The terminology is basically interchangeable in the private mortgage lending field.
We are fortunate to work with a large cross section of Toronto hard money lenders that collectively can cover off most types of private mortgage funding requirements.
The term hard money lender refers mostly to private lenders being considered more of a lender of last resort due to some combination of distressed cash flow and/or credit on the part of a potential borrower.
Because there is very little margin for error with higher risk equity loans, private lenders need to respond quickly to any mortgage default in order to protect themselves against investment loss.
The no nonsense approach taken by many private lenders coined the term hard money that is still used in the market place today.
In reality, all private mortgage lenders are investors looking for good, solid mortgage lending opportunities where they can effectively manage their financial risk.
The cost of a hard money mortgage, like any other type of mortgage, is in keeping with the risk that a private lender is being asked to take.
For instance, a borrowing request where there is good equity, good cash flow, and poor credit is going to attract better rates than a situation where there is good equity, bad cash flow, and bad credit.
Each Toronto hard money lender will also have their own lending/funding requirements as well as the types of deals, and loan limits, they are prepared to entertain.
My role as private mortgage broker is to pre-qualify all requests for funding that are suited to hard money and direct them towards the Toronto hard money lenders most relevant for any particular financing request.
If you are in need of a private mortgage and would like to be introduced to a Toronto hard money lender, then I suggest that you give me a call so I can quickly go over your requirements and determine which hard money lenders we work with would be most appropriate for your financing needs.
If you’re trying to locate hard money loans in Toronto, then you are effectively seeking out private money lending sources.
The term hard money is interchangeable with private mortgage financing for the most part and has become a term that is less frequently used these days, but effectively still has the same meaning and place in the mortgage financing market.
For our part, we are Toronto private mortgage brokers who arrange hard money or private mortgage loans to our clients.
These loans are secured by a mortgage against real estate which can be in first, second, or third position, depending on the specifics of the lending request and the equity available in the security being offered.
Most hard money lending terms are for a period of one year.
At the end of the one year term, the loan needs to be repaid in full unless the lender agrees to extend or renew the private mortgage commitment.
Toronto has abundant sources of hard money due to the strength of the real estate market and protection the market affords to individuals that choose to invest in private mortgages.
One of the hardest aspects of hard money is finding it when you need it.
Most hard money lenders do not source their own deals or have any sort of retail or street presence.
Instead, they choose to work through private mortgage brokers who are able to locate and qualify real estate property deals that meet the lenders requirements.
And while most mortgage brokers will claim to have direct access to hard money lenders, the relationship can be one or two degrees of separation away, adding complexity and potential delays to the funding process.
The best way to secure a hard money loan is to work with an experienced hard money broker that places private mortgages on a regular basis and has a track record of satisfied customers.
Because hard money loans are effectively equity based mortgages, the process for getting a loan in place from time of application to funding is typically two weeks or less.
If you are in need of a Toronto hard money loan right now, I suggest that you give me a call so I can quickly go over your requirements and provide some funding options for your immediate consideration.