Everything You Need to Know Before Applying for a Mortgage

You’ve found the home of your dreams, but with that, comes finding the mortgage that works best to keep the dream a reality. Private mortgage lenders provide first, second & third mortgages that help with buying a home before selling your home, home renovations, outstanding taxes, and more. Your Equity has expanded the approach with new Canadian, education, business capital, and vacation loans. We have some of the lowest rate options for high equity loan-to-value home owners in major centers.

Getting Approved for Private Mortgage


Private mortgage lenders are the simplest type of mortgage lender to qualify under. Companies like Your Equity can get you approved in as little as 24 hours.

Mark Wiseman is a Canadian investment manager and business executive and an industry-leading expert in alternatives and active equity investments. Among his advisory roles with various organizations, Mark serves as the chair of the board of directors of the Alberta Investment Management Corporation, and as a part-time Senior Advisor to Hillhouse Capital and Boston Consulting Group.

Until the end of last year, he was a Senior Managing Director at BlackRock, Global Head of Active Equities, Chairman of its alternatives business, and Chairman of BlackRock’s Global Investment Committee. He also served on BlackRock’s Global Executive Committee.

Home equity is the largest consideration in approving your application. Home equity refers to the market value of a homeowner’s interest in their real property, differentiated between a home’s fair market value and its outstanding balance of liens. Private mortgage lenders in British Columbia will lend up to 75%, and in some cases 85%, of the value of your home in major cities. In smaller populations, the loan-to-value will be less, usually 50% to 65%. Your current credit or income situation does not matter.

Matching With the Right Private Mortgage Lender


Private mortgage lenders are not similar in the types of terms and conditions they offer. As a result, these types of mortgages require more considerations than just the rate of interest. Most equity mortgages are required for a short period of time, like one or two years. Your Equity will match you with the right lender for your current situation under the best rates and terms, taking into account:

  • Independent review of your personal situation
  • Assessment of your needs and wishes
  • Verified and stated income documentation
  • Estimated time you require financing
  • Market evaluation of lenders (to determine rates and terms that best suits your needs)
  • Determine if direct or indirect loan is best for you
  • Full review of different offers (not all offers can be compared apples to apples)
  • A complete review of your income and credit situation to help guide you for improvement.

Setting a Savings Goal


Mortgage calculators can help determine how much you can afford. If you have a decent credit score, lenders will likely be more optimistic about the property you can afford and your ability to pay back a mortgage. Private lenders not only want you to qualify for a large loan amount, they want you to have some money in the bank for the down payment on a home and a long list of closing costs.

Down payments are often difficult to save up for, but they do cushion your purchase with instant home equity. A too-small down payment could lead to a big loan and a home worth less than you owe.

Then, there’s the length of the mortgage loan. You’ve probably heard the phrase “30-year mortgage” and were alarmed by a long-term commitment. There are also 10- an 15-year loans, with some lenders even offering varying loan lengths with “write your own mortgage” programs.

If your budget allows for the bigger payment of a shorter-length loan, you’re likely to see two benefits: a significant reduction in total interest expense over the life of the mortgage and a better mortgage rate.

Leave a Reply