Maybe your credit score has taken a slight ding in the past or the idea is just considered too radical or risky by traditional financing institutions.
Whatever the reason may be, you might not be ready to give up on your dream just yet! However, you need the upfront investment to make it happen. Lucky for you, there is still an avenue open to you in Canada: Private mortgage lenders.
A private mortgage lender is an individual, group of people or business that do not form part of traditional financing institutions, such as banks, and wish to invest their on-hand money in short-term loans to make a profit. These loans are made on property like residential or commercial properties.
As private lenders, they have their own requirements toward both the borrower and the investment. A private lender tends to put more importance on the investment opportunity itself than the borrower’s credit history.
This makes them more open to a whole diaspora of new borrowers and investments that would get rejected out of hand by banks or other financial institutions. Although they also usually only invest in a certain area local to their own.
...pick the one thats right for you.
starting from
6.45%Term | Rate |
---|---|
HELOC | 7.2% (Prime rate) |
Lender | Rate | Term |
---|---|---|
Lendwise |
4.79% | 5 year |
First National Financial |
4.89% | 4 year |
RMG Mortgages |
4.99% | 3 year |
Street Capital Bank |
5.89% | 2 year |
TD Bank |
6.19% | 1 year |
Term | Rate |
---|---|
5 year variable | 6.2% (Prime - 1%) |
3 year variable | 6.25% (Prime - 0.95%) |
Term | Rate |
---|---|
Line of Credit | Starting at 7.2% |
Equity Loans | Starting at 6.5% |
Private Mortgages | Starting at 7.99% |
Private mortgage lenders are inherently slightly more riskier than traditional lenders or banks so you are well within your right to ask how you separate the good from the bad. Here are a few things you should keep in mind when looking for the best private mortgage lender for you:
Here are some reputable and established private mortgage lenders you can use to get you started. As you can see from the list above, private mortgages lenders aren’t always a one-glove-fits-all solution, so you should always look around with your unique situation in mind.
…by providing award winning customer service to each and every single client.
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