Private Mortgage
A private mortgage is a loan that, unlike traditional mortgages, is provided by a private lender such as an individual, a group of investors, or a corporation. Private mortgages can be a great option for those who are self-employed or have an irregular income, have a bad credit history or poor credit score, or have a property that a bank or traditional lender may not be willing to finance
What is a Private Mortgage?
A private mortgage is provided by a non-regulated lender and is often used when traditional banks decline financing.
Private mortgages can be a practical solution for those unable to secure financing through traditional banks. This can be due to various reasons, such as financial hardship, insufficient income, or a less-than-perfect credit history. While private mortgages may come with higher interest rates and fees, they offer a viable alternative for individuals seeking to leverage their home equity or obtain necessary funds.
If well-structured with a clear exit plan, a private mortgage can be a viable solution to maintain your property and benefit from future appreciation, despite the higher costs.
How do You Qualify for a Private Mortgage?
A mortgage renewal can be a useful tool that may save you money but that depends on your existing mortgage, your financial situation, and the market. Depending on the context a refinance may not be the option for you.
- The Property: Since private lenders are taking on a risk, they will look to appraise the property and secure their investment.
- Your Income: When taking out a private mortgage the lender will need to make sure that you can make payments so you will need to demonstrate your ability to keep up with payments via your income.
- Down Payment: The larger the down payment the lower the risk for the private lender and the better your mortgage terms will be.
- Equity: If you are refinancing your property through a private mortgage the lender will need to assess how much equity you have built up. The greater the equity the better your terms will be.
BENEFIT OF THE PRIVATE MORTGAGE
Access to Cash
Utilize the equity in your home to obtain funds for significant expenses like home renovations, educational costs, or consolidating debt. This option allows you to access necessary cash without liquidating other assets.
Alternative Financing
Private mortgages offer an alternative when traditional banks decline your loan application. This can be particularly useful if you face non-standard financial circumstances or have been declined by conventional lenders.
Flexible Terms
Opt for loan terms that align with your financial needs. Whether you need a short-term solution for immediate cash flow or a longer-term arrangement to manage your finances more comfortably, you can find terms that fit your situation.
No Need to Refinance
Secure additional funds while keeping your existing mortgage intact. This means you don’t have to disrupt your current mortgage terms, making managing your existing and new financial needs easier.
Let Us Help You Get the Best Mortgage
With experience assisting over 100,000 Canadians, we’re here to help you explore your options, compare rates, and find the mortgage that suits you best.
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(416)-660-9540
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