Buying a home requires a big financial commitment, and you may shy away from adding any additional expenses to your purchase. But one expense that can be worth it in the long run is hiring a Private Mortgage Lender through a Toronto Mortgage Broker.
What can they do for you? Well, a Private Mortgage Lender is someone who can provide you with insurance to protect you if you have to default on your loan payments for your home. Here are some ways that a Private Mortgage Lender can be beneficial for you.
They can help you to buy when you don’t have enough saved for a 20% down payment
You may go into your search for a house with an idea of what you need and how much it will cost you, and you’ll put enough money aside for the 20% down payment that you expect will be required. But needs can change and so can the housing market. Or you might just find a home that has everything that you are looking for but something about it–maybe it’s location, for instance–makes it more expensive than you planned for. Instead of having to move on from your dream home, you can take advantage of private mortgage insurance.
Of course, working with a Private Mortgage Lender will cost you something, but depending on your situation over time it could cost you less and it can prevent you from having to pass up on buying a home now. If this is your first home and you are currently renting, continuing to save up for the 20% down payment you need may be difficult and take a fair amount of time. Paying monthly rent can feel like a waste if you have the ability to buy, but just needs a little help.
They can in some cases be used just until you have paid off a certain amount of your loan
Depending on the type of loan you have, you may only have to pay for private mortgage insurance until your loan has been paid off past a certain percentage of its original value, such as 78%. This means that once you move into your home and your financial situation is stable enough that you can regularly pay off your loan, your monthly mortgage payments can become reduced, less whatever you paid monthly for the private mortgage insurance.
Overall, a Private Mortgage Lender such as Rakhi Madan can help you to purchase a home sooner rather than later.