Tag Archives: Vancouver second mortgage

Vancouver Private Mortgage Lenders & Hard Money Financing

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.

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Demand For Second Mortgages in Vancouver Expected to Rise

Home owners demand for Vancouver second mortgages will go up due to dropping home prices, tight liquidity problems and tightened lending by Canadian banks. Many home owners are maxed out!

There are not many options for a home owner to deal with the problem. A major cut back in personal spending and getting rid of major financial obligations have to be made. A home owner’s personal and family finances will only improve when incomes and expenses are back into balance.

Second Mortgage Financing – A Short Term Solution

If a home owner has enough equity in his home, he may be able to take equity out to finance his emergency cash requirement. A home owner has to understand that second mortgage financing is only a short-term solution to solve his cash needs. A second mortgage may give a home owner the breathing space to sell his home at a more favorable price. Without a second mortgage to tie over the few critical months required by a home owner, his loss will be much more if his home is foreclosed.

A recent Global BC video segment “ BC Real Estate Foreclosures Explode!” high-lighted the huge increase in foreclosures in BC.

If you are in need of a short-term loan, and like to find out whether you can borrow the fund your required, you are welcomed to contact me at 604-721-4817.

Note: Second mortgages are governed by BC’s Mortgage Broker Act. Borrowers are expected to be provided with proper and full disclosures on the terms and conditions of the second mortgage loans.

Vancouver Mortgage Broker For 2nd Mortgages

Where do you find a Vancouver Mortgage Broker for second mortgages?

When a home owner is looking for a Vancouver Mortgage Broker for a second mortgage, chances are that he will search the internet to locate a Mortgage Broker nearby. In Vancouver, BC a search will turn up a few Mortgage Brokers who have the contacts and experience to arrange for the money required by the home owner.

What are second mortgages?

Second mortgages are loan contracts secured on real properties which already have prior first mortgage charges on them. Most second mortgages are private mortgage loans provided by private mortgage lenders. These private mortgage loans fill the gaps that some financial institution such as banks and credit unions are unable or unwilling to fulfill.

Private Mortgage Lenders

Second mortgages are secured high yield investments private investors understand, and at the same time have some control on the investments. A private mortgage is a relatively safe investment. Most private lenders capped their investment risks to not more than 85% of the real estates provided as securities. The interest rates payable on 2nd mortgage loan contracts are from 9% to 18% per annum.

Some common features of a 2nd mortgage are:

1). Financing up to 85% of house value.
2). Interest rates from 9% to 18%.
3). Term – generally from 1 to 3 years.
4). Payments – mostly interest payment only.
5). Lender/broker fees – varies from 4% to 8%
6). Approval time – may take 1 day to 5 days.
7). Loan funding – can be done in less then 10 days.

If you like to find out more information about Vancouver second mortgage, kindly contact James Wong at 604-721-4817