Private Mortgages- Who, What, Where, When & How

WHO, WHAT,
HERE IS THE
See how
WHERE, WHEN AND HOW MortgageGi rls
the

OF PRIVATE FINANCING! can quickly
determine if
your
home equity
qualifies for a
1 st , 2 nd ,
3 rd or even a
4 th mortgage.
Yes, we said a
4 th mortgage !

Martene Woodward & Jackie Woodward
Mortgage Associates, Argentum Mortgages
P: 866.932.8412 E: info@mortgagegirl.ca

CAN’T PROVE YOUR INCOME ? LOW CREDIT SCORE ? SELF -
EMPLOYED ? PREVIOUS BANKRUPTCY ? IN FORECLOSURE?
BANK SAID “NO ”? NEED SHORT TERM CASH ?

Whatever your reason is, we understand
and we are here to help. “NO” means
“YES” with the MortgageGirls! We will use
our 30 years of mortgage underwriting
experience and connections to a large
number of lenders to determine if a
private mortgage is the financing solution
for you.

WITH A PRIVATE MORTGAGE , YOU DON’T BORROW FROM A
BANK, LENDING INSTITUTION OR GOVERNM E NT AGENCY.
INSTEAD, YOU BORROW MONEY WHICH IS SECURED BY
REAL ESTATE FROM ANOTHE R PERSON OR BUSINESS. THIS
MEANS THE DECISION TO LEND IS BASED ON THE EQUIT Y
AND VALUE OF THE PROPERT Y BEING PUT UP AS
COLLATERAL AND NOT ON THE BORROWER’S CREDIT.
INTEREST RATES WILL BE HIGHER THAN CONVENTIONAL
WHO
LOANS AND THERE IS USUALLY AN UPFRONT FEE are
REQUIRED WHICH IS DEDUCTE D FROM THE INITIAL
MORTGAGE . BE AWARE THE RATES AND FEES CHARGE D
private
CAN VARY GREATLY DEPENDING ON THE BROKER YOU ARE lenders?
WORKING WITH AS THEY TOO WILL MOST OFTEN BE
CHARGING A FEE FOR THEIR SERVICES.


WHAT IS HOME EQUIT Y?
Home equity is the dif ference between what your home is wor th today
and what is presently owing on the debts which are secured by your
home. Most of ten, these debts are called mor tgages, however, there
are many other types of “debts” that can be registered against your
home such as lines of credit, liens or judgments .
Example; If your home is valued at $ 300,000 and you have a mor tgage of
$150,000 and a lien registered by Canada Revenue A gency in the amount of
$50,000, the amount of your home equity is $ 100,000. ($300,000 -
$150,000 - $50,000 = $100,000 )


Where your proper ty is located is an impor tant factor
in determining which private lender to approac h for
funds and what loan to value they will go to with the
loan. Your broker will determine this for you .

The loan to value is the amount of the loan ver sus
the value of the home. If your proper ty is located in a
small town many miles away from a major centre,
one private lender may only want to lend up to 60%
of the value.
WHERE
YOUR
Example ; 60% of a $300,000 home is $1 80,000. If PROPERT Y IS
you presently owe $ 150,000 , the question is will the LOCATED?
extra $30,000 be enough or do the Mor tgagegirl’s
keep looking for a lender who will go to a higher loan
to value.

Mar tene Woodward & Jackie Woodward
Mor tgage Associates, Argentum Mor tgages
P: 866.932 .8 41 2 E: info@mor tgagegirl.ca

WHEN WOULD SOMEONE GO TO A
PRIVATE LENDER?
The Mortgagegirls often say “bad things happen to good
people”. If you are going through a rough patch in your life and
have lost your job or are going through the breakdown of a
relationship, something may be disaf fecting your ability to go
through a bank or lending institution. This is a time where a
private lender may be the answer as they base their lending
decision on common sense and do not have to follow strict
guidelines.


1. WE ESTIM ATE THE VALUE OF YOUR HOME. WE DO THIS BY
ASKING YOU TO PROVIDE A RECENT APPRAISAL OR MOST
RECENT PROPERT Y TAX ASSESSM ENT

HOW
2. WE ASK YOU TO PROVIDE MOST RECENT STATEME NTS
CONFIRMING ANY MORTGAGE BALANCES OWING.

3. THE MORTG AGEGIRLS WILL THEN INITIATE A SEARCH OF
YOUR LAND TITLE TO CLARIF Y EXACT LY WHAT IS
do we start
REGISTERED AGAINST YOUR PROPERT Y the process?

4. WE DETERMINE TOGETHER EXACTLY HOW MUCH MONEY
YOU NEED TO COME TO A SATISFACTORY FINANCING
SOLUTION. IT IS AT THIS POINT IN THE PROCESS THAT WE
ADVISE WHETHE R THERE IS SUFFICIE NT HOME EQUIT Y IN
THE HOME TO PROCEED FURTHER


4. AND IF THERE IS ENOUGH HOME EQUIT Y, WE THEN ASK
YOU TO COMPLETE ONE OF OUR CREDIT APPLICATIONS AS
WELL AS PROVIDE WRITTEN AUTHORIZATION TO ORDER
YOUR CREDIT REPORT. ( WE MAY SKIP THIS LAST STEP IF
YOU ALREADY HAVE A RECENT CREDIT REPORT AVAILABLE
THAT YOU ORDERED YOURSELF ) HOW
5. THE MORTG AGEGIRLS WILL THEN FORWARD THIS do we start
DOCUMENTATION TO A NUMBER OF OUR PRIVATE LENDER the process?
CONTACT S ASKING THEM TO PRESENT US WITH A Continued
PROPOSAL TO EXTEND FINANCING.

6. WITHIN A COUPLE OF DAYS, WE WILL COME BACK TO
YOU WITH THE OFFERS AND DETERMINE WHICH ONE BEST
SUITS YOUR UNIQUE FINANCIAL CIRCUMSTANCES .


CHECK OUT OUR OTHER SLIDESHARE “HOW MORTGAGEGIRL
GETS YOU BACK TO BEST RATES” TO FIND OUT HOW WE CAN
WORK WITH YOU SO YOU DON’T HAVE A PRIVATE MORTGAGE
FOREVER.


Private Mortgages- Who, What, Where, When & How

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Private Mortgages- Who, What, Where, When & How