Private Mortgage for HELOC
What You Need To Know
The interest rate on a home equity line of credit can vary based on your financial situation and credit score. The draw period is usually between 10 and 20 years. During the draw period, you can borrow up to the limit of the line of credit and then repay the loan in full at any time without incurring a prepayment penalty.
At Canadian Private Mortgage, our clients know that we won’t steer them into any products or financial terms that don’t fit their personal goals.
Our private mortgage for HELOC is ideal for homeowners who understand the benefits of leveraging the equity in their house for investment in an income-generating property.
Creative Financing For HELOC
Eligible Use for Home Equity Line of Credit
A Home Equity Line Of Credit (HELOC) is a flexible way to tap into the equity in your house. The fund drawn from a HELOC could help borrowers consolidate their personal debts, pay for college, or finance other big expenses. Borrowers just have to qualify once and have the option to withdraw funds multiple times from the HELOC at any time without requalifying for each draw.
HELOC Interest Rate
Typically, HELOC features a variable interest rate, which may increase when the HELOC is rebalanced. Because the benchmark prime rate set by the Bank of Canada rate could fluctuate, the HELOC rate reflects the same fluctuations
Maximum Loan Amount for a HELOC
The process of obtaining financing for HELOC with a private mortgage is much simpler than the process for traditional lenders. Although private lenders will still ask to verify some information to satisfy their internal lending guidelines, in general, it may actually be faster and easier.
Private lenders assess a mortgage loan application based on the allowable use according to the city by-law and its location in the neighbourhood. A property appraisal is certainly a requirement that borrowers will need to satisfy as part of the HELOC loan application process.
Generally speaking, private lenders will allow higher loan-to-value (LTV) than traditional banks and lenders. That means a higher loan amount borrowed through a HELOC.
Private lenders are an ideal option since they are not tied to the same lending guidelines as traditional lenders which is limiting. Unlike bank loans, private lenders focus more on the value of the property and cash flow potential from the commercial properties to determine the terms of the loan. This means that they will not make any preconditions on the borrower’s credit score or debt to income ratio.
A big advantage of hard money lending is that you can beat traditional lenders’ interest rates and timeframes. While traditional banks are known for their long loan terms, hard money loans can close in just days or weeks. This is important in large development projects, as time is money. Getting a commercial mortgage loan approved faster helps you complete the project faster and avoid delays.
Origination fee can also be referred to as “commitment fee”, or any other name. It usually refers to the underwriting or processing fee. This fee can cover a variety of expenses, from processing the loan to underwriting the loan. The amount of this fee depends on the lender and the type of mortgage loan. It is always stipulated in writing so there is no bad surprise to the borrowers on the closing day. If you are not sure how much you are paying for your origination fee, it is a sign that you are not working with an ethical private lender. Be aware and find other private lenders who are transparent with their origination fees.
At Canadian Private Mortgage, we disclose our commitment fee clearly in writing from the beginning of the process.
Pay Off Your Debts & High Interest Loans Now
Eliminate your credit card debt and rest easy knowing you're on your way to being deft-free.
Lower the interest rate and reset with a repayment schedule that fits your needs.
We help clients with various credit, income, and employment conditions.
Matrix Mortgage Global
5X Award Winning Mortgage Brokerage
2018 - 2022 Brokerage Of The Year
Canada's Mortgage Company
Recognized by Canadian Mortgage Awards
Recognized by Governing Bodies
RECA, FSRA, BCFSA
Proven Track Record of Growth & Excellence
Since est. 2008
Access our curated list of private equity lenders specializing in alternative residential and commercial mortgages.
What Our Clients Say
Andrea Chase, Hamilton, ON
I had 2 yrs left on my consumer proposal, with the 2nd mortgage offer by Matrix Mortgage Global I was able to pay off the proposal and re-establish my credit
Steve Darcy - Surrey, BC
I own a historic mixed use commercial/residential building that I wanted to modernize. Matrix Mortgage Global provided me with a term loan to complete the renovations
Blake Taylor - Banff, AB
I own a family bed and breakfast just outside Banff and ran into some tax arrears. Our bank turned us down for a commercial loan. Matrix Mortgage Global provided us with a 2nd mortgage which we used to pay off the tax arrears.
Canadian Private Mortgage - About
Easy access to private equity from Canadian lenders vetted and licensed in four provinces.