Who Are Private Mortgages Best for?

private mortgagesMortgages can be very difficult to figure out, after all it’s not a bank loan, it’s not exactly a traditional mortgage, but it does help you get the financing you need to buy a home. One of the worst parts of borrowing from a private lender is that you don’t really know the lender. Instead of trying to figure it out on your own, when you work with a Toronto mortgage broker like us, we’ll have everything you need to figure it out. Why struggle and try to get a good private mortgage lender on your own, when we can help you find a private mortgage, the one that best suits your needs?

There Are Few, If Any, Eligibility Requirements

One of the best reasons we love private mortgages that there are few, if any, eligibility requirements for borrowers. If you have bad credit, no credit, slow pays, no pays, or have had troubled past obtaining a loan or credit this could be a best bet to get financed to buy a home. If you do you have bad credit you could pay more in interest, so be careful.

You can fix bad credit by working on your credit report, building new credit accounts, making yourself more presentable to lenders. We can help you there, just talk to one of our Canada mortgage brokers.

Lenders Love Them

Lenders love private mortgages – they bring a decent profit, the risk of default is actually quite low – and if a borrower can’t repay, the lender can take their home. It’s a high earning well-structured debt that can be a big earner for the right lender. Like all other kinds of lending, it can be risky for both parties.

Understanding Private Mortgages Is Key

Many people enter into this kind of agreement without understanding what they’re in for. This is not free money! This is a secured debt, and if you can’t repay the mortgage you could lose your home. Just like a conventional mortgage, there are limits on interest and payments that a lender can charge you as a borrower.

Sadly, a lot of people just don’t know what they’re doing. They may end up with a private mortgage lender that’s unscrupulous, that doesn’t take the long view when lending money; even worse, they could lose their home to someone just because they didn’t read their contract. This is where we come in! When you work with us as your Toronto mortgage broker we’ll help you understand the terms the agreement.

Always Have the Option to Convert to a Conventional Mortgage

One of the most important things you should look at when looking for private mortgages is the option to convert. Sounds a little religious, and in a way it is! Being able to convert your private mortgage into a conventional mortgage will give you the control you need to stay above water on your mortgage.

Private mortgages can be a great help to people who need them, but you always want to make sure you’re getting the one that’s right you. We’ll be there to help you through every step in the process, so give us a call today and save!