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Hard Money Lenders in Canada

Hard Money Lenders in Canada Canadian real estate is one of the most expensive investments one can make. This is why most Canadians borrow money to buy or invest property. There are different financing options that Canadian real estate investors can choose based on their financial status and financing needs. Canadian mortgages and hard money financing are two of the best real estate financing options for real estate investors.Hard Money Lenders in Canada

Mortgages are usually taken on by Canadian homebuyers to pay for a home they want to live in. To qualify for a mortgage, one must have 5%-20% minimum down payment. Canadian banks and financial institutions also check the borrower’s credit history to ensure that they are qualified.

Hard Money Lenders in Canada are Different

These are mortgages taken by Canadian real estate investors to finance fix and flip deals who might have taken coaching and or apprenticeship from

Canadian homeowners can also enjoy the benefits that hard money financing offers to fix and flip their own principal residence.

Top TEN benefits of using Canadian Hard Money lenders for real estate FLIPS

Hard Money Lenders in Canada are asset based private lenders

Hard Money Lenders in CanadaHard money financing is asset based refers to a short-term real estate mortgage secured by the value of a property. Canadian hard money lenders don’t care about a Canadian real estate investor’s credit worthiness as long as they have a property whose value exceeds the mortgage amount.

A Canadian real estate investor would approach the lender to finance the purchase and repair of a “fixer-upper” property.

The expectation is that the final sale value or after repair value (ARV) of the property would make enough of a profit to pay off the mortgage.

A Canadian hard money lender would typically ask for the property evaluation in “as, is” condition and after repair value (SRV) in the form of an AACI appraisal. They also loan to value estimates and the Canadian real estate investors plan to renovate or build the property.

Because the loan is secured by the property’s value, lenders don’t place a lot of weight on a borrower’s credit history. They would prefer to lend to someone that has a history of successful property flips or a larger down payment. Successful Canadian real estate investors carry less risk as they know their way around the property market.

Also, if a property deal doesn’t go as planned, the Canadian hard money lender is more likely to recoup their money if the borrower had made a large down payment. The sale of the property would cover the balance of the loan amount. This is why many hard money lenders need a minimum down payment of 5-35% of the property sale price.

Hard Money Lenders in Canada can lend 100% of Purchase price

Hard Money Lenders in CanadaThere are some 100% Canadian hard money financing that can lend you the full purchase value of the property with no down payment requirements. These “no money down” loans take into account the profitability of a real estate project.

Most Canadian hard money finance mortgages have a payment term of between one to six months.

Because of their higher risk and shorter payment period, interest rates are often higher than mortgage interest rates.

Most hard finance loans have an interest rate of 12-18% or higher, depending on your risk profile.

Hard Money Lenders in Canada are for Fix and Flip investors

Canadian Hard money loans also have origination fees called “lenders fees”. This is a set percentage of a mortgage amount that the lenders charge to process, fund and service a hard money loan.

These fees range from between 3-5% of the mortgage amount. So, if you borrow $200,000 on a loan that charges three percent lenders fee you will need to pay an extra $6000 on top of your down payment.

Lenders in Canada

Hard Money Lenders in Canada are private companies or individuals who lend out money to fund real estate deals. They are called “Hard Money Loans” or “Private Money Loans” can be a significant source of financing for Canadian Professional real estate investors needing short-term access to funds.Hard Money Lenders in Canada are private Canadian mortgage investors who will lend their private funds based upon the value of the property instead of your credit and income.
Hard money lenders in Canada

Hard Money Lenders in Canada have a variety of different rates, fees, and terms that you will need to become fully acquainted with. Rates and fees are typically much higher than conventional mortgages. When taking out Hard Money Lenders in Canada you will usually pay a fee ranging between 3 and 10 % of the loan amount; this fee is also known as paying “points.”

Hard Money Lenders in Canada typically lend for only very short terms, usually between 3 and 6 months. Hard Money Lenders in Canada should never be used in place of a regular mortgage.

When should you use a Hard Money Lenders in Canada?

Canadian Professional real estate investors are great for beginner Canadian Professional real estate investors who may not have money or for those who have bad credit and cannot qualify. Canadian Professional real estate investors also use hard money when they need to purchase quickly. Typically a Canadian conventional mortgage can take 15-30 days or more.

Using Canadian Professional real estate investors is also a creative way to finance a property. Most like to call it “Nothing Down”. If you can borrow enough money to buy the property, fix it up and then sell it under market value for a profit, then you’ve just made money without any of your own money. Sure it will cost you money to borrow that money, but the rewards out way the expense.

How can you find Hard Money Lenders in Canada?

There are few Hard Money Lenders in Canada waiting to lend you money. It could be your next door neighbor. The best way to find hard money lenders is to talk to a Canadian real estate investors club like  Another way is search online for Hard Money Lenders in Canada.

Who needs Hard Money Lenders in Canada?

People and Canadian Professional real estate investors who have spotty credit and urgent financing needs regarding real estate are the ones who usually make use of Hard Money Lenders in Canada. They have many to choose from – hard money loans include rehab loans, asset based loans, transactional funding, commercial hard money loans, and bridge loans.

The circumstances that create situations ideal for these private money loans are varied and often differ from person to person, and Hard Money Lenders in Canada can give them the option of loans tailor-fit to their ability to pay. The one characteristic of the loans are its accessibility when banks cannot be taken because of the time factor and requirements involved.

Hard money lending is for “hard” considerations – property is always the preferred collateral. If you think you can risk a loan to pay up a mortgage, or repair your house prior to selling it, but don’t have funds or proof of funds needed for a bank, hard money loans can be useful. Hard Money Lenders in Canada can be part of an entire deal involving several loans and closures. Often, the deal needs to be pushed through within a 2-10 day period.

In the event of missed payments, a Hard Money Lenders in Canada will act quickly to get the situation corrected with the borrower. If payments are not brought up to date right away, then the lender will take action against the borrower to gain control of the asset according to the lenders rights as a mortgage holder. The foreclosure process will vary from jurisdiction to jurisdiction which will impact the time it takes to realize against the security.

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