How to Get a Private Mortgage with Bad Credit in Sault Ste Marie
If you’re considering buying a new home or refinancing in Sault Ste Marie, chances are you can’t find a better time than now.
Home prices in the city have seen a massive decline of 85.8% from 2021 to 2022, measured between April 11 and May 9. This makes Sault Ste Marie a much better option compared to neighboring cities like Sudbury, which saw a 42.4% increase in house prices. , or Brampton, which saw an 18.6% increase from 2021 to 2022. The average price of real estate is even higher in Vaughan, where homes sell for an average price of $1.4 million in May 2022.
With the average price of homes sold in Sault Ste Marie between April 11 and May 9 averaging $145,000, it’s quite tempting to consider buying a home there.
However, if you have a bad credit score, it could complicate things for you. Unless you have the money to buy the property, you’ll need a mortgage, which isn’t easy to get with bad credit. A private mortgage is a good option to consider in this case.
What is a private mortgage loan?
A private mortgage is a loan offered by individuals or institutions to people who want to buy a home but have bad credit. Most people in Sault Ste Marie or the rest of Canada will need a mortgage to buy a new property, but poor financial health can always make it difficult for you. This is where private mortgages come in. These short-term loans are offered by private entities or individuals, so they are not as steadfast with their criteria as banks and other lenders.
For private mortgage lenders, it’s an investment, so they’re not strict about credit history or background checks.
This is handy if you have bad credit or an irregular source of income. Private mortgages generally last between six months and three years, and they carry a higher interest rate than ordinary mortgages or bank loans. On the plus side, you can take advantage of interest only payments and applying for private loans is much easier and funding approvals are significantly faster than banks.
What do I need to get a private mortgage in Sault Ste Marie?
For most private mortgages, you’ll need proof of income so the lender knows you can make your payments on time. If you are self-employed, most banks will be hesitant to give you a loan, but private lenders are more flexible and may simply ask you to provide additional documentation.
Aside from income, you will also need to put down a deposit of at least 25%, which is much higher than usual if you have good credit and are applying for a normal mortgage. If you have other property that you sold for cash or to ordinary buyers, you can use that money for the down payment and if there is any left over, use it to improve your credit score.
Where can I find a private lender?
Depending on where you want to buy your new home, condo, or second home, you should research lenders working in that area who can cover your mortgage. A good private lender should cover most of the city, if not more, and whether you want a house in Broadview Gardens or a second home in Bayview, the lender should have no problem granting you the loan.
Even if you want to buy property in smaller towns near Sault Ste Marie like Hayden, Garden River or Island Lake, you may still qualify for a mortgage from a private lender. One way to find a private lender is to go online and search for “private mortgage lenders Sault Ste Marie” or “private mortgage lenders Ontario”. You can also find them through a mortgage broker.
When you find private lenders, explore your lending options and ask them about all of their experience in the Ontario real estate market as well as their professional credentials before making your decision so you can be sure you are dealing with them. a reliable person or company.
What can I do to improve my credit score?
The first thing you need to do is commit to working on your credit score. It’s not impossible to recover from bad credit, but you just need to work hard to pay your bills on time and avoid missing or late payments. Also, before you do anything, you should review your credit report to make sure it doesn’t contain any errors –– almost a third of credit reports contain errors.
Private Mortgage Lenders in Sault Ste Marie
Whether you want to quickly sell your current home or find a trusted private lender, it’s about dealing with the right company.
Research the companies you are considering doing business with to make sure they can help you. If you would like to learn more about private mortgages in Sault Ste Marie, call Mortgage Broker Store at 416-499-2122 or visit our website for a free financial consultation.
We’ve been providing private loans across Ontario for decades, and with our personal advice, we can help you find a solution tailored to your needs.