I specialize in private and alternative mortgages. I do private mortgages in Vancouver and all over BC, and I am also a private mortgage lender.
Most common use of private mortgages: debt consolidation, investment in business development, renovation, purchase of property, foreclosure prevention, kids education. Mortgage can be in 1 st, 2 nd, or 3 rd position. There are a few different products with private lenders, and I can help to choose right mortgage for you.
Private lenders lend based on the equity in the property, not client’s income or credit. Usually to get private mortgage all we need is application, credit bureau, and appraisal. Rates start at 4.9% for first mortgage, and at 5.99% for second mortgage. The higher the risk, the higher the rate.
With private mortgage, clients should not only look at the rate and the fee for the mortgage.
Very important is also renewal fee. Some lenders charge a $200 renewal fee, and some up to 1.5% of the mortgage amount. Some lenders also will increase rate by 2%-4% after 1st year, but most of the lenders keep the same rate.
HOME EQUITY LINE OF CREDIT (HELOC).
HELOC can be register as a first or second mortgage and based purely on the equity in your home. This is very similar to bank Line of Credit, and a very convenient product for clients who need money in and out all the time.
No income verification required. No pay stub, or tax return, no upfront fee. Only need mortgage application, and appraisal ordered by the lender.
HOME EQUITY VISA is another good product. It's registered as a 1st or 2nd mortgage and can be up to $250,000. Rate from 5.99% and clients get 1% cashback on purchases. For this product, the 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.
B LENDERS. Stated income for self employed.
When you are not qualified with the bank because of the credit or income issue, you can get a mortgage with B lenders. Rate 2.89%, plus 1% fee. Minimum down payment 20%. Clients would need to provide Business registration and account statements showing deposits from the business. No tax return required. Under this program lenders also can use tips, commission and even cash income. For fully stated income ( no income documents at all), rates will be slightly higher, and minimum down payment 35%.
I have access to few lenders who provide Reverse mortgages and can get the best rate and the lowest set up fee in Canada.
Reverse mortgages are for borrowers who are 55 years old or older.
No income verification required. Loan amount based only on age of the borrowers and property value. Can be used for equity take out or purchase. Don’t need to pay monthly payments, but there is an option of paying interest only payments with up to 10% of the loan amount annually.
Mortgages in small towns in BC.
I have done private mortgages in many small towns all over BC: Prince George, Quesnel, Ucluelet, Prince Rupert, Campbell River, Salmon Arm, 100 Mile House, Merritt, Kamloops, Vernon, Courtenay, and some others.