Vancouver Private Mortgage Lenders
Vancouver private mortgage lenders are mostly corporations or individuals that invest their money on second or third mortgages secured on properties provided by the borrowers. Private mortgage loans may be arranged through a Mortgage Broker.
Most private lenders capped their investment risk to not more than 85% of the real estate value. The interest rates payable on 2nd mortgage loans may vary from 12% to 18% per annum.
Hard Money Financing
As the term inferred, hard money financing has greater risk, hence the interest rates and borrowing costs are higher. The use of hard money financing is a last resort financing that helps to save the a borrower’s home from being foreclosed.
Home owners may resort to this type of financing to avoid foreclosure. The cost of losing a home due to foreclosure is much higher than the cost of getting “hard money financing”. There are private lenders who may provide such financing to home owners who are in hardship.
If you like to have more information on private mortgages or hard money financing, call me at 604-721-4817 for a discussion.