Private alternative financing examples :
Mr. Layton of Laval (Real case, name and picture have been changed to keep the confidentiality of the client)
After years of planning, Mr. Layton finally began building his dream home himself. Located by the river in Laval, the completed house should be valued at $650,000.
Unfortunately, Mr. Layton ran into some problems during the project: he used up most of his initial budget ($300,000) on unforeseen expenses and cost overruns. He soon realized he wouldn’t have enough money to finish his project.
However, since construction had already begun, no traditional lender wanted to finance the end of his project.
Clic Hypothèque lent Mr. Layton the money he needed to finish building his house, i.e., $200,000, for a term of one year.
Mortgage : First
Rate : 10%
Processing fee : 3%
Term : 1 year
Amount : $200 000
LTV : $200 000/$650 000 = 31%
Mrs. Latour of Montreal (Real case, name and picture have been changed to keep the confidentiality of the client)
Mrs. Latour owns her own beauty salon in Montreal. Following her divorce, she accumulated a number of debts:
- Her credits cards were maxed out
and several payments were late.
- She was late on 4 months of mortgage payments.
- She owed $15,000 in income taxes.
She had just received a 60-day notice from her mortgage lender.
Her current property was worth $250,000 wit