Private Mortgages
If you have had trouble qualifying for traditional home financing, no matter the reason, you may want to consider private mortgages. Private lenders take the place of banks that may be unwilling or unable to accommodate borrowers who do not meet their strict criteria for conventional mortgage financing.
Second Mortgage
Perfect for a secured debt consolidation,
credit repair and renovations
and business loans!
When a Private Mortgage Might Be Necessary
All kinds of people seek private financing for their homes:
- Poor credit. If you have bad credit or lack a credit rating, traditional lenders may turn you down.
- Self-employed. People who work for themselves may very well make enough money to finance a home, but their records may show gaps or inconsistencies in their income stream. These gaps may appear as red flags to traditional lenders, who often turn down the self-employed.
- Property considered risky. Traditional lenders tend to avoid financing rental properties unless they are in an established neighbourhood. Private lenders look at each property individually to assess its potential.
- Bridge financing. If you are selling one home and buying another, you might need bridge financing to hold you over until your first home sells. Traditional lenders are generally uncomfortable with this kind of lending.
- Debt consolidation. Debt is a fact of life for most people. When they need assistance, many turn to the equity in their home for a debt consolidation loan. Private lenders tend to be more accommodating in this area than traditional lenders.
- Second mortgages. If you are seeking a second mortgage to obtain funding, whether for debt consolidation or to finance home renovations, you may get better terms from a private lender.
How Do I Arrange a Mortgage with a Private Lender?
A private mortgage is basically the same as a conventional mortgage. It’s just the lender who is different.
People who do not qualify for conventional mortgages often find success with private lenders. Private lenders are more willing to take a chance on "high-risk" borrowers and offer first and second mortgages when a borrower is turned down at the bank. But finding the right private lender takes work.
CMI mortgage brokers have access to a large number of private lenders, located across Canada. When you work with us to secure mortgage funding, we assess your individual situation, including any credit problems. We can then determine which kind of lender is best for you.
If you decide on private financing, we can work as your negotiator to secure the best terms for you.
Talk to Us About Private Lenders
Whether you are buying your first home or you want to borrow against the equity in your home, private mortgages are an option that is worth considering. Private lenders offer more generous criteria for lending money. With a CMI certified mortgage broker, you can tap into the capital available through these private sources.
To get started, complete our online form or contact us for a complimentary mortgage consultation.
