Private mortgages are a class of mortgage products where the lender is a private individual, group of individuals, or non-bank Mortgage Investment Company (MIC). These types of mortgages make borrowing possible for many Canadians who don’t have access to traditional financing, but they are also more complex and carry unique risks. Only mortgage professionals with the Mortgage Broker or Mortgage Agent Level 2 designation can deal in private mortgages in Ontario.
Determining whether a private mortgage is right for you depends on your full financial picture, goals, the purpose of the loan, and the strategy to repay or refinance the loan to a more traditional lender within an appropriate amount of time. Typically, a private mortgage is not the first option I will explore (I have had great success helping clients get out of private mortgages or avoid them by finding less expensive and less risky solutions), but they can be necessary in some situations.
In some cases, private financing can be arranged and funded in as little as 24-48 hours. This can help access equity to repay urgent debts quickly, close on a time-sensitive deal, or complete a purchase when other financing options fall through.
Whether you need longer amortization, interest-only payments, prepaid/no payments during the term, or the ability to repay the mortgage at any time without penalty, there are many ways to structure a private mortgage.
If mortgage financing is necessary while you rebuild your credit, private financing may be the only option available to you. Private financing can provide a more flexible and accessible solution during this critical period of financial recovery.
Struggling with payments makes refinancing with traditional lenders impossible. Private mortgage rates are often lower than credit cards or car loans, and consolidating debts can help you rebuild your credit.
If your current means to make mortgage payments is greater than traditional income verification can prove, a private mortgage may be the only option to secure mortgage financing.
Mike has the skills, experience, and values to ensure you navigate private mortgages in a way that protects you and helps reach your goals.
Book an appointment now to find out how we can help.
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