With the ongoing COVID-19 crisis, many Canadians have been greatly impacted by the financial stresses it has caused. As you know, many jobs have been lost and, in some cases, businesses have been completely erased. Financial setbacks and ruin are so common and such a reality each day, and sometimes banks and financial institutions only have so much wiggle room to assist. If you try and get their help, it is a pressing uphill battle to meet their requirements. The loan qualification process through a bank is tough enough on the best of days, but with COVID-19 compounding problems, one can only imagine how much more difficult the process has become. As a result, in many cases they might not be able to help as quickly as needed.
Homeowners in the Lower Mainland presently are finding it extremely challenging trying to get mortgage financing through banks and other various institutions. Trying to refinance your existing mortgage or getting a new mortgage altogether seems almost impossible. The banks have tightened the rules and use overkill scrutiny with each loan application. Any little blemish on your credit report can spell certain rejection. Your Income amount, type of employment and time at your job will also greatly impact your chances of getting the loan. With the unemployment numbers rising, lenders are getting extremely concerned about repayment ability. As you can see, sadly the current situation is a mess for all parties involved.
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.
Silver Hill Blog
Jim Horvath is the principal broker and director of Silver Hill Mortgage Corp., arranging mortgage loans for over 25 years.