With most cities across the Greater Toronto Area, the demand for alternative lending products has risen substantially. In response to this demand, the team at Mortgage Broker Store has decided to expand their service area into the city of Pickering. Their mortgage offerings will be able to fill a niche need as a source of financing for people with bad credit in Pickering. Unlike many other mortgage brokerages, Mortgage Broker Store services clients who have been turned down by conventional lending institutions.
Most if not all banks are cautious of whom they offer credit to. Most are wary of giving mortgages to people with low credit scores. This is because such people pose a higher risk to the lenders. Though it may sometimes not make much sense, most banks will not give mortgages even to those with a well-paying job or a substantial deposit in their name.
Things get even harder when a second mortgage is involved. The risk to the lender is much higher given that the first mortgage must be paid before the second one in case one defaults. It is for this reason, most banks will refuse to offer a second mortgage for someone already considered a risk in the first place.
One can get their credit score through Equifax, the leading credit bureau in Canada, or any credit bureau of choice. Most banks in Canada will only give a mortgage to those with a credit score of 600 and above. It is important for all lenders to check their credit score before thinking of applying for a mortgage through the bank. It is also important to remember that banks do not offer mortgages for those under bankruptcy or consumer control.
Anyone who cannot qualify for a bank mortgage can choose to seek financing from private mortgage lenders. A quick search for bad credit mortgage Pickering will reveal quite a list of private lenders willing to give mortgages to those with a low credit score. Mortgage Broker Store has connections with many of these lenders, and is able to offer mortgages for most cities and towns in Ontario.
Unlike banking institutions, private mortgage lenders offer mortgages based on the home equity as opposed to the borrower's credit score. Anyone can, therefore, qualify for a loan of up to 85% of the value of the home. In the case of a second mortgage, private lenders will divide the value of the first mortgage with the appraised selling price to get the loan to value ratio. This way, even people with low credit scores can secure second mortgages to their properties.
Securing a mortgage from a bank with a low credit score is an uphill task. Private lenders make it possible for home owners to secure second mortgages despite their low credit scores. The fact that private lenders consider the home equity and not the homeowner's credit score makes the processes of acquiring a second mortgage much easier for interested parties.
About Mortgage Broker Store
Ron Alphonso is the principal broker at Mortgage Brokers Store. He has been an active private lender in Ontario for over a decade and he comes with a wealth of knowledge and experience in private lending. He is a respected authority in this field and he contributes to local news and forums in matters private lending. He also offers invaluable input to people faced by bad credit and foreclosures, and those looking for alternative lending services at Mortgage Broker Store.
Mortgage Broker Store
Brokerage Number: 12800
Address: 100 Consilium Pl. Suite 200 Toronto, ON, M1H 3E3, Canada
Email: [email protected]