Article provided by: Westrock Capital Corp
Westrock Capital are trusted private mortgage investors who work with multiple mortgage brokers throughout Canada to help our clients obtain private mortgage financing for all of their ventures. For borrowers who have been turned down for a loan in the past, it can be encouraging to learn that Westrock Capital Corp. is able to help secure the funds you need when you need it.
If you’ve never heard of a private mortgage, you may be surprised to learn that even if you have been turned down for a conventional loan, due to bad credit or other reasons, Westrock Capital Corp. may still be able to help you secure capital. Westrock has been providing private mortgage financing to Canadians since 1993.
Canadians often ask Westrock Capital to explain to them exactly what a private money mortgage is, and why private mortgage lenders would want to lend money to a bad credit borrower in Canada. Private money mortgages are loans secured by real estate made by a private lender/investor instead of a bank, lending institution or government agency. Private money mortgages loans are short-term (generally six months to two years) asset based loans made to the professional real estate investor for the purchase, rehabilitation or equity cash out of real property. This means that the decision to lend is based on the equity and value of the property being put up as collateral, not on the borrower’s credit.
The security for the loan is based upon fact that the loan will be for no more than 65%-75% of the appraised value of the income-producing property. Non-income producing property (generally land or vacant commercial property) can expect a loan to value of no more than 55-65%. Interest rates can be expected to be considerably higher than conventional loans, usually 4-6% above prime with interest-only monthly payments. The private mortgage investors who work with Westrock Capital in Canada make it possible for borrowers to obtain a loan when no other means are available to them.
Borrowers who may have had difficulties in qualifying for a more conventional loan often do qualify for a private money mortgage. Whether it is from credit troubles from the borrower’s past, excessive debt, or if the property is not producing sufficient cash flow to cover the proposed, the private mortgage lenders who work with Westrock Capital in Canada often have solutions. While a traditional lender may look to the property, the borrower, or his credit, private mortgage lenders in Canada are more concerned with the appraised value of the property.
The speed with which a private money mortgage can be closed is also of key importance to borrowers who opt for this solution. A conventional mortgage from a traditional source may take between 60 and 90 days to fund, while a private money mortgage lender can usually complete a transaction within 7-to-10 days.
If you need to raise capital for your venture, call Westrock Capital, we've been financing Canadians since 1993. After speaking with the experienced staff at Westrock at 877.995.1829 you’ll feel confident that you’ve made the right choice. Westrock is committed to your success.Private mortgage lenders Canada