Private Mortgage Refinancing
“Private Mortgage Refinancing Watch Outs”
If you require private mortgage refinancing for a current private mortgage on a property you own, here are a few things to keep in mind for the time period before the a mortgage refinance will be required.
Regardless of the reason for the private mortgage financing, its going to be important that the mortgage is up to date with property taxes paid up in order to get the best potential refinancing options in the market place.
This is relevant whether you’re looking for a new private mortgage or an institutional mortgage.
If the mortgage and/or the property taxes are in arrears, there are likely going to be less interested lenders and the ones that are interested will likely require less favorable rates, terms, and conditions. While this isn’t always going to be the case, its certainly something to be mindful of.
Second, even if you are up to date on all your payments, its also going to be important to plan out your private mortgage refinancing action well in advance of the existing mortgage coming due.
Most private mortgages are only for a period of one year and there is no guarantee that a private lender is going to be prepared to grant you an extension, even if you have never missed a payment.
If this situation occurs, the private lender has the right to exercise the pledged security in order to get repaid.
This can result in a notice of sale for the property, which in some cases can end up being listed for substantially less than its worth.
If this were to occur, a below market value listing can make it difficult to get private mortgage refinancing from other lenders, based on what you would consider the true market value.
As previously mentioned, most private mortgages are only for a period of one year, and a single year of time can pass by pretty quickly, so its almost necessary in many cases to immediately start working on your private mortgage refinance as soon as the initial mortgage is closed to make sure you have your exit strategy in place to play out the mortgage at the end of the term.
Leaving the mortgage refinancing process to close to the end of the loan term can lead to disastrous results in terms of both your financing options and protecting the equity you hold in the property.
If you are in need of private mortgage refinancing some time within the next year, I recommend that you give me a call so we can quickly review your situations and discuss potential private mortgage refinance options available to you.
Click Here To Speak With Toronto Private Mortgage Broker Joe Walsh