Mortgage Broker Store has been in the Ontario second mortgages business for more than 15 years. The company’s newest offering are Barrie second mortgages for property owners with bad credit or those that are self-employed. Their typical customer cannot qualify for traditional loans so they have to turn to other sources for funding. Banks require loan applicants to have a credit score of 600 points while credit unions will loan at 550 credit score. Mortgage Broker Store has access to a network of private lenders to assist homeowners who can’t get bank loans.
Second mortgages are a type of loan secured by real estate property like condos or houses. A second mortgage can be placed on a property with an existing mortgage and are typically provided by private lenders in Barrie. While credit score are very important for banks and other traditional lenders, private lenders concentrate on home equity. Using the value of debt and market price of the home, they can determine its loan to value ratio and decide how much money to lend. Most lenders can provide a mortgage of up to 80% of the value of the property. To further mitigate risk, some private lenders rely on job history and credit score to decide how much interest to charge. If a client defaults on payments, lenders have to sell off the property and recover their investment. A private lender who loans to above 80% of the property’s value is at greater risk of loss.
Mortgage Broker Store is under the leadership of mortgage broker Ron Alphonso, a renowned name in the Ontario real estate sector. When asked why people choose second mortgages over other types of funding, Mr. Alphonso explained, “Second mortgages are the cheaper alternative. They are a type of secured loans, which attract low-interest rates compared to other loan types. Some Mortgage Broker Store clients enjoy interest rates below 8%, which is especially beneficial when they need to borrow large amounts of money.” According to Ron Alphonso, “It is more practical for a property owner to pay around 10% interest on a loan instead of the whopping 29.9% interest charged on credit cards.”
Private lenders do not care how the money is used as long the mortgage payments are being made and the other terms of the mortgage are upheld. Second mortgages in Barrie are a common method of paying off credit card debt, property taxes and educational expenses among others. People who take second mortgages enjoy flexible payment plans suitable for their situation. Lenders that provide second mortgages have the ability to design custom mortgage terms, as they are not under the same restrictions by the government as banks are. With the private lenders, it is possible to skip a payment, take a break or even pay early without suffering fines or a damaged credit score.
Mortgage Broker Store staff are able to match different clients with the best loan for their needs. They listen keenly and then consult private lenders who can best meet the needs of their clients. The business provides other services besides second mortgages to meet the preferences of different clients residing in Barrie. Mortgage Broker Store provides home equity loans, debt consolidation loans, and other financial services. All the mortgage brokers and agents are licensed to issue loans and advise clients on the most suitable products. Different loan products have benefits and disadvantages, making it important to work with credible institutions like Mortgage Broker Store. For more information, interested individuals can contact the team at Mortgage Broker Store at 416-639-0786 or visit http://mortgagebrokerstore.com
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