What is the penalty fee if I reimburse my loan before the end of the term?
The equivalent of 3 months of interest.
Can I transfer my private loan to a third party?
Yes, if the lender approves the new borrower.
Do I need to have my property evaluated?
Yes, the evaluation is mandatory to determine your property’s market value.
Can I choose the notary?
No, the notary is always of the lender’s choosing.
Can I renew the loan at the end of the term?
Yes, it is possible to renew the loan when it comes to term; however the decision is at the lender’s sole discretion.
What is my monthly obligation?
You must simply pay the interest on a monthly basis. The capital borrowed is due when the loan comes to term.
What is the processing fee?
This is our fee to analyze and handle your financing request. This fee can be added to the amount of the loan.
What is the loan-to-value ratio (LTV)?
The loan-to-value ratio describes the relationship between the mortgaged amount and the market value of your property.
If your property has a market value of $500,000 and a first mortgage of $250,000, the loan-to-value ratio is 50%.
First mortgage LTV = $250 000 / $500 000 = 50%
If you have a second mortgage of $100,000 (the two mortgages total $350,000), then your loan-to-value ratio increases to 70%.
LTV for the two mortgages = ($250,000 + $100,000) / $500,000 = 70%
Lenders use the loan-to-value ratio to assess the risks and to base their decision about the loan amount and interest rates at which to lend.