Private mortgages can be some mysterious business, but once you break them down you’ll see that they’re pretty much the same as a conventional mortgage – only better! Here we’re going to talk about what mortgages offer, why more people are going the private mortgage route and how to make sure that this is the right choice for you. Remember to speak with one of our Toronto mortgage brokers before you start applying for loans; we’ll be able to help you understand what options you have available to you. Let’s get started.
What is a Private Mortgage?
A private mortgage is a loan for a home granted by a private lender. You’ll get access to private bankers, the ability to get bad credit mortgages, reverse mortgages, all kinds of mortgages. You’ll want to make sure that the lender you’re going with is the one that’s right for you. If you’re looking for a good private mortgage lender, talk to us! We’re Canada mortgage brokers that know which lenders will be amenable to your kind of borrowing.
What’s a Conventional Mortgage?
A conventional mortgage is the mortgage your parents and grandparents had – this is a bank mortgage. It could come from the government, it could come from a bank or you could even find a local credit union to work with instead. These kinds of mortgages will be a little harder to get; if you don’t have good credit or you’re just starting out, you may not be able to qualify for this kind of mortgage. It’ll just depend on where you’re at and if you have a cosigner or not.
What’s the Difference between the Two?
Conventional mortgages can be much more stable than private mortgages; they have so many rules behind them for a good reason. But since they have such backing, they can be choosey about who they lend their money to. It’s been shown that over the last 10 years 7 out of 10 people applying for a mortgage has been approved and credit scores on average are sitting at around 700 points. This sounds great – but this is just a section of the population.
If you have good credit and you have a good relationship with your lender, you might be able to get a great deal with your conventional mortgage. If you don’t have either of these things you might want to just consider going with a private mortgage instead.
Which One is Right for You?
It just depends on what you want, but as Canada mortgage brokers we know that the best way to go about it is to apply to both! Sometimes people with bad credit get a great conventional mortgage, sometimes people with great credit get a better deal with a private lender.
The important thing to consider with this situation is what lender you’re working with. It’s not easy to find a lender that will work with you, and that’s where we come in. We have the connections and the understanding of the mortgage market to help you get the one that’s right for you. Contact us today and see how you can save.