Private Mortgage Lender Variety
“There Can Be Considerable Differences Among
Private Mortgage Lenders”
Private mortgage lenders tend to come in a variety of different shapes and sizes.
Contrary to the popular belief of many, there is no standardization among private lenders and not all private money is “really expensive”.
Private lenders, like any type of financial lender, have their own rate targets and in order to achieve those targets, they need to be realistic about the types of properties they are prepared to invest in, and the amount of leverage they are going to be comfortable with.
For instance, if a private lender wants to consistently earn an annualized return on their funds of 15%, they are going to have to be focused on higher risk opportunities. Sometimes, due to timing, high cost private lenders can still command higher rates in situations where the borrower does not have time to seek an alternative. But for the most part, this is not going to be the case, and lower rate deals will be able to attract lower rate private mortgage fees.
Some people will be surprised that private money can be secured in the 5% to 7% range for lower risk, lower leverage property.
But lower risk, and lower leverage is the key. Individuals with higher risk financing requests are not likely going to be able to attract mid single figure rates no matter how hard they try or how long they look.
In terms of rates, lender fees, and mortgage terms, there can be considerable differences among private mortgage lenders, creating real value for those that work at trying to match up their lending requirements with a private lender that is prepared to provide the best offer for a particular scenario.
The keys to achieving the best private mortgage rates and terms are 1) having enough time to find private lender offerings that are well suited to your needs, and 2) working with a well connected and experienced private mortgage broker who can get you speaking with private mortgage lenders that are a good fit for your requirements.
If you’re in need of a private mortgage, or would like to consider it as a viable alternative, I suggest you give me a call so I can quickly assess your requirements and provide private mortgage lending options for your immediate consideration.
Click Here To Speak Directly To Toronto Private Mortgage Broker Joe Walsh