There are options out there for homeowners needing help but cannot qualify for bank mortgage. Various B lenders and private sources are available. Many of these lenders are open for business and have flexible mortgage terms. They are ready, willing to engage and help with most home equity loan requests. They are easy to deal with and very receptive to connect and build a relationship with the client. These lenders use a make sense approach with each mortgage request. They are equity lenders for the most part - so they allocate more value and merit in your available home equity, unlike the banks. They place far more of their mortgage approval decision on your available equity. Income and perhaps credit will factor in on a far smaller scale, but they are necessary components to help with the lenders mortgage approval.

Here are some of the benefits in considering alternative mortgage financing, such as home equity loans funded by private mortgage firms and investors.


Easy to Qualify – So easy.  In most cases, your available property equity will dictate the terms of the loan.  If you have equity, the private lender can help. The basic requirements are a completed application form, appraisal report of the property, title inspection, credit bureau review and a comfort level with the borrower’s ability to repay.  
Flexibility – The private lender will review the application personally and can tailor the loan to the specifications for the borrower or their situation. The lender will work with the borrower to try and best satisfy the loan request.
They lend on all property types regardless of location. – They will lend on houses, condos, farms, raw land, commercial properties, recreational properties, leasehold properties, remiated marijuana grow-operations, bridge loans… just about anything.
They finance those with credit and income issues – bad credit or no credit, little to no income, a mortgage loan solution is still an option. 
They finance all loan request types; construction loans, partial interest ownership, education /medical expenses, debt consolidation, renovations, anything important to you.
Quick Fundings – They have the ability to fund loans in a short period of time without hesitation.  They can adjust the timeline to processing the mortgage loan request and ultimately getting funds.  They have the ability to control the entire loan process from start to finish,
Emergency help – they are able to act quickly in times of despair.  

If you are experiencing difficulties pursuing a home equity loan during this pandemic and need help or some direction, you should contact a mortgage broker.  The mortgage broker will review your situation, lay out the potential options and secure you the help you need. To have a friendly phone call today to discuss your situation and see your options, get in touch with Jim at 604-620-2697.
​

• Credit score: ​The general standard credit score to get approved for a mortgage is 640. But when applying for a rental property mortgage, it is usually higher.
• History of late payments: In addition to good credit score and despite it, some lenders check for a history of debt repayment problems.
• Gross Debt Service Ratio (GDS): This is the percentage of the applicant's after-tax monthly income required to cover the costs associated with owning the property. The ratio should not exceed 32%.
• Total Debt Service Ratio (TDS): This measures the percentage of the individual's monthly income needed to cover all their monthly debt obligations. The desirable ratio is 40% or less.
• Stress test: The person must keep up with mortgage payments even if interest rates increase in the future.
• Other things: Other factors are the individual's income, employment records, general expenses, current debts, how much they want to borrow and the amortization period

​

Needing a home equity loan in Vancouver, Burnaby, Surrey, or elsewhere in the Lower Mainland? Renovating your home in Kelowna, but needing the funds to begin? Whether it's consolidating your debt or expanding your business, applying for a loan against your home equity can provide so many benefits. Home equity loans can be secured easily and quickly to help you with the following:
 
+ Consolidating Your Debts
+ Paying Property or Income Taxes
+ Home Renovations
+ Expanding Your Business
+ Anything You Need or is Unexpected!
 
What exactly is an equity loan, and how do I get one in Vancouver (or elsewhere in B.C.)?
An equity loan is typically a loan secured against your property, behind your first mortgage. It represents an additional loan which is smaller than your first mortgage and based on your available equity.  An equity loan will permit you to borrow against the property value, less any mortgage owing on the property. The equity in your property is the difference between the current property value, less the balance of your first mortgage. 
 
Example:
 
Property Value:           $500,000.00 

less 

1st Mortgage:               $300,000.00
                                       
Equity:                        = $200,000.00 
 
Of the available equity, only a certain percentage may be utilized for an equity loan.  In most urban areas, you may obtain an equity loan up to 80% of the value of the property. This percentage of the value of the property is called the “loan to value – LTV” ratio. It is a number that lenders use to determine the level of risk they are taking on when lending on a secured loan.
 
Example:
 
Property Value: $500,000.00 x 80% (LTV Ratio) =        $400,000.00
 
less
 
1st Mortgage Balance:                                                         $300,000.00
 
=
 
Maximum Equity Loan Available:                                    $100,000.00
 
For existing property owners in Vancouver, Burnaby, or other cities in B.C., the equity lenders' LTV ratio will vary depending on the following factors:

2. Ensure there are no discrepancies or issues in your Credit Report.
As you read through your credit report, it is extremely important to take note of any errors, discrepancies and unusual activities/notes/dates.  You want to ensure all of the information about you and your credit is correct, accurate and current.  The next creditor to access your report will then have the most recent & correct information about you, which will help with their decision in granting you credit.  Also, you want to be certain there are no suspicious activities and your identity has not been compromised.  Identity theft is a very big problem and can claim anyone of us at any time.  It is best to be proactive and focus on protecting your credit and your identity, because if stolen and ruined, it will take years and thousands of dollars to claim back your innocence.  Contact the credit agencies directly if you notice any issues with your credit report.

 
3. Bring all of your accounts up to date.
Hit that reset button by paying all accounts that are slightly behind, in arrears or in collections, up to date.  Do whatever it takes to get the funds necessary to do this.  It is critical to eliminate any items which are showing derogatory or in collections, in your credit report.  This will kill any chances of getting any credit down the road.  Derogatory credit and collections are a black eye, and creditors will steer clear of you.  Try and bring your accounts up to being current and start your new year.  You must commit consistently on a monthly basis, make payments on time, even if the very minimum payment at least.  Further, then try and chip away at the balances each month until they are all paid in full.  Only use credit when absolutely necessary.
 
4. Set your limits and ground rules. 
It is a great idea to set the ground rules to using credit.  You might want to reflect on the types of situations where you might have foolishly used credit and regretted it.  Try and focus on how you will manage your purchases down the road. The best way to create focus is to ask yourself questions. Do I really need this? What alternatives do I have?...  It is easy to buy now and pay later, and so many get stuck in this patter.  In the end, credit runs out and all we have is a large bill staring right at us.  Some rules you may want to adopt may include:
 

• Always budget yourself and know your limits!
• Do not take on any payments you cannot afford!
• Do not use credit cards / credit lines to substitute the payments you cannot make!
• If you do not have the cash to buy, then don’t buy it!
• Only borrow what you can afford!
• Pay all bills on time!
• Review your credit report a minimum of once a year.

 
Remember, your credit should be protected and treated with the highest regard. Credit is important and allows us to maintain a certain standard of life, especially with the uncertainty we can find ourselves in very quickly. Credit also offers us the ability to take advantage of potential opportunities we make come across but do not have the funds to pursue. The list can go on. As one can see, the benefits of having and maintaining credit are numerous and critical to maneuvering through this financially complex world.
 
Create rules for yourself and how you manage your credit. Have a game plan, set your limits and you will see amazing results. 

For more information, reach out to us at info@yourequityloan.ca.