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Do you need help getting approved for a new mortgage loan, or are you having difficulty leveraging your existing home equity for a loan? If you own another property or have friends or family that own property, then you should consider looking into a multiple collateral mortgage loan. The average consumer has no idea that they can utilize multiple collaterals to obtain a mortgage loan. However, it is a commonly used tool by private mortgage lenders.
A multiple collateral mortgage works similar to an average mortgage. You simply need to provide more than one form of collateral. Typically the two most common types of borrowers seeking this type of loan are:
If a friend or family member put up their property to help you get approved, both of you will have to go through the same approval process to qualify for the loan (meaning that the lender will likely check both you and your cosigner’s credit history). Once the loan has been approved both parties become equally responsible for the loan, you are now co-borrowers.
Anyone can benefit from a multiple collateral mortgage loan, they are a great option for a variety of different borrowers, including but not limited to:
The great thing about multiple collateral mortgage loans is that they are a highly customizable solution. You’ll work side by side with a private lender who is willing to see beyond any past financial mistakes and help you achieve your future financial goals. And while this type of mortgage loan is definitely valuable to those with limited credit, they can be beneficial to any type of borrower who is having trouble getting approved by a bank for a variety of different reasons.
Generally speaking, you’ll have more luck getting approved for a multiple collateral mortgage from a private lender than a traditional lender, such as a bank. Traditional lender requirements and restrictions are frequently more severe, although they do accept some cosigned or multiple collateral mortgage loans. Nevertheless, private lenders are more willing to work creatively with individuals to help them achieve their goals; they tend to look at the whole picture and understand the borrower’s position. They place less emphasis on the rigid set of criteria that banks are more dependent on.
Want to know what type of lenders accept cosigners? Check out this article.
Yes. Lenders can often accept a guarantor’s signature if the guarantor is in a good financial state. However, guarantors cosigning on a loan for a riskier borrower may be asked to put up collateral as well.
Yes. However, as we said before if your lender decides that you are a risky borrower your cosigner may be asked to put up collateral as well.
Yes but mortgages are approved on a case by case basis. It completely depends on your financial standing and the financial standing of your friend or family member. You’ll need to discuss this with your mortgage lender.
If a multiple collateral mortgage loan seems like it might be the solution you’ve been looking for, then get in submit a request. We’ll help connect you with a third party licensed mortgage professional who can offer you the best terms for you.
Note: Loans Canada does not arrange, underwrite or broker mortgages. We are a simple referral service.
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