Private Mortgage Financing
How Private Mortgage Financing Works
Canada's major banks have strict rules and long approval processes by design, which can leave many Canadians without options in times of need. That's why AFO offers a true alternative to people, who for whatever reason - low credit, bankruptcy etc - fall outside of these strict parameters.
AFO’s concept is simple – if you don’t qualify for mortgage financing from a major lender, we may be able to help. Our approval and funding process is fast and easy for mortgages on all types of real estate including residential, commercial, multi-unit, and land throughout Atlantic Canada.
- Loan Term: All AFO mortgages are a fixed term for one year with the possibility to renew for an additional year
- Loan Amounts: Flexible
- Interest Rates: 12% to 15% per year
- AFO Arrangement fee: 8% to 10% of the loan amount
- LVR: Maximum 70%, including all fees
- Security Type: Real estate - residential, commercial, multi-unit, and land
- Location: We work with clients throughout Atlantic Canada. Other areas will be reviewed upon request.
More Info - FAQs
Can the arrangement fee be paid with AFO mortgage funds at closing (capitalized into the mortgage financing)?
It is possible for the arrangement fee to be paid using AFO mortgage funds at closing as long as the LVR is less than 70%.
Does AFO have minimum or maximum mortgage amounts?
As a guideline, AFO's minimum mortgage amount is $25,000.00 and $1,000,000.00 is the maximum. However, exceptions to this rule are possible.
Are there any upfront fees for an applicant during the application process?
There are no upfront fees to submit an AFO application. However, if the application is approved, all applicable fees shall be at the expense of the applicant (legal, appraisal, etc). All fees are clearly explained and itemized in writing for applicants during the approval process.
Why does AFO require an exit strategy?
This allows us to understand how the mortgage will be repaid. We are responsible lenders and as such must satisfy ourselves that the mortgage can be repaid without causing hardship to our clients.
Should the applicant seek legal advice during the application process?
AFO insists that all applicants receive independent legal advice during the entire process to ensure they have a complete understanding of all mortgage financing terms and conditions.
How long does the application process take?
Once the complete application has been received, verbal approval can be given over the phone. A formal Letter of Offer is generally provided within 48 hours. The speed and accuracy of the applicant's information will greatly affect the time it takes to complete the application process and close the transaction (fund the mortgage). One of AFO's business principles is timely closings for approved mortgages.
Is there a cost to extend an AFO mortgage?
Another arrangement fee shall be applicable to extend the mortgage for an additional 12 months. This fee is typically added to the principal of the mortgage.
