Sarah Colucci's Mortgage Blog
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Borrowers Can Now Get A Mortgage Loan in 24-28 hours Without An Appraisal, Lawyer Or Income Verification.Read Now
If you need a loan of $40,000 or less, here's a solution for you that doesn't require a lawyer, an appraisal or income verification.
The Prompt Financial (“Prompt”) loan has recently been made available by Prompt Financial through the broker channel in Ontario.
The main benefits of the loan, which can range from $5,000 to $40,000 (recently increased from $30,000) is the short turnaround time for funding. Funds are directly deposited into a borrower's account in 24-28 hours. In addition, borrowers can be approved without income verification, a property appraisal or even the need to incur costs associated with hiring a real estate lawyer. Add this to the fact that it reduces the total cost of borrowing, the Prompt loan is surely a win.
In order to qualify, borrowers must meet the following requirements:
Why is the Prompt loan better than a private mortgage?
Although private mortgages are usually approved based on equity alone, which does make it easier for borrowers to qualify, a private mortgage still requires an appraisal and a lawyer to register the mortgage on title.
Additionally, private loans have stricter, more rigid terms. For example, most private lenders do not allow prepayments without a three-month interest penalty and tend to include other built-in costs in the commitment which can drive up the total cost of borrowing. Although Prompt’s loan also has fees involved, the base interest rate is substantially lower than that of a private lenders’ and it is considered “open”, which means it can be repaid at any time during the term without penalty.
If a borrower requires $40,000 or less, the Prompt loan is a no-brainer.
If a borrower is looking for a loan that is $40,000 or less, the Prompt loan can be a very convenient solution.
Private mortgages can take weeks to administer and fund due to the different steps needing to occur in order to successfully complete funding.
These can include an appraisal being completed to verify property value, the time it takes the mortgage file to be sent to a lawyer (sometimes two lawyers when a different lawyer is required to act on each side), the final signing at the lawyers’ office and the completion of final registration through land titles. In contrast, the Prompt loan is deposited directly into a borrower’s account within 24-48 hours without the added legwork and timelines.
It Saves Borrowers From “Breaking” Their Existing Mortgage.
Most borrowers tend to seek out refinancing when they need some extra funds to perform a complete debt consolidation, or to fund a project such as a renovation or a child’s education. Refinancing can be costly because in addition to having to pay for an appraisal as well as a real estate lawyer to register the new mortgage on title, borrowers are often subjected to prepayment penalties by their existing financial institutions which can range from a few thousand dollars to $20,000 or more depending on their original mortgage amount and the interest rate differential calculation charged by their financial institution.
When the penalty is deemed too costly, borrowers tend to be inadvertently pushed to borrow from alternative or private lenders which can add substantial costs to the entire mortgage process.
The Prompt loan allows borrowers to access money quickly and conveniently without sacrificing the interest rate held on their first mortgage or paying any penalties to break it early.
What Are Some Reasons Someone Would Need A Prompt Loan?
The Prompt loan can provide fast money in the following situations:
How To Apply.
It’s very easy to apply for a Prompt loan. Simply fill out the application HERE, and have the following documents on hand.
Driver’s Licence or other Government-issued identification.
Once the application is completed, we will call you to finalize the process on the same day. If approved, funding will be completed within 28 hours right into your bank account.
By: Sarah Colucci
Senior Mortgage Agent, Lic. M14000929