Many people across Ontario go to their local bank for a mortgage and are refused because they have bad or poor credit. Getting a bad credit rating is easy, miss a few payments on one of your credit cards and you could have a bad credit rating. If you live in Toronto or anywhere across the GTA an alternative to bank financing is to consider private mortgage lenders. Mortgage broker Ronald Alphonso has a large network of lenders that provide mortgages for people with a low credit score. Mr. Alphonso talks to each borrower to determine what type of mortgage is the best solution for the situation. He then talks to various private lenders to get the best terms for each client.
Private lenders usually loan money for residential mortgages. The amount of money that can be loaned is based on each person's situation and the home's equity. Each lender sets its own interest rate and maximum loan to value ratio. Many lenders like to inspect the house and meet the home owner before approving the loan.
For the borrower it is important to get as much information about the lender, and the mortgage terms before they sign. Ask questions, such as what is the interest rate, are there any broker or lender fees, what is the mortgage term and what happens if the mortgage goes into default. Will the lender wait until the borrower makes up the missed payments or will the lender start legal action right away? Asking the right questions helps the client get the best mortgage possible.
The following are examples of how private financing can help.
Susan lives in Orillia but she decided to sell her home and buy another house closer to where she works in Barrie. She bought the house firm with no conditions, thinking she could easily get a mortgage. When the bank turned her down because of her credit score she went on the internet looking for a lender and found the website Mortgagebrokerstore.com. Susan talked to Mr. Ronald Alphonso who informed her that she could get a private mortgage fairly quickly. It was important to get the mortgage right away since Susan could lose a $30,000.00 deposit on the house. Susan said "the private mortgage was faster to arrange than the bank and I did not lose my deposit."
Chris lives in Oshawa and works in Ajax, his girlfriend Gail lives in Whitby. They go out to dinner and take trips on a regular basis, but Chris has a hard time controlling his spending. Chris has missed payments on three different credit cards over the past year. He had a good credit score but now his credit rating is low and his cards are at their maximums. Chris got a second mortgage at an interest rate that was lower than the credit card rate of 29.9 per cent.
Frank is a pensioner renting a small apartment in Mississauga. A relative that owned a condo in Brampton had recently passed away and Frank bought the condo from the estate. When Frank contacted the bank he had dealt with for many years they refused the mortgage because he was living on a fixed income pension and had a low credit score. Frank contacted Mr. Alphonso who arranged a lender in Oakville that provided a mortgage based solely on a low loan to value ratio. This was a great solution since Frank's monthly payments are now lower.
Jenny and Tom have a house in Newmarket with lots of equity but the house needs a new roof and other repairs. They have a low credit score and were also rejected by their bank. Mr. Alphonso arranged a second mortgage with a lender based in Aurora. The interest rate was higher than the bank rate but now the roof and other repairs could be completed.
Bill lives in a detached three bedroom house in the Kitchener area and recently retired from a high-tech company in Cambridge, Ontario. His credit score is fairly low due to a divorce a few years ago. Bill's son was recently accepted to the University of Waterloo and Bill has promised to pay the tuition costs. Bill's poor credit rating meant he would need a private loan. The loan Bill got was for three equal payments to cover all three years of his son's education. This meant Bill only had to pay interest on funds that he had received.
Mr. Alphonso says "private mortgages should only be used when the home owner cannot get a low interest loan from a traditional lender." Mr. Alphonso is presently arranging private mortgages in Pickering, Peterborough, London, Hamilton and Ottawa. He can be reached at 416-499-2122.