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.