5 reasons to apply for a private loan:
1 – Make a real estate
You intend to make a “FLIP” and conventional banks do not want to embark on your project. In short, you do not have the necessary income or the planned down payment to borrow with a Plan A Bank, you can turn to a private lender to present your new project in order to obtain a private loan. The mortgage broker will be your best intermediary in such a situation, he can advise you and direct you in your search for a private mortgage .
2 – Refinancing a proposal to the consumer through a private loan
You have made a “Consumer Proposal” and you want to fund the proposal in a new mortgage to restore your credit report faster. In short, some private lenders specialize in refinancing proposals to the consumer. It can refinance you at a relatively high interest rate, the advantage in such a situation will be to increase your credit rating more easily in order to regain good consumer habits. Take note that you must own a house and have good equity on it in order to decrease the risk of lending on the part of the private lender.
3 – Pay a late mortgage with a private loan
You have a mortgage notice that hangs from your nose and you must quickly find a private lender so you do not lose your home. In short, you are in a more difficult financial situation and you have not paid your mortgage for 3 months, the bank sends you a notice of seizure and you must pay quickly. The private lender will be there to finance you the delays accumulated on your mortgage, it will do it with relatively high rate of interest but you will be able to keep your home and you to make a financial health.
4 – Paying your debts
You have delays on municipal and school taxes, you have delays on your taxes and conventional banks do not want to finance you anymore, so you will turn to private lenders. In order to be able to keep your home and not having a legal mortgage from the Ministry of Revenue on your home, you will be able to direct you to private lenders to finance all of your delays. This is a quick and effective way to get you out of a financial pitfall.
5 – Consolidate debts with a private loan
If you have high-rate credit cards, personal loans or a second mortgage, you have a very low credit rating, you can do business with a private lender to help you consolidate your debts with the help of a private loan. A mortgage broker will help you find the right private lender to help you pay less and restructure your credit report. It can take from 6 months to 2 years but following this, you could probably return to a plan A bank to renegotiate a favorable mortgage rate.