A private mortgage is an ideal option for a borrower who does not meet the standard’s of a traditional lender. Private lenders are willing to take on higher-risk borrowers and properties. As a result of this, the borrower may incur extra fees due to the risk that the lender is accepting. At FamilyLending.ca, we will not stop until we find you the best possible rate. Listed below are the costs that could potential come with a private lending company.
Due to the legal services that are required to draft and close your mortgage, a fee of generally $1500.00 will be charged by your private lender.
To ensure that the value of the mortgage does not exceed the value of the property, private lenders will generally charge a fee to borrowers to cover the cost of having the property appraised. This fee is generally around $350.00.
Generally, it is the lender’s responsibility to pay the broker for collecting borrowers like yourself. However, the circumstances can potentially differ with a private lender, as they may not be willing to cover this cost. In the instance that the borrower is required to cover this fee, the fee will only be incurred if the mortgage is approved. Typically, it is free to consult with a broker. Consult with one of our experienced brokers at FamilyLending.ca
Property Inspection Fees
With a private lender, it is likely that you will be required to cover the cost of an home inspector. This way, your lender can ensure that the home you are interested in purchasing is in good condition and that it will hold its value throughout the term of your mortgage.
Private Mortgage Rates
Due to the fact that private lenders assume a much higher risk than traditional lenders, they typically require higher mortgage rates. There are a variety of contributing factors that will affect this rate, such as: credit history, down-payment amount, net worth, loan-to-value, the type of property you are purchasing, and property location. Contact FamilyLending.ca to receive quotes from multiple competitive private investors looking to serve you.