If you are looking for a mortgage investors company, Coinmortgage provides a connection between investors and opportunities within the mortgage and real estate market in Canada. The borrowers with whom we connect investors usually cannot secure financing for their loans from the traditional sources, such as banks. However, the reason for this inability usually has to do with past issues rather than present hurdles to making payments.
Banks have three main criteria when granting mortgages: a down payment (of at least 5 percent for high ratio loans and 20 percent for conventional loans), credit score and income verification. Coinmortgage helps those borrowers who are either having trouble establishing an income history that is satisfactory or meeting the credit score requirement, even though they have plenty of money on hand for a down payment and assets and income to make the payments on the loan they want.
Why would we work with these credit risks? At Coinmortgage, we recognize that seven years, which is the length of time that negative items stay on a credit report, is too long for people who have taken steps to improve their financial position. We have many clients who have the funds to put down anywhere from 15 to 30 percent down on a home, but they have other issues that are making the banks wary. Consider one example family. They went nine months between jobs, burned through savings and got behind on their car payments, barely avoiding foreclosure. As a result, their credit scores are still below what the banks want. However, after getting a new job, the husband quickly got his debts paid, brought the car notes current and started saving again. Since then, he has had a steadily increasing income, which is verifiable, but the bank won’t work with him because of that credit score. In two years, he’ll have a much higher score, because those items will have come off the report, and he can go to the banks then. Now, though, he could sign a two-year private mortgage and move into that new house sooner.
Another typical client for Coinmortgage is a dentist who has had his own practice for two years. For the first three months or so, the practice just broke even as he absorbed the cost of equipment and furnishings while building his practice. Since then, his income has trended upward, even though some months have brought in less income than others. Banks are giving him a hard time because of this, even though his credit score is pristine and he has 20 percent to put down. A private loan gives him the chance to buy the house he wants now while his dental practice builds a longer track record.
If you have some RRSP funds or other capital that you want to invest, Coinmortgage Mortgage Investment Consultants have borrowers that would like to use private lending services to get into the home of their dreams. By investing with us, you can receive a rate of return that is much higher than what you get from government-secured investments with risk that is low. Get in touch with Amansad Financial if you think you would like to discuss mortgage investment opportunities.