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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

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.

 

home equity loan no income bc

Can I get a Home Equity Loans with No Income

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Can I get a Home Equity Loan with No Income?

If you own a home and have home equity you can get a home equity loan even without a job. Home equity lenders primary focus is your homes equity. Many times, people starting a new business, new Canadians or temporary job loss can leave home owners without conventional income to qualify under. With home equity lenders this doesn’t matter as much. We can explore a few options that assist no income home equity loan approvals.

Types of No Income Home Equity Loanscan i get a home equity loan with no income

Home Equity Loan No incomeStated Income Home Equity Loans

The most common home equity loan is one where a home owner is self employed but claims very little income. We have many options both at a bank & through our private mortgage lenders.

Home Equity Loan No incomePre-Paid Home Equity Loan

If you are out of work or started a job with limited income and require funds to bridge yourself until income starts flowing in, we can provide pre-paid mortgage options. This is usually using a 2nd mortgage. If you currently have a 1st mortgage at a great interest rate, we can offer a second mortgage where you obtain the money you require plus an additional lump sum to pre-pay your mortgage, so you can work on the things that are important to making you successful.

Home Equity Loan No incomeHome Equity Loan with Guarantor

This option may work both at a conventional (bank) lending & home equity lending. For this purpose, I will speak only to the home equity loan aspect.  

Many times, I have applications where a home owner have a home but very little to no income. This can be due to employment, marital reasons or any other reason. These home owners sometimes have a spouse or common-law spouse or any other variation of relationship. In this situation you can have the home owner that makes very little but the “partner” makes very good income. They may want to be associated at this time with the title of the home or may not want to be associated with the title of the home. The consigner may have good credit or bad credit it doesn’t really matter the primary focus is showing lenders that there is a good likelihood that this guarantor will assist with the payments.

Home Equity Loan No incomeReverse Mortgage

A reverse mortgage is a type of mortgage offered by Home Equity Bank and Equitable Bank. It essentially allows home owners 55 years or older to borrow money using their home equity without having to make a payment. Your age income & credit is not an issue.

Home Equity Loan No incomeBalloon Mortgage

Balloon mortgages can work in a variate of ways. It allows a home owner to make a small monthly payment but, in some cases, no monthly payment of interest or principle for a fixed term. This term is usually one to two years. At the end of the term you would have to pay the balloon interest owed or refinance again to include the balloon interest owed. This is primarily offered only if you have substantial home equity. The cons are obvious if your employment situation does not improve in a short period of time you will erode the equity saved up in your home and incur a higher cost of borrowing for this type of product.

Information on How To Stop Foreclosure BC

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Help To Stop Foreclosure BC

If you are a home owner in British Columbia and you have fallen behind on payments or your bank will not renew due to previous payment history here is some options you can consider.

Mortgage Lenders That Assist with Foreclosures

Your BC Mortgage Broker has options through alternative mortgage lenders that can assist with reinstating your mortgage & if require refinancing your entire mortgage.

Lawyers to Consult

Dial A Law library “is prepared by lawyers and gives practical information on many areas of la in British Columbia.

 

What is a Foreclosure?

A Foreclosure is a action from a money lender when the borrower has stopped paying back the mortgage.

What is a Mortgage?

Mortgages are contracts between lenders and borrowers to pay back a loan or mortgage.

What are missed or late mortgage payments?

Lenders do not want to foreclose on properties so missing or being late on a few payments doesn’t necessarily mean you will loose your home. Lenders usually start the process of foreclosure after the 2nd or 3rd month after of non payment.

What The Process if Lenders Start Foreclosure?

Petition: Lawyers file a petition to court and you will be served with a copy. It is sent to all interested parties. You can file a response to the petition.

First Hearing: At the hearing the lender will be looking for the judge to give them an “order nisi”. Most cases the borrower will be granted a “redemption period” usually 6 month redemption period.

What Happens at the End of Redemption Period: Typically at the end of a redemption period the lender can choose to have he property listed for sale by the court. The other options for the lender is to request “absolute order for sale”.

Court ordered Sale: Court ordered sale is when the courts list the property for sale and approves the sale of the property. If there is a short fall to pay the petitioner in full the petitioner can seek a deficiency judgment form the court against the borrower.

Order Absolute: Absolute order of Foreclosure is granted to the petitioner and they become the new resisted owner of the property. This happens when when the property value equals or exceeds the debt. No other action an be taken against the borrower.

To review your situation please feel free to contact us or apply online and we will be happy to discuss options.

 

 

 

 

mortgage to payout a consumer proposal

What to Consider when Looking at a 2nd Mortgage BC

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Second Mortgage in BC What To Consider

Second Mortgages are a fast and easy way to obtain money using a home equity loan to do things like: debt consolidation, home renovations, create fast business capital if your self employed, pay outstanding bills like taxes or liens. These are great for reducing payments, paying out debts or increasing cash flow but what else should you consider?

Rates on Private 2nd Mortgages

Consumers are fixated on rates, this shouldn’t be a surprise but as a mortgage professional we can or should be able to see a larger picture.

Take for instance a blended rate. What is a blended rate you might ask? By looking at your 1st mortgage balance and rate and considering a smaller second mortgage usually at a much higher rate you can compare your blended rate. Here is a link to a blended rate calculator.

Example of How a Blended Rate Works

Look at it this way, your 1st mortgage is larger (lets use $350,000 as an example at a rate of 3.25%) and you are looking for a 2nd mortgage which is usually smaller (lets use $50,000 as an example at a rate of 10%) your Blended rate between the two loans are 4.09%. So why are you focused just on the 2nd mortgage rate at 10%? It’s a smaller amount of money.

Costs in Breaking a 1st Mortgage (IRD)

Now consider what is the penalty of breaking your 1st mortgage? Most Fixed mortgage terms have an interest differential penalty (IRD). This penalty can be many thousands of dollars depending where you are in the term and the interest rates offered by your bank.

Costs associated with a 2nd Mortgage

Now 2nd mortgages do have a higher rate of interest depending on the loan to value. As well there are legal costs such as title insurance, Insurance Binders plus strata Form B’s if you are in a strata or bare land strata. Onto of this Mortgage Brokers do not get paid by the lender so the borrower does have to pay a fee associated with 2nd mortgages financing. In a lot of cases these costs of doing a 2nd mortgage are a cheaper option than breaking the term on your 1st mortgage.

What a mortgage expert should be doing when looking at your application:

  • Review the length of term left in your 1st mortgage to determine if its in your benefit to refinance now or obtain a 2nd
  • Review your credit to see how long you will require funds if you have poor credit.
  • Consider what lender would work best. (some lenders work with clients longer who have a history of late or missed payments while others have little patience for this type of borrower) Of course costs and rates will be higher for lenders that offer a more patient approach but the over all savings of a lender not renewing is usually far greater.

For a review of your situation feel free to call us.

Better Home Equity Loan

B Lender Mortgage Rates BC Canada

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Mortgage Rates vary from B lender to B lender

B Lender Mortgage Rates BC for a 1 year fixed rates can start as low as major banks 5 year fixed rate. Keep in mind B Lenders do charge a lender fee plus you are responsible for all legal & appraisal costs. There may be additional costs so call for a complete review of your situation.

Why Use B Lender Mortgages 

B Lender Mortgage RatesB Lender mortgages are you next best option if your bank has turned you down due to lower than average credit score or income issues.

What do B Lenders Mortgages do?

B Lender Mortgages are ideal for:

  • Self employed B Lenders mortgages have higher debt servicing ratios than banks
  • New Immigrants to Canada who do not have established credit history yet
  • High home equity but income does not support TDS & GDS ratios for the big banks
  • Lower than average credit scores.
  • Previous bankruptcy 1 day discharged
  • Payout consumer proposals, income tax arrears, property taxes

Best B Lender

“Who is the best B Lender” being a question we get all the time. The answer is not as simple as rate. Each lender has slight differences and choosing is best lender & terms should be left up to your mortgage broker.

B Lender Mortgage RatesWho are B Lenders?

Some of the major B Lenders in BC are:

  • Home Trust
  • MCap
  • Optimum
  • Peoples Trust
  • Xceed Mortgage Corp
  • Equitable Bank
  • Bridgewater Bank

As well as alt products through some smaller credit unions & trust companies

Rates vary from B lender to B lender

B Lender 1 year fixed rates can start as low as major banks 5 year fixed rate. Keep in mind B Lenders do charge a lender fee plus you are responsible for all legal & appraisal costs.

Best B Lender

Who is the best B Lender being a question we get all the time. The answer is not as simple as rate. Each lender has slight differences and choosing is best lender & terms should be left up to your mortgage broker.

B Lender Mortgage RatesWhat cities do B Lender Mortgages go to In BC?

B Lender Mortgages lend typically in major centers in BC.

  • Metro Vancouver
  • Major Cities in the Okanagan
  • Major Cities on Vancouver Island

B Lender turned you down. What Now?

If you do not qualify under a B Lender mortgage your next choice is a Private Mortgage lender. Now if you were looking to refinance your current mortgage and you are not at the end of your term a second mortgage may be a more cost-effective options.

This articular is for information purposes and details in this articular can become outdated with mortgage rule changes. Call us for the latest information.  

Mortgage Lenders

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Insiders Info On Private Mortgage Lenders. CALL US!

Private mortgage lenders fill the gap when banks and home owners needs do not match. In life there are ups and downs but for bank profits they only want to look at the ups. This is where private mortgage lenders come into play. They will consider financing solely based on your homes equity not income or credit.

How Do I Negotiate The Best Private Mortgage Lenders Rate?

Negotiating the best rate from a private mortgage lender is harder than it looks. This is manly due to the different between rate & cost of arranging the mortgage financing. There are some very good private mortgage lenders out there that have straight forward mortgage documents and very competitive rates. There are also lenders that provide lower than average rates in hopes that less sophisticated borrowers look only at the rate and payment structure of the financing and not the cost to arrange the financing.

How Do I Know If I Am Getting A Good Private Mortgage Loan?

A good private mortgage loan is part rate, part cost & part terms. To fully understand the benefits of private mortgages is determining your use. You must be realistic about your situation, are you in a position that will be fixed in one years time or is this something that may take a few years? In most cases an outside expert like a mortgage broker is your best advocate to determine if you are being realistic about your situation and your time frame.

Who To Call To Obtain A Quote From A Private Mortgage Lender?

A Mortgage Broker who is not associated with the lender is a good start. Not all mortgage brokers have a ton of experience in Private Mortgage Lending due to this type of lending makes up about 5% of the mortgage application. I am a very experienced Mortgage Broker with many of different private mortgage lenders that I frequently work with. I am able to quickly attain which lender has the best product and/or what lender may be sitting on a lot of money. When private mortgage lenders are flush with available funds they are usually willing to provide more options or lower costs to get their money out working for them. There are many lenders out their that are more familiar to the public due to the amount of advertising they offer but in most cases they are not a great fit in terms of product.

Jeff DiLorenzo The Mortgage Group Canada Inc

Call for no obligation over the phone estimation 1-877-744-3436

Home Equity Loan Rate Shopper DIY Mortgage Specialist

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DIY Mortgage Rate Shoper

Mortgage Rate Shopper or Work with a Mortgage Professional?

Mortgage BrokerRate Shopper “What is the lowest home equity loan rate you have” is a question I get every day. As rate shopper looking for a BC Home Equity Loans (this does not apply to Home Equity LOC’s to 65% LTV at a bank or financial institution) you are dealing with a product that means for  one reason or another you do not qualify under conventional mortgage criteria. Although rate should play a part in every transaction your Mortgage Brokers knowledge in lenders & negotiating terms and conditions is going to be the major factor in determining costs associated with arranging the financing now and possible costs in the future.

mortgage broker BCLet’s look at a few scenarios, why you do not qualify for conventional financing and why you should use a mortgage expert rather than becoming a rate shopper and get a better understanding of your needs and the difference between Home Equity Loan rates & lenders:

  • Self-Employed Rate ShopperYou are self employed and do not want to claim all your income due to the cost savings in taxes. This is true in some cases but if you are stuck with a very low max mortgage (lets say $150,000) and you have to top this up with a larger home equity loan (lets say $150,000) at a higher rate of interest this might be a good time to start paying the government and stop paying the high rate home equity loan. An experienced mortgage professional can help you run the numbers and make an informed decision. A direct lender may not work with you to better your current situation because they do not provide conventional financing options to their clients. It is not about rate it’s about dealing with a true professional mortgage broker independent from the lenders that can show you the cost associated with the mortgage rather than being just a rate shopper.
  • BC Debt Consolidation Equity LoansYou have bad credit and you are looking to borrow money to payoff debts. That is great!! But do you know some of the pitfalls or techniques to do it correctly? Credit can recover quickly if you do it right, for example sometimes it is best to pay off and entire card and other times it is good to just pay the balance down under 50% of the limit. Paying off cards or other loans and closing accounts can have devastating impact on your credit. Trade lines tell a story about your payment history over time, like it or not. But bad credit is sometimes a moment in time and not a reflection on you over a long period of time. Deleting that history can have a larger impact than the missed payments. For many DIY client rate shopping for home equity loan does not take into account the costs they incurred when not taking a look at the whole picture.
  • How Much is Too muchHow much is too much to borrow? Great you were approved for $100,000 2nd mortgage to pay off credit card debts pay your property taxes and do some home renovations. Will you be able to refinance your 1st mortgage to include this $100,000 in the future? Credit and debt servicing ratios (TDS & GDS Ratio) play a massive roll in your future financing options. Borrowing too much now can affect your future refinance, but equity lenders only look at equity to qualify your approval. There is more to consider and a mortgage professional can provide options for you to consider.
  • Interest Rate Lender FeeIs the interest rate you have affected by a lender fee? Lender fees may affect your financing at the end of the term. Many lenders use a lender fee as well as a broker fee when providing an offer sheet. While the practice is not bad in all cases, in some it can be a surprise if that lender fee was to offset your rate to appear lower. For example a $100,000 home equity loan at 6% with a $2,000 lender fee is 2 % higher than a rate without a lender fee. At the end of the term what if the lender wants to yield 8% on the loan again? That means a lender fee of 2% is required to renew that mortgage. A $2,000 cost to the borrower at renewal can be a shock and may not be manageable leaving you to refinance your mortgage again to pay for those costs. In those cases focusing on rate doesn’t prepare you for the true cost of borrowing money.
  • Equity Loan Bad CreditYou have bad credit and you always have had bad credit, that’s just the way you are. Ya there are people like this and there are bad credit mortgage lenders that are better to use for late payers than others lenders. The management of a home equity loan is un-measurable costs and many private lenders that offer great home equity loan rates do not want to see late payment, held payments or any other sort of management of the mortgage. These lenders may not a renewal at the end of the term to people with payment issues. So understanding a client’s history by a complete review of their credit history and setting the client up with a lender at a rate they are comfortable managing payment delinquencies at can be a significant cost saving to you the borrower. You might think “why pay for a higher rate if I don’t have to for a home equity loan”. Well being matched with the right lender at the right interest rate can be far less expensive than the cost of refinancing your mortgage every year if the lender does not want to deal with payment issues. Be honest with yourself if you lose track of payment dates constantly you need someone that understands you, and there is a cost associated with that.

Don’t try to be a DIY Mortgage Professional When dealing with Home Equity Loans. Leave it to independent mortgage experts!

Home Equity Mortgage Specialist BC

DIY Mortgage Rate Shoper

Non Resident Equity Mortgage BC Real Estate Investors

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Equity Mortgages BC & Foreign Investors from China Greece & Russia

The foreign real estate investing is not a new concept in the Canadian real estate market. For many years now China has been one of the leaders in the Vancouver Real Estate market but there are two emerging competitors due to the financial uncertainty in Russia & Greece. Article MortgageBrokerNews.ca

Mortgage BrokerWith the banks stricter mortgage rules where will this leave foreign &/or non resident real estate investors if they can’t provide adequate assets or down payment to satisfy banking guidelines?

Non Resident Equity Mortgage Solutions

mortgage broker BCSome Banks require 35% and in some cases 50% as a down payment under their policies. Non Resident can get approved by using a Non Resident Equity Mortgage solutions:

  • B-Lenders can be an option; they can allow greater loan to value ratios. In most cases up to 75% LTV. Rates are slightly higher than bank rates and usually these types of mortgages come with a 1% to 2% fee associated with the setup.
  • Home Equity Mortgage Lenders lend base most of their lending criteria on equity. In most cases proof of income & credit is not an issue and generally lend up to 75% LTV. These mortgages come with higher costs and rate but can close in most cases faster than banks & b-lender.
  • 2nd Mortgage Options would be another option. Firstly we would obtain a conventional lender (bank, trust company or credit union) to take on the 1st mortgage to the maximum the client would qualify. We then match the foreign real estate investor with a 2nd mortgage generally up to 75% LTV for the balance. Broker & Lender fees may apply in addition to higher rates due to the priority of the mortgage. There are 2nd mortgage programs able to lend up to 85% LTV but the costs associated with these types of loans are Very costly.

For a no obligation review of your mortgage needs feel free to give me a call to discuss equity mortgage options that might be right for you.

The Mortgage Group

EQUITY LOANS VERNON BC