private lending
A private mortgage is an alternative loan source for when the bank says no. If you are unable to qualify for a mortgage, or need access to your money sooner than the traditional wait period of two or three weeks, our private financing might help meet your needs. Keep in mind, a private lender will not lend above 75% of the appraised value of the property.
Normally, private commercial mortgages are secured by larger, well established, companies that lend money as a way of doing business. The people who run these companies have expertise in quickly determining credit worthiness, which can help you get approved sooner. We know several private commercial mortgage lenders, in the $250 Million range and can get your mortgage approved quickly.
Most private lenders offer first and second mortgages. The rates on first mortgages can start as low as 5.99% and go as high as 12% depending on the risk involved including your personal credit history. Second mortgages are considered higher risk and therefore will normally start at 10% interest, going as high as 22% (depending again on risk). Not unlike CMHC, your private lender will charge a fee which, along with broker commissions, will be deducted from your loan.
Most companies that lend for private mortgages get their money from mortgage investment corporations. These are funds that have been established as an investment tool and are regulated by the provincial securities commissions.
CONSTRUCTION FINANCING
Construction financing can help you in an assortment of ways. You may need to hire an architect; you may have expenses of constructing a home, paying a general contractor, or paying for a building permit. It’s important to be knowledgeable of the different types loans that are available when you are seeking to finance your construction project. With us, we offer 2 types of construction financing:
1) The “all in one” construction loan:
This loan simply combines the construction process and the financing that is needed at the end of your project. Majority of these loans tend to span a one-year term during the construction of your new project.
2) Purchase plus improvements:
Perhaps your home requires a little TLC… with this loan there is some work required in getting contractor quotes. Typically, you’ll need some sort of temporary financing for the work to be done while you wait to get paid back at the end of your improvements. Most contractors just need a lawyer to confirm in writing that your funds will be available at completion.
There are a number of core factors involved in getting approval of a construction loan. Our extensive experience and expertise in brokering construction mortgages has afforded us access to all the top lenders in British Columbia, just another way we can help get your loan approved.
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Commercial mortgages
Many new business owners and investors find it hard to find the right lender for their upcoming venture. We’re here to work with you throughout the entire process and establish the perfect package to meet your needs. Whether you require financing to purchase commercial property such as warehouses, retail, multi-family housing, or apartment buildings - we will easily and conveniently arrange the best commercial mortgage plan that benefits you.
Typically, commercial lenders have many different requirements for each loan situation. Over the years Avantus has established many relationships with a large variety of commercial lenders looking to lend - as such, we can quickly leverage our vast data base of commercial lenders to effectively negotiate a suitable deal.
And if you’re currently a commercial property owner or investor looking to expand your business or portfolio, we’ve still got you covered - our resources are also available to assist in refinancing. Maybe you simply want better terms for your current arrangement. Maybe you need help with building renovations, franchising opportunities, expansion, or business costs - let us know and we’ll go to work for you.