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Oakville Private Mortgages
What are private mortgages?When it comes to being approved for a mortgage loan to purchase a house or condominium, many people first turn to various kinds of major banks, but what happens if you are not approved for a mortgage loan? What then? Many banking institutions are regulated by the government because that is where banks turn to for funding, so they can monetarily cover loans. Because major banks deal directly with the government, they have very strict guidelines and rigid criteria that applicants’ must qualify for any type of loan (the larger the loan, the more in-depth the application process). This is where Oakville Private Mortgages can come into effect and provide an alternative funding source for people who wish to purchase a new home.
How do private mortgages work?Private Mortgages lenders are willing to shoulder a bit more risk and have less rigid required criteria because these lenders are NOT regulated by the government and do not get their funding from the government. Private Mortgages lenders obtain funding from numerous sources like private investors, small companies, wealthy individuals or private organizations. These private sources often invest money against real estate because the property & dwelling itself is held as the main collateral or security against a Oakville Private Mortgages loan. Is there a catch to working with Private Mortgages lenders? Yes, in lieu of loaning out money to an individual (who still has to go through the motions of an application process) in a quantity large enough to purchase a home, these lenders will impose higher interest rates then major banks, offer slightly shorter buy out & pay off terms, have certain stipulations in the contract and will require a sizeable down payment (typically 20% of the value of the home).
When is taking out a private mortgage helpful in your financial strategy?For whatever reason people need to turn to Private Mortgages lenders instead of regular major banks, these lenders are there to work closely with borrowers to help them achieve home ownership, which is a huge gainful impact! Upon approval with Oakville Private Mortgages lenders, borrowers are now on track with home ownership and in time, more financial options will open-up. Down the road, home owners have opportunities to approach regular banks (after showing an excellent mortgage payment track record) to see if qualifying for Mortgage Refinancing is a viable option, which would lower the interest rate & monthly payment and revamp the mortgage terms, another big bonus!
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