Private mortgage in Vancouver
April 9, 2019 | Posted by: Alex Vinarski
When looking for private mortgage clients should not only look at the rate and the fee for the mortgage.
Very important also renewal fee. Some lenders charge $200-$300 renewal fee, and some up to 1.5% of the mortgage amount, also some lenders will increase rate after 1st year. Another point to look at if mortgage open or closed. Many lenders charge 3 month interest for early pay out, and some have open mortgage, so no penalty to pay it off early. There also legal fees for lender's lawyers. Most of the lender's use only 1 or 2 lawyers to represent lender, and fee could be from $950 to $3500.
I can arrange up to $1,000,000 Home Equity Line of Credit (HELOC) up to 75% of the property value without any income verification. HELOC can be as first or second mortgage, and based purely on the equity in your home. Rates from 7.95% in first position, and from 9.9% in second. No pay stub, or tax return required, no upfront fee. Only need mortgage application, and appraisal ordered by the lender. Appraisal paid by the borrower, upon receiving mortgage commitment.
Another good product is Home Equity Visa. It's registered as a 1st or 2nd mortgage, and can be up to $250,000. Rate from 5.99%, and clients get 1% cash back on purchases. For this product lender wants to see business registration, and confirmation that business actually makes money (business bank statements showing deposits, paid invoices etc). Don't need to show tax return.
When you are not qualify with the bank because of the credit or income, you can get mortgage with B lenders. B lenders are also banks, with special programs for clients who have credit problems or income verification problems.
Rates will be around 4.5%-5% for 1st mortgage.