Everyone has their own borrowing style, and every lender isn’t a fit for everyone; it goes without saying that you should speak with a Toronto mortgage broker before you decide to borrow! Here we’re going to talk about private mortgage lenders and how they work. Make sure that it’s a good fit before you borrow.
Conventional Vs. Private
In Canada the rate of private mortgages has skyrocketed, and with good reason. Instead of having to grovel at some bank and hope that one lender approves you, private mortgages give you the freedom to shop and find the right financing for your needs. You shouldn’t have to hope that a single lender will give you a good rate, and you don’t have to! When lenders compete you save.
When working with a Toronto mortgage broker you’ll be able to find the right fit for your borrowing needs. You’ll be able to choose from both private mortgage lenders and conventional mortgage lenders to see who will offer you the best interest rate. You’ll be able to separate lenders by different interest rates, mortgage terms, repayment terms, and everything else to make sure that you’re getting the best one that’s right for you.
How to Get a Private Mortgage
Private mortgages are best found through a Toronto mortgage broker. They’ll be able to help you find the right lender for your needs. You’ll have to fill out an application like you would with any other kind of mortgage, then they’ll be able to go to different lenders. You can ask that they query both conventional and private lenders if you like; this way you know you’re getting the full spread of options and will be able to put any offers from a private mortgage lender in perspective. This type of mortgage isn’t for everyone and you’ll need to be very careful when you borrow.
Use a Mortgage Broker
Whatever type of mortgage you’re trying to get, you’re going to want to talk to a Toronto mortgage broker! They’ll be able to help you explore different options in your area (if you’re not in Toronto talk to one near you). They don’t get paid until the home is closed, they work for you and not for the bank. They’re a perfect advocate for making sure that you get the right mortgage for your needs. Why get a pre-packaged deal when you can get the right one?
Mortgage brokers play a vital role in the process, but you will still need to get pre-approved and do your research to make sure you’re getting the right mortgage for you. It’s the largest debt that most Canadians will take on in their lifetime, and you want to know that you can repay this debt. Our grandparents didn’t have mortgage burning parties when they paid off the note for no reason! Ask for a GFE (good faith estimate) of how much this mortgage is going to cost you monthly and overall. Visit our private mortgage page to learn more!