If you’re thinking about securing a mortgage through private lenders in BC, Canada, you may be wondering what they offer that traditional banks don’t. In fact, there are quite a few advantages to shopping around for a loan from a private lender rather than going through a bank. This can include the ability to obtain lower interest rates and better terms and the option of choosing your own lender and working with them directly on your application instead of dealing with a representative who could have conflicts of interest.
Here are the benefits of securing a self-employed mortgage through private lenders.
The amount of money you need to put down as a down payment on a home loan is based on the size of your house, but private lenders don’t require this type of down payment. Instead, they may require as little as 3% down payments for people who have been self-employed for less than five years or 5-10% for those who have been self-employed for more than five years. Some b lenders also offer special loans for businesses that want to purchase commercial real estate, such as office buildings or warehouses.
Securing self-employed loans through private lenders is much faster than traditional mortgage lenders. This is because the information, documents, and collateral required for a mortgage loan are less complicated. Banks have processes and procedures in place that need to be followed before any application can be processed. With private lenders, you don’t have to go through this process with them as they don’t have such processes or procedures in place for their customers. This makes it easy for them to make quick decisions about your application as long as you submit all the information they require in their terms and conditions.
If you have been working as an independent contractor or even if you have just started your own business, then chances are that you have lower credit scores than most people. That means that your interest rate may be lower as well. If this is the case, being approved for a better rate through private lenders could help save you thousands of dollars over time by getting a better deal on your home loan.
If you have been self-employed for any time, then there is no need to wait for an employer to verify your income before getting a mortgage from a bank or other lender. Private lenders can help, so there is no need for long lines at tax time either.
Many private lenders are willing to offer more flexible terms, so you can get an alternative mortgage. In some cases, you may be able to take out a loan with a lower interest rate than banks would offer. This can save you thousands over the life of the loan, allowing you to pay off your mortgage faster and with less debt.
Some private lenders do not charge any mortgage prepayment penalties for self-employed borrowers. This makes refinancing much easier because you won’t have to worry about making extra payments or paying fees if you want to reduce your principal balance or refinance again in the future. This is especially helpful if you plan on moving or changing jobs in the future and may need to re-qualify for a new mortgage loan.
A self-employed mortgage is an excellent option for those who have been self-employed. It can be difficult to qualify for a traditional mortgage with your self-employment income, so this type of mortgage is one of the best options available. It allows you to buy a home without worrying about having enough money to make monthly payments.