Q. I am self employed, and showing little income, will I qualify for a mortgage?
A. While income statement is an important parameter, some alternative lenders will look at other parameters of a deal such as the loan to value (LTV), a credit score or focus solely on the value of your property. You may still qualify for a mortgage spending on other factors.
Q. My credit score is really low; can I still get a mortgage?
A. Sometimes, a low credit score can be explained and carry less weight. If your spouse has a higher score this may support your mortgage application. Some alternative lenders factor in the credit history less than others and look at the whole picture. Therefore, you may still qualify for a mortgage depending on other factors.
Q. My bank says, I have maxed out what I am allowed to borrow, since I own several properties, what can we do to finance another purchase?
A. Depending on the purpose of property purchase the right lender will be matched. Some alternative lenders specialize in investment properties and will
Q. I need a loan for a short period of time, between an early purchase and a later sale, can this be done?
A. There are several lending venues that offer “bridge”. This is a common scenario and depending on amount and time span can be customized and arranged.
Q. What’s the best interest rate I can get on a mortgage?
A. Many factors will determine the interest rate of your mortgage. The general mortgage purpose and your risk tolerance profile are two major aspects taken into consideration when deciding which route to take. This topic be thoroughly covered in your meeting with the mortgage agent.
Q. What is a stress test and does it apply to all mortgages?
A. The Ontario government has decided to take steps to avoid a mortgage crisis and put in place additional checks and balances. The “stress test” simulates a future increase in interest rates on mortgages and measures your ability to maintain paying back your mortgage. In a sense preparing yourself today for a bad scenario tomorrow, only allowing you to borrow today if you will be able to cope with a more difficult loan environment tomorrow.
Q. How quickly can you arrange a mortgage for me?
A. Depending on the complexity of the deal and your responsiveness in supplying documents and information we can turn around a deal in a matter of days.
Q. How do I qualify to become a private lender?
A. With a minimum amount of $25,000 you may qualify to become a private lender. You will need to understand the risks involved in lending and describe the profile of the deals you wish to invest in.