Private mortgages are a great alternative no matter where you live, whether you’re in a big city in Ontario or in a small town in Quebec. Institutional lenders are not always ready or able to lend money to everyone, so private lending houses are a great resource for getting the money you need reliably and these are ready
to work with you. Most of the time, traditional lenders have to stick to strict loan instructions, making it difficult to lend to people with special needs. Private lenders, on the other hand, work closely with borrowers to ensure that all their specific needs are taken care of and met.
Whatever your financial situation and whatever type of mortgage you need, a private lender can probably give you a chance. If traditional institutions do not seem to be a good choice, consider doing business with a private lender and this could be the best decision for your financial future.
When should you choose a private mortgage lender?
Private mortgage lenders are excellent alternatives to more traditional mortgage lenders and, depending on your lifestyle and financial situation, they are almost always a great option. If any of the cases below match your current mortgage situation, then you should definitely consider working with a private lender. The specialized service of a private lender will give you peace of mind and help you through your respective mortgage path.
- If you want your repayment terms to be more lenient
- If your debt ratio is too high
- If you recently went bankrupt and found that it hampers your ability to get a mortgage
- If a past life event has greatly affected your credit rating and prevents you from getting a mortgage from a more traditional lender
- If you want to buy land or a house and do not have enough money to cover a down payment
- If you have below-average income or unconventional source of income and find that it affects your ability to qualify
- If you want a second mortgage to finance renovations
- If you want to buy a unique property
Why choose a private mortgage
Choosing a private mortgage, even if you are able to get one from an institutional lender, could be the best decision for your future. Most people view private mortgages as an option of last resort, but that is not the case. Private mortgages are for everyone, especially those who want a personalized experience and an easy-to-understand process.
There are many differences between private lenders and traditional lenders; depending on your situation, one of these differences can help you choose the best option for you.
The application process. Private lenders often have online applications that do not focus on controlling every aspect of your financial life, but rather getting you the money you need.
A personalized service. With a private lender, you receive a much more personalized service. The mortgage specialist you work with will ensure that he knows all aspects of your situation to provide you with the best options.
Freedom of choice One of the best things about a private mortgage is that you choose who you want to work with. Often, people who choose to go with a traditional lender must work with the only bank that will approve them. This can be limiting and you do not have a say in the process. There are more options available for those who choose private mortgages.
Doing business with private lenders
Working with the right private lender, the one you’ve heard good things about and good skills, will be similar to working with a traditional lender. People often associate banks and other traditional lenders with stability and experience, which is true, but if you choose the right private lender, you will have all that experience and more. Private lenders want to work for you and with you to get the mortgage you need. If you are still suspicious about which type of lender to choose, here are some suggestions:
Ask questions. If you had to meet a traditional lender, you would probably ask a lot of questions and make sure you understand all the terms. Do the same with a private lender. He will be happy to answer all your questions and concerns.
Be prepared. Do your research yourself, check the reviews online and make sure the private lender you choose is the best for your situation and needs. Have a good understanding of your finances and know what you are willing to accept and not accept. Your private lender will be ready to meet you, be it too.
Understand the costs. A mortgage loan comes with additional fees and charges, no matter who you choose to borrow. So the best thing you can do is know what these fees are before making your decision. All lenders, whether private or institutional, have their own set of costs so do not choose a lender unless you are comfortable with what it offers you.
It’s about your money, your future, and your home. If more traditional lenders can not provide you with the mortgage you need, then it is in your interest to choose a private lender. With a this loan, you will have more flexibility and peace of mind that your lender is there to help you every step of the way.