A hard money lender can mean different things to different people. In BC real estate, this refers to individuals or companies (like MIC. Mortgage Investment Corporations) that lend mortgages outside the banks’ strict lending guidelines. For those individuals in Canada that don’t fit a traditional bank’s criteria, a hard money loan may be the best answer.
Where Do You Find Hard Money Lenders In BC?
If you live in BC, there are many places where you can find hard money lenders. Primarily you should consult with a professional mortgage broker that has the proper skills to guide a consumer through the tricky process of mortgage financing.
If you prefer to research yourself, you can find alternative mortgage lenders on sites such as Kijiji or Craigslist. Although finding hard money lenders is not difficult, I do not recommend individual money lenders. Private lending companies are always a safer alternative.
To be absolutely sure of your choice, especially if you are new to the financing world, it is always best to use the services of a mortgage broker.
What Sorts Of Loans Do Hard Money Lenders Provide?
Hard money lenders in BC real estate provide a variety of mortgage financing. Generally, most of these lenders provide 1st mortgage, 2nd mortgage and 3rd mortgages. But, there are also private money lenders that draw mortgages for construction, provide commercial mortgage financing, plus stop foreclosure mortgages.
What Sort Of Interest Rates Do Hard Money Lenders In BC Offer?
Interest rates from hard money lenders vary depending on the position (1st, 2nd, or 3rd of financing), the loan to value, as well as the city or town where the property is located. 1st mortgage rates are always lower, while 2nd or 3rd mortgages would generally have substantially higher rates.
To get a better picture of private mortgage interest rates, just give us a call. We can give you an estimate right over the phone.
What Sorts Of Terms Do Hard Money Lenders Offer?
In BC, mortgage financing from hard money lenders comes with 1 or 2-year terms. Primarily this type of financing is used to help get homeowners out of tough financial situations. A shorter-term would allow you to correct your income or credit situation. Plus, it will improve your financial outlook in the hopes of becoming bankable in as little as 1 year.
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