Whether you are in a time of need or on the path to fulfil your dream, a mortgage can be the helping hand you need. There are many kinds of mortgages in the market, private mortgages being one of them.
So, what exactly is a private mortgage?
Private mortgages are basically short- term and interest-only loans. These loans can be borrowed for a period of 1 to 3 years. Also, Interest only loans do not require the borrower to pay the mortgage principal down. Instead, you are only required to make interest payments each month.
These mortgages are offered by individuals and hence called private mortgages. So whether you are looking to spruce up your home or pay off any previous debts, you can opt for a private mortgage.
What can you use a private mortgage for?
To pay tuition fee
If you are unable to get a loan from a traditional bank
The plus point of opting for a private mortgage is lesser requirements and more flexibility. Most of the lenders would not ask for your income details and any other document which is required to procure a loan in a traditional bank. Additionally, the loan approval process is much quicker and faster.
Don’t let finances come in the way of your dreams!
There are times when our financial situation hampers us from pursuing a lifelong dream. It can be a particular type of home or a certain university that you’d want your kid to go to. With private mortgages, you can fulfil all your dreams and tick off all your checklists.
There are a few parameters that private lenders look at before lending you a loan:
Property type and value: This is apparently the main factor in being supported by a private lender. The sold property should be in acceptable condition and should go through a severe evaluation before your loan is processed. In case you have a bad FICO rating, you are viewed as a riskier customer and banks need to guarantee that their venture is secure, in the event that you default on your home loan.
Income: Incomes are categorized into two classes – confirmable and non-confirmable pay. Confirmable pay is preferred by private lenders and is demonstrated through Notice of Assessments (NOAs). Non-confirmable pay, which is normal among independently employed or commission-based representatives, requires moneylenders to gauge your income dependent on the run of the mill of your business.
Down payment: With a private mortgage, the loan-to-value proportion on the property is 85%. That is, you need to place in an upfront instalment of essentially 15% to be endorsed.
Private mortgages understand that getting a loan can be difficult at times. Hence, they offer flexibility to the borrower. So, choose a plan suitable to your needs and wants. And for more information/advice, you can give us a call right away.
We are happy to help you!