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Private Rates 2019

2019 Private 1st & 2nd Mortgage Rates BC

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January 2019 Recently Funded

Second Mortgage Surrey BC

Funds to consolidate debt and complete renovations to client’s surrey condo. This was a previous client with a proven payment track record. Was able to provide financing to 65% of BC Assessment

2nd Mortgage Rate 7.95%

Total Mortgage $55,000

 

Private 2nd Mortgage Langley BC

Both clients had lost their jobs and had new jobs starting the week of funding. Funds were to consolidate debts and bridge themselves until new jobs first cheque. We will be looking to go back to the bank and consolidate the 1st & 2nd once they pass probationary period.

Second Mortgage Rate 10.95%

Total Mortgage $45,000

 

Private 2nd Mortgage Self Employed Langley

Client was looking to put some money into a new business. Clients credit was great but new income will not allow us to qualify under banks income guidelines.

Private Mortgage Rate 8.99%

Total Mortgage $107,000

 

Private 2nd Mortgage Langley

Client was BFS consultant for a several of years. He decided he wanted to go back to be an employee with a significant wage cut for the first year. Property is in ALR and recently subdivided.

Equity Loan Rate 8.60%

Total Mortgage $65,000

 

Private 1st Mortgage Mobile Home

Clients have poor credit due to maximising on too many tradelines, but common-law husbands’ income was strong. Husband was required to sign a guarantor.

Private 1st Mortgage Rate 11.2%

Total Mortgage $100,000

Second Mortgage Richmond BC

Past client with good payment history. Has a very low rate with the bank and still has 3 years left until term is up. Looking to consolidate debt and buy a new car. 2nd mortgage was more cost effective than paying the penalty on the 1st mortgage and raising her 1st mortgage rate by 1% .

2nd Mrt Rate 8.6%

Total Mortgage $105,000

 

Half Interest 1st Mortgage

Client lives in a home and wife lives over seas. Client looking to borrow on his half of the homes equity to start up a new business.

Half interest 1st mortgage rate 10%

Total Mortgage $75,000

 

2nd Mortgage West Kelowna

Past client requiring additional funds on a 2nd mortgage in West Kelowna BC. Funds for business capital

Total 2nd mortgage to 70% LTV $40,000

Rate 12.99

 

1st Private Mortgage Surrey

Client is BFS with low income claimed on taxes. He and a business partner owned the home together, but business partner became ill and wants to settle his estate and be paid out of the property.

Private 1st Mortgage Rate 7.5%

Total Mortgage $340,000

 

2nd Mortgage Victoria BC

Past client with poor credit and a consumer proposal. Funds to payout consumer proposal and fix up coach home for new tenant.

Second Mortgage Rate Victoria BC 11.5%

Total 2nd Mortgage $84,000

 

Second Mortgage Port Moody BC

Funds to payout consumer proposal and education.

Total Mortgage Amount $115,000

Private Mortgage Rate 10%

 

2nd Mortgage Mission BC

Client was at renewal and wished to borrow additional funds to spruce up her home to list it for sale. Past client with an excellent payment history. Able to provide 65% loan to value of BC Assessment no appraisal.

Private mortgage rate 8.99%

Total Mortgage Amount $115,000

Refinance Mortgage Bad Credit BC

Refinance Mortgage with Bad Credit

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Refinance your mortgage with bad credit

Refinancing your mortgage with bad credit can help you consolidate debt and lower your current monthly payments on all debts. As well by consolidating debts this can help you improve your credit score.

When looking to refinance your mortgage with bad credit you have a few options available to you. Weighing out these options can help you best determine your maximum savings on refinancing your mortgage & loans.

Refinancing with your bank

The first stop on your way to refinancing is generally the current bank you are with. This may become difficult depending on what institution you use in Canada. Banks are required to underwrite mortgages on B20 risk guidelines. These guidelines require credit & debt servicing ratios along with a qualifying rate which can disqualify borrowers that may have qualified a year ago.

Refinancing with a B-Mortgage Lender

If you are close to renewal of your 1st mortgage and have bad credit a B-Lender has products enabling home owners to consolidate debts with lower credit scores and income types. Rates are higher than conventional mortgage lenders like banks but where banks fall short B-Lenders fill a gap. Generally, B-Lenders are used for shorter terms like 2 or 3 years.

Refinancing with a Home Equity Lender or Private Lender

Home equity lenders allow home owners with enough home equity to refinance their mortgage with bad credit.  Equity lenders provide 1st, 2nd & 3rd mortgages to home owners in BC regardless of their credit rating.

Home equity loans in some cases can be a cheaper alternative than refinancing your entire mortgage. Home equity lenders offer Second Mortgages, and, in most circumstances, this is a far cheaper alternative than refinancing a bad credit mortgage as a 1st Mortgage.

When holding a 1st mortgage you have qualified for this mortgage at a great rate. In a market where rates are going up it is usually better to hold most of the mortgage at the best rate possible and obtain a 2nd mortgage to consolidate all the bad credit & other debts.

The uses of a blended rate calculator can help you determine savings.

 

Can I get a home equity loan with

12 Can You Get A Home Equity Loan Questions

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British Columbia Can You Get A Home Equity Loan

Can you get a home equity loan with Bad Credit?

Yes, you can get a home equity loan with bad credit. You are not going to get a low rate from a bank, however.

A bad credit home equity loan will however help you improve your credit score by paying down your outstanding debt to zero. It will also significantly improve your cash flow. Credit cards and other loans are usually amortized reflecting in a higher payment. Typically, home equity loan payments are interest only giving you a lower payment and better cash flow.

Can you get a home equity loan with low income or no job?

Yes, you can get a home equity loan even without a job or if your income is to low for bank guidelines.

People often loose or switch employment during the term of a mortgage. This can leave you strapped for cash to make your monthly obligations. Low income can also be a hurdle for banks but not for a home equity lender. If your self employed or have unverifiable income an equity mortgage loan might be the answer.

Can I get a home equity loan if I am self employed?

Yes you can get a home equity loan if your self employed.

This is one of the most popular mortgage products for self employed. Many times the self employed have several right offs that affect what they can show for income.

Can you get a home equity loan without an appraisal?

Yes, you can get a home equity loan without an appraisal.

Usually only if the loan to value if very low. Most home equity loans will require an appraisal, especially if the loan to value is over 50%. Not wanting to pay the price for an appraisal will also limit the amount of home equity lenders that will consider your application.

Can you get a home equity loan without a spouse signing?

You can get a home equity loan without the other person on title. Its called a half interest home equity loan.

Tenants in common allow a home owner to borrow on their half interest of the home. Generally, lenders will go to 50% to 60% of that persons half interest.

Can I get a copy of my Appraisal from a home equity loan?

Yes, you can get a copy of the appraisal from your home equity loan.

This can be provided to you after the financing has been completed and the lender and the use of the report has been transmitted. Appraisers only offer one free transmittal of the use of the appraisal so providing you the appraisal prior to this leaves the report useless without paying additional costs.

Can I get a home equity loan on raw land?  

You can certainly get a home equity loan on raw land. Many considerations would be address like where the property is located and the size of the property. Most lenders will lend to 50% to 60% of the lands value.

Can I get a home equity loan in foreclosure?

Yes, you can get a home equity loan if you’re in foreclosure.

A home equity loan is the only mortgage financing for you if your home is in foreclosure. A equity loan works as either a new 1st mortgage to payout your current mortgage lender or as a 2nd mortgage that will bring your current mortgage up to date and back into good standing.

Can I get a home equity loan in a bankruptcy?

Yes, you can get a home equity loan while in bankruptcy however you are usually required by the bankruptcy trusty to payout the bankruptcy with the funds. This is a great way to put an end period to your bankruptcy and enables you to start fresh re-establishing your credit.

Can I get a home equity loan in a consumer proposal?

Yes, you can get a home equity loan while in a consumer proposal.

In some cases, you can leave the proposal in place other the proposal will be required to be paid out with proceeds of the mortgage.

Can I get a home equity loan with no fees?

To obtain a home equity loan with no fees is not possible. Even if someone arranged the loan without charging you any money (which is unlikely) you would still be hit with legal fees, registration costs and possibly appraisal fees.

Can I get a home equity loan with no credit check?

You could get a home equity loan without a credit check. Although most lenders do require a credit check as part of their standard underwriting process.

Do You Need Good Credit to Get a Home Equity Loan?

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Do You Need Good Credit to Get a Home Equity Loan?

You don’t need good credit to get a home equity loan. However, you will need good credit to get a lower rate home equity loan. The very essence of a home equity loan is home equity.

 

How Much Can I borrow Using A Home Equity Loan?

Borrowers can use up to 75% of their home’s equity through an alternative mortgage lender. If you are looking for a HELOC then the maximums 65%.

 

What are the disadvantages of a HELOC rather than a Home Equity Loan?

HELOC do have some disadvantages like credit and debt servicing ratios. This can significantly reduce the amount of HELOC you qualify for.

 

What are the advantages of a Home Equity Loan over HELOC?

A home equity loan is approved on home equity not your income or credit. This may allow a home owner to qualify up to 75% of your homes value regardless of income or credit.

 

Are there costs savings of a HELOC rather than a Home Equity Loan?

HELOC are the cheapest product allowing home owners to obtain rates as low as Prime + .5%. The legal registration of a HELOC is also less. Usually under a thousand dollars for registering and appraising the property.

Home Equity Loans costs however are much higher. Rates can start as low as Prime + 4.55% and up. Additionally, there are higher legal costs and broker or lender fees associated with the financing.

Your BC Mortgage Broker Has More Information on HELOC’s or a Home Equity Loan. Call today

 

Mortgage Deals November 2018

Private Equity Loans of November 2018

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Alternative and Private Mortgage Deals of the Month November

 

Home in Peachland BC

Funds to payout Private 1st mortgage and consolidate some consumer debt.

70% Loan to Value

1st Mortgage $388,500

Using client’s home equity, we were able to lower clients previous interest rate and obtain them additional money to pay down debts. Clients still have a low credit score but good income. Debt consolidation should assist in improving credit score and will try to obtain conventional mortgage financing in 2019.

 

Mobile Home in Langley BC

Private 1st Mortgage to consolidate a Fairstone Loan and other consumer debts.

17% Loan to Value

1st Mortgage $30,000

Pensioners on fixed income had very high payment unsecured debts that were affecting cash flow. We were able to obtain an amortized home equity mortgage over 20 years that significantly improved clients cash flow as well as put some extra money into their pocket, so they could enjoy retirement.

 

Home Equity Loan 2nd Mortgage small acreage in Duncan BC

50% Loan to Value

2nd Mortgage $80,000

Client took a sabbatical from work for a few years updating his education. Has returned as self employed opening a new practice. Second Mortgage funds were to consolidate debt and inject into business capital.

 

2nd Mortgage Behind a Private 1st Mortgage Chilliwack Hobby Farm

High 1st mortgage payout penalty required creative 2nd mortgage financing

60% Loan to Value

2nd Mortgage $135,000

With credit scores very low and unverifiable self employed income clients required additional funds to consolidate debts and do some business investments.

 

Appraisal Clause

New B-20 Appraisal Clause

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New Appraisal Clause AIC

New Appraisal Clause # 17 & #18 added to appraisals.  Appraisal Institute of Canada (AIC) in January 2018 requires appraisers to add these two clauses to reports or their E & O insurance will not cover them. All B-Lenders & Private Lenders can no longer rely on the report unless B-20 legislation has been applied to lending.

How Does The New AIC Clause Affect Private & B-Lenders

Since B-Lending & Private Lenders do not rely on B-20 legislation they no longer can rely on a transmittal letter from the appraiser. This puts a greater emphasis on the lender to do a through underwriting of the file.

Refinance Mortgage Bad Credit BC

Hard Money Lenders BC

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Hard Money Lenders BC

A hard money lender can mean different things to different people. In BC real estate this refers to individuals or companies like a (MIC. Mortgage Investment Corporations) that lends mortgages outside the banks strict lending guidelines. In the mortgage industry we refer to hard money lenders as private mortgage lenders or home equity lenders.

Where do you find Hard Money Lenders?

There are many places you can find hard money lenders. Primarily you should consult with a Mortgage Broker who would have the proper skills to guide a consumer through the tricky process of mortgage financing. Other places you can find Alternative Mortgage Lender services is through sites in British Columbia like Kijiji and Craigslist. I do not recommend dealing directly with individual money lenders you should use the services of a BC Mortgage Broker.

What Sorts of Loans Do Hard Money Lenders Provide?

Hard money lenders in real estate provide a variety of mortgage financing. Generally these lenders provide 1st Mortgage 2nd Mortgage & 3rd mortgages but can also do draw mortgages for construction and provide commercial mortgage financing as well as stop foreclosure mortgages.

What sort of interest rates do Hard Money Lenders offer?

Interest rates from these types of lenders vary depending on the position 1st 2nd or 3rd of financing and the loan to value as well as the city or towns location. 1st mortgage rates would be your lowest rate then 2nd & 3rd position would be substantially higher rate. For an estimation of private mortgage rates call us and we can give you an estimate right over the phone.

What sorts of Terms Do Hard Money Lenders offer?

These types of mortgage financing come with 1 or 2 year terms. Primarily this type of financing is used to help get home owners out of tough financial situations. A shorter term allows individuals to correct their income or credit situation and improve their financial outlook in hopes to become bankable in as little as 1 year.

Equity Takeout vs Mortgage Refinance

Equity Takeout Vs Mortgage Refinance

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Equity Takeout Vs Mortgage Refinance What you should know.

Contemplating an equity takeout vs mortgage refinance is simple once you gather the correct information.

A HELOC or home equity takeout or 2nd mortgage is usually your cheapest option if you are in a closed mortgage with time left in the term.

What to consider when looking at refinancing your mortgage

A second consideration would be your current rate you are locked into and today’s best rate offered by your bank.

Step 1: determining if your 1st mortgage is a fixed or variable.

Step 2: determining how long is left in the term of your 1st mortgage

Step 3: determining what the penalty is to break your 1st mortgage

The Costs of refinancing your mortgage

Consider using a mortgage penalty calculator to get an idea of what it would cost to break your 1st mortgage. The largest cost is usually associated with a fixed rate mortgage and the payout penalty; interest differential penalty (IRD) or Three-month interest penalty.

Once you have determined the cost of breaking your 1st mortgage you can start to evaluate if there will be savings in a 1st mortgage refinance.

Additional Costs of refinancing your 1st mortgage

The costs of refinancing your home are many. After determining the penalty there are Discharge fees, Legal fees, Appraisal fees and more.

Home Equity Loan or HELOC

A Home equity loan or 2nd mortgage can mean two things. Either a HELOC up to 65% through a bank. (you must income & credit qualify for this style of mortgage) or a straight equity lender which is not focused on your income or credit rather they rely on the equity in your home. These lenders lend up to 75% of your homes value in major centers.

Cost of a Home Equity LOC or HELOC

HELOC or home equity line of credit is an affordable solution but not all banks offer the product. HELOC maximum loan to value is 65%. You must income & credit qualify. Costs for HELOC are generally legal and appraisal costs and if it’s a strata additional documentation will be required.

Cost of a Home Equity Loan or 2nd Mortgage

Costs of a home equity loan or 2nd mortgage are appraisal costs, legal costs both for the borrower & lender as well as broker &/or lender fees on top of a higher interest rate.

mortgage to payout a consumer proposal

Mortgage to Payout a Consumer Proposal BC

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Mortgage to Payout a Consumer Proposal BC

You can use your home equity to get a mortgage to payout a consumer proposal. Usually when people use a consumer proposal it is to assist them with restructuring their debts into a manageable payment. Once they have done this home owners usually see significant cash flow relief, but they still have this monthly bill looming over them and wonder how to payout this consumer proposal.

Benefit of paying out a consumer proposal early

The benefit of paying out a consumer proposal early is it allows your credit to recover instantly. Major banks will want to see a min of 24 months discharged from a consumer proposal. However, B-Lenders do have some products that will allow you to refinance your 1st mortgage to payout a consumer proposal and assume the consumer proposal into the mortgage. This enables you to clear out the consumer proposal fast and start improving your credit years earlier.

Types of Financing & mortgage to pay out a consumer proposal

There are a variety of ways to payout a consumer proposal with financing:

  • Mortgage financing is one way. While the large banks do not get involved with financing out consumer proposals mortgage brokers have access to B-Lender mortgages & Private mortgages that will in some cases consolidate a consumer proposal into a first mortgage. Keep in mind that this requires you to payout your 1st mortgage to consolidate into the mortgage to payout a consumer proposal.
  • Second mortgage financing is another way to use a mortgage to payout a consumer proposal using a home equity loan. With home values going up you can tap into the equity built up in your home to payout a consumer proposal. In some cases, this is a far cheaper way to go. It allows you to keep your 1st mortgage in place at the best rate possible and allows you to payout the consumer proposal instantly. Once your 1st mortgage comes up for maturity you can consolidate the 1st & 2nd mortgage usually back at a major bank usually within 2 years.
  • There are also financing companies that will provide you a loan to payout a consumer proposal. These loans are sometimes at a very high interest rate and a short term. The benefit is you are paid out of the consumer proposal right away. The con is you are stuck with another high rate loan with a large payment which can trigger a payment issue moving forward.
Mortgage Deals November 2018

How To Get A Home Equity Loan Bad Credit

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Canadian Home Equity Loan Bad Credit

Home equity loans can be used for a variety of reasons even bad credit. When you have bad credit a home equity loan can allow you to payout or negotiate your debts which should improve your credit and improve your chances of qualifying back at a bank in as little as 12 months. Second mortgages are mostly used when consolidating your debts into a bad credit mortgage loan.

How to Negotiate debt into a home equity loan.

We can show you how to negotiate debts with an R5 to R9 down and in some cases, paying 50% to 35% on the dollar. We also work with secondary debt management companies that can help assist you. Many times, the home equity loan can pay for itself with the money you save in negotiating these debts.

What is Bad Credit

Credit scores in Canada range from 300 to 900. The higher the credit score the better your chances of getting approved. A bad credit score is 600 or below and if you are in this range your application usually will have to be serviced by a private mortgage lender.

What Causes Bad Credit?

Bad credit can happen from a combination of issues:

Payment History, late payments and missed payments can negatively affect your credit score.

Delinquencies continues late or missed payments

Balance & limit: Keeping balances over 50% of the limit and constantly running up the limit of your credit card can have a negative impact on credit score.

To Many enquirers: Credit seeking has a negative impacted on your credit score. Applying for car loans or multiply credit card application or other applications for credit can impacted your credit.

Account History: Credit is a history of you using credit. If you have very new credit this can be a false credit score. As well if you close old credit cards you are wiping out history that can be vital to showing your history.

 What is a good credit score?

Good Credit scores start at a rating of 650. Depending on your income and debt servicing levels you should be able to obtain many options of financing.

What do the Credit Rating symbols mean?

This information is provided on office of consumer affairs of Canada website

R0: Too new to rate; approved but not used.

R1: Pays (or paid) within 30 days of payment due date or not over one payment past due.

R2: Pays (or paid) in more than 30 days from payment due date, but not more than 60 days, or not more than two payments past due.

R3: Pays (or paid) in more than 60 days from payment due date, but not more than 90 days, or not more than three payments past due.

R4: Pays (or paid) in more than 90 days from payment due date, but not more than 120 days, or four payments past due.

R5: Account is at least 120 days overdue, but is not yet rated “9.”

R6: This rating does not exist.

R7: Making regular payments through a special arrangement to settle your debts.

R8: Repossession (voluntary or involuntary return of merchandise).

R9: Bad debt; placed for collection; moved without giving a new address or bankruptcy.

NOTE : Other rating indicators that might be found on a report are “I” for installment credit or “O” for open credit line.

Source : Equifax Canada