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Emergency Mortgage Loan

Everything You Need to Know about Emergency Mortgage

If your bank or broker cancels your mortgage financing at the last minute, you may find yourself in desperate need of assistance. Fortunately, there are numerous emergency mortgage relief and help options available for you to choose from. 

 

How Do Emergency Mortgage Work?

If you have been turned down by a bank or other lending institution, reapplying for a more typical mortgage through another institutional lender could take several weeks, which may not be suitable for you and your schedule. 

If your mortgage application was declined due to a negative change in your credit score, the procedure could take even longer because repairing a bad credit score can take a long time.

This is where an emergency mortgage comes in. 

emergency mortgage loan

Emergency mortgages are easily obtainable from private, non-conventional lenders who are not bound by traditional eligibility criteria like stress tests. They are typically processed much faster than traditional loans, and lenders are often more lenient in who they lend to. A private lender may approve the mortgage within an hour and fund it the next day, depending on the lender and provided you have all of the essential documentation on hand.

 

When Should You Get an Emergency Mortgage Loan?

There are a variety of reasons why your bank or lender can turn down your funding request at the last minute, some of the most common ones being: 

  • A severe decline in your credit score 
  • Sudden unemployment 
  • False information used on the application
  • Unstable career changes 
  • Property-based legal problems
  • Overwhelming total debt 
  • Unusual banking (withdrawal and deposit) activity 

Before you even start the approval process, our skilled team of mortgage brokers at Freedom Capital can assist you in accurately identifying any potential risks and concerns with your mortgage application.

We can also help you prepare ahead so that you don’t run into any issues when the deadline approaches. If you still want an emergency, we can help you obtain approval with our variety of lenders.

 

Commercial Emergency Mortgage

At Freedom Capital, we provide both commercial and residential mortgage. A commercial mortgage could be used to buy multi-unit residential complexes like condominiums or flats, office space, industrial buildings like factories or distribution facilities, and retail properties. 

Commercial mortgage from banks are more complicated to structure than residential mortgages, have higher interest rates, and take longer to approve. There are more elements in a commercial mortgage with an institutional lender that might lead to borrowers being denied funding at the last minute.

Fortunately, Freedom Capital specializes in connecting you with fast-close business mortgages in a variety of Canadian cities, including:

Ottawa, Hamilton, Vaughan, Richmond Hill, Thornhill, Woodbridge, Maple, and other regions of Ontario, such as Mississauga, Oakville, Burlington, Milton, Brampton, and more!

 

We deal with over 50 lenders around the GTA and Ontario. Our experience, knowledge and connections ensure we can easily cater to all your needs. We can offer you a free last-minute emergency mortgage consultation whenever you require one and can work with you to assess your financial condition and find the best mortgage choice for you!

 

Why Should You Use a Private Emergency Mortgage? 

While a typical mortgage can take weeks to get approved, an emergency home mortgage can be granted in as little as an hour and funded in as little as 24 or 48 hours. Private mortgage lenders, unlike big banks, are not required to follow the federal government’s mortgage stress test standards or limit their lending based on debt-to-income ratios. As a result, private mortgage lenders now have more options when it comes to their lending programs.

With Freedom Capital, you can find the perfect emergency mortgage for your needs with a seamless application process and easy funding.

 

Ways to Streamline Your Application Process 

There are a few things you can do to make the process of qualifying for an emergency mortgage go as smoothly as possible:

  • Ensure that all of the information you offer to your broker or lender is correct, up-to-date, and accurate in light of your current financial circumstances. Withholding information from your broker may cause your approval to be delayed or your mortgage application to be denied.
  • Avoid making any major life changes when applying for a mortgage. To appeal to lenders, you want to depict yourself as a reliable, risk-free borrower, yet uncertain living circumstances can make that difficult.
  • Make sure you have all of the relevant documentation prepared and ready to go ahead of time. Evidence of employment, proof of credit score, income tax filings, company license or articles of incorporation if appropriate, appraisal, and other documents may be required.
  • It’s a good idea to check your credit record before starting the application process to determine if a lender would approve you. If you have a high probability of being denied, this provides you with the opportunity to improve your credit score before applying.
  • Make sure you have enough money to make the needed down payment on your home.
  • To reduce the amount of your mortgage and make it easier to pay off, you should always put down at least 20% of the asking price. If you don’t have a 20% down payment, you might be able to get a mortgage with a 5% down payment. Discuss your alternatives with your mortgage broker.
  • Ascertain that you’re working with an experienced, professional, and knowledgeable mortgage broker who can assist you in achieving all of your home financing objectives.

An emergency mortgage can help if your funding is retracted at the last minute. This mortgage, however, isn’t a long-term fix for whatever caused your initial financing to be canceled in the first place.

Before your emergency mortgage term expires and it’s time to renew your contract, you’ll need to fix those difficulties in order to renew your with a standard lender and qualify for low rates.

Do you want to work with a team of seasoned brokers to find the best home finance option for you? Contact Freedom Capital today for a free consultation!

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