The residents of Barrie, Ontario, face some unique affordability challenges that can be solved by private lending solutions. The City understands the need for affordable housing and has recently changed its approach by revising a Community Improvement Plan as of May 2024. Part of the solution focuses on co-op housing.
The private lending market also provides some relief. These alternative mortgage providers offer a more streamlined application approach and different acceptance criteria. If you are looking for a private mortgage, you may want to contact a firm that specializes in this type of mortgage. Mortgage Broker Store in Toronto provides mortgages in Barrie and is both a mortgage brokerage and a direct private lending company.
Introduction to Barrie's affordability landscape and the role of private lending.
Private lenders are an alternative to more traditional banks and credit unions. They have a streamlined application process, and their requirements are less stringent. A private lender focuses more on the equity that you have in a property, which is based on the value of existing debts and the value of a home appraisal. Banks and credit unions emphasize credit scores and traditional stable employment histories.
Private lenders are a good option for people who struggle with credit scores during difficult economic times. Affordability is a crucial issue, and there's some good news in areas like Barrie. According to the Canadian Real Estate Association (CREA), the median sale price for a house was unchanged year over year. For the first quarter of 2024, it stayed steady at $789,900. The benchmark home price for the entire province was $893,200 on May 23rd, 2024.
Recently (May 2024), Barrie’s average price has been under the provincial average. If you're a homeowner with bad credit, needing a major repair, or undergoing an expensive renovation, private lenders can help.
Navigating Barrie's private lending market: options and considerations.
Private lenders in Barrie can also offer both first and second mortgages. The money borrowed using these mortgages can meet many of your urgent financial needs. There are other options and considerations.
As the name suggests, a second mortgage in Ontario involves financing a home or other property that already has a mortgage. Private lenders in Barrie accept a higher risk for these types of loans. They ask for over 25% of equity amassed in any property and an appraisal to start the process.
The most recent statistics from AreaVibes show that the population of Barrie is 159,618. The median age is 38.4, and 63% of the people there are married couples.
Practical tips for Barrie residents seeking private lending solutions.
Homeowners in Barrie facing foreclosure or power of sale can have either one stopped with a private mortgage. In Ontario, the power of sale is the more common method used. With the power of sale process, the homeowner has ownership of the property, but the lender can sell the house. The foreclosure allows a lender to take all the equity and the title.
A property owner in Barrie with the first mortgage in a power of sale might get a second mortgage to pay the amount the first mortgage owes through a private lender. Private lenders approve these loans based on equity and not a credit score.
That means if you live in one of the neighborhoods in Barrie, like Alliance, you can get a bad credit mortgage if needed. Employment in that area has a lower rating than in some of the other neighbourhoods in Barrie, according to AreaVibes.
These private lenders don't follow the strict regulatory criteria of banks and credit Unions. However, some requirements still make them credible.
Regulatory insights: Understanding Barrie's specific licensing requirements for private lenders.
The regulations are stricter for banks and credit Unions as well as other traditional institutions. However, private lenders in Barrie still need to adhere to some rules to stay compliant. For example, these alternative lenders are regulated by the Mortgage Brokerages Lenders and Administrators Act, 2006 (MBLLA).
Private lenders in Barrie and other areas need to work with licensed and regulated brokers. That regulation comes under the Financial Services Regulatory Authority of Ontario (FSRA). You can check to see if the private lender and broker team you plan to use is licensed in the province by following this link.
The FSRA looks after ensuring agents and licensed mortgage brokers meet suitability and specific educational requirements. They have a code of conduct specific for the mortgage brokering sector that includes the work alternative lenders do. Part of that code is about providing services effectively and transparently.
Private lenders in Barrie are clear about the details they offer with their products. These alternative lenders provide services that reflect the needs of people in that area and beyond.
Interest rates and lending terms in Barrie: Reflecting market dynamics and affordability issues.
These alternative lenders have higher interest rates than traditional institutions. Part of the reason is that the loans they approve are of higher risk. However, the application process for private lending in Barrie is more streamlined.
These are useful products to cover rising expenses and affordability issues. You can use one of these to pay off high interest credit card debt or do renovations and home repairs that need immediate attention.
The repayment terms are generally shorter with this type of loan. One of the other differences from more conventional products is the fact these can be interest only loans offering lower payments but not touching the principal.
Are You Looking for Private Lending Solutions?
Mortgage Broker Store can help you with competitive private mortgage or loan rates. One of our priorities is loans that don’t meet traditional lending institution requirements. Unlike many competitors, we are both a direct private mortgage lender and a mortgage brokerage. Our team includes private lenders, brokers, and real estate agents. Let us help you prepare for and get a product that meets your requirements.
Email [email protected] or call 416-499-2122.