You should consider using a private lender in the following circumstances
Not everyone will qualify for a mortgage through traditional lenders. Institutional lenders are governed by strict lending regulations. Private mortgages are short-term, interest-only loans and they offer the borrower an opportunity to finance property over the short term while finding alternative ways to borrow money.
Private mortgage lenders are a great option for those who want a personalized experience, and who want to avoid the extended lead times and red tape required by institutional lenders. Private lenders are usually happy to finance property by up to 85%. Their primary concern is the value of the property rather than the history of the borrower.
Credit issues are usually one of the main reasons that a person would require a private mortgage. For example, a person coming out of bankruptcy may need more time to rebuild credit before a bank will consider giving that person a mortgage.
A prime mortgage lender is required to follow strict guidelines, which can make it difficult to obtain a mortgage. When working with private lenders, a common-sense approach is applied to lending that involves considering other important details resulting in a client now qualifying for a mortgage or mortgage renewal. Our goal is to make this happen for you. Are you having difficulty obtaining financing, contact us now to see how our common-sense approach is different. We work for you, to meet your financing needs.
Other reasons where people would seek private mortgages may include:
When someone currently in a consumer proposal who would benefit by paying off a mortgage through private financing, which will allow them to rebuild credit quicker
When someone who is self-employed that has difficulty providing sufficient proof of income to banks and other prime mortgage lenders