buy an unconventional property that most banks aren’t prepared to finance
- You don’t have time for a long approval process
What approval criteria do private mortgage lenders use?
Private mortgage lenders will look at the market value as well as the debts on a property when determining whether or not to approve a mortgage application. Unlike the banks, they will not look at your credit rating and will instead use a calculation method called the Loan to Value ratio (LTV) which is existing mortgages divided by the value of the house. If existing mortgages are under 80% of the current value of the house, private mortgage lenders will generally approve a mortgage on the property.
How are private mortgages different from traditional?
Shorter time periods.
A private mortgage can come with a term of 1/2 year to 3 years, where conventional mortgages can last for decades.
Processing fees.
In addition to interest fees, private mortgages come with processing fees.
Higher interest rates.
Noticeably higher than those offered by a traditional mortgage.
Less income verification.
Private mortagages can often be approved with less verification and paperwork.
Open basis mortgage.
Private mortgages can be setup on an open basis and be paid out without penalty.
Talk to private mortgage brokers in Hamilton today.
Have you been turned down by the banks? Are you exploring every option to secure financing for your new home? Book an appointment and speak to a mortgage expert at Mission35 today. We are confident that our private mortgage brokers in Hamilton can pair you with the correct lender and get you one step closer to moving into your new home.
Mortgage Document Explained.
2 pcs of ID – one photo (no health cards) and a secondary of one of the following: birth certificate, major credit card/bank card bearing name and signature, passport, SIN Card.
Name, phone number and address of your lawyer.
For the account where the mortgage is to come out of.
If you are an hourly/salary employee:
- Letter of employment, recently dated and signed by HR/Manager/Supervisor, confirming your: start date, annual income, hourly rate/salary, job title and confirmation of FT or PT status
- Last two recent pay stubs
- Last two years T4s
- Last two years Notice of Assessment (if any taxes are owing, require verification they are paid by way of CRA Statement of Account)
If you are self-employed:
- Last two years T1 General (FULL VERSION – NOT SUMMARY!)
- Last two years Notice of Assessment (if any taxes are owing, require verification they are paid by way of CRA Statement of Account)
- Business License OR Full Articles of Incorporation
- Last 6 months of business banking statements
If you are purchasing with less than 20% down payment:
- Banking statements for the last 90 days for each account holding down payment and closing cost funds, and for the account where the deposit came from.
If you are purchasing with 20% or more down payment
- Banking statements for the last 90 days for each account holding down payment funds, and for the account where the deposit came from.
***Your name and account number must appear on all bank statements****
If you own a property:
- Recent Annual Mortgage Statement
If you own a property:
Recent property tax statement confirming taxes are up to date
If any property you own is a rental:
- Fully signed lease confirming rental amount
- If the lease is now expired, the last three months of bank statements will also be required to confirm ongoing deposit of rental income.
***Your name and account number must appear on all bank statements****
If you are divorced/separated
- Full version of signed separation agreement AND/OR
- Divorce Order
IF refinancing:
- An appraisal is required by the lender, to be paid for by you, direct to the appraiser. Mission35 will order the appraisal on your behalf.
IF purchasing:
- An appraisal may be required by the lender, to be paid for by you, direct to the appraiser. Mission35 will order the appraisal on your behalf and will advise you if one is needed.