Private mortgage financing in Montreal

In Montreal, files are very diverse: condominiums, townhouses, owner-occupied duplexes and triplexes, small multi-unit buildings. Lenders assess each type of property differently, and that is often where a file is won or lost.

FERRES presents your application to private and alternative lenders whose criteria match your situation, then explains the terms obtained before you sign anything. The solutions available to Montreal homeowners:

• Private first mortgage
• Private second mortgage
• Debt consolidation
• Mortgage refinancing
• 60-day notice
• Urgent funding

The situations we see among Montreal homeowners often look like these:

• a self-employed worker or business owner whose declared income falls short of bank ratios;
• a plex owner whose rental income isn't counted the way they expected;
• a condo owner who has to pay a large special assessment voted by the syndicate;
• a homeowner whose credit file shows late payments or a recent consumer proposal.

Private financing isn't the right answer in all of these cases. The review first checks whether a bank or alternative solution is still possible.

Equity is the value of the property minus the mortgages registered against it. For a Montreal plex owned for several years, it can be substantial even if the owner's personal income is modest: that is precisely what private lenders look at first.

For a condo, the lender may also look at the health of the syndicate (contingency fund, upcoming special assessments). Gathering these documents early speeds up the review.

Credit cards, line of credit, car loan, tax balances: when monthly payments exceed what the budget allows, combining these debts into a single loan secured by the property can ease the pressure. For a Montreal homeowner turned down by their bank, debt consolidation through a private or second mortgage may be considered, provided the total cost remains lower than that of the debts being repaid.

Refinancing to fund work on a plex, buy out a former spouse or get better terms at maturity: these are frequent requests. When refinancing isn't possible with a bank, an alternative lender can sometimes step in for a transitional period while the file is rebuilt.

A prior notice of the exercise of a hypothecary right can come from the bank, a private lender or the City of Montreal for unpaid taxes. The 60-day period that applies to an immovable goes by quickly: gathering documents, the appraisal and the notary appointment all take time. The sooner your file reaches us, the more options there are to compare. For your rights with respect to the creditor, consult a lawyer or notary.

1. Application: you describe your situation, the amount you need and the purpose of the financing;
2. review: we examine the property, the available equity, your debts and the repayment strategy;
3. lender search: your file is presented to lenders whose criteria match your situation;
4. offer: you receive the proposed terms (rate, term, fees) before deciding;
5. notary: the mortgage deed is signed before a notary, who disburses the funds and pays the designated creditors.

For an income property, have your current leases and, if applicable, the rent roll ready. For a condo, the syndicate's documents may be requested.