Private Mortgage
Whether you’re planning major renovations, looking to consolidate debt, or facing unexpected expenses, a private mortgage offers a flexible solution when traditional banks aren’t an option. By tapping into your home’s equity or securing non-traditional funding, you can access the capital needed to achieve your goals or manage your finances more effectively.
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What is a Private Mortgage?
What is a Private Mortgage?
A private mortgage is provided by a non-regulated lender and is often used when traditional banks decline financing.
Private mortgages can be a practical solution for those unable to secure financing through traditional banks. This can be due to various reasons, such as financial hardship, insufficient income, or a less-than-perfect credit history. While private mortgages may come with higher interest rates and fees, they offer a viable alternative for individuals seeking to leverage their home equity or obtain necessary funds.
If well-structured with a clear exit plan, a private mortgage can be a viable solution to maintain your property and benefit from future appreciation, despite the higher costs.
What It Will Look Like
Bill recently filed for a consumer proposal. A consumer proposal requires you to pay off a portion of your outstanding debt, generally 50% of the outstanding balances, amortized over 7 years. It affects your credit score and can make borrowing very cumbersome and difficult.
Fortunately for Bill, his wife Janice wasn’t involved in the proposal and they still had equity in their home.
MonsterMortgage.ca raised the money as a second mortgage to pay off the proposal, 6 years earlier than required. This improved Bill’s credit and at the end of the one-year term, MonsterMortgage.ca placed the mortgage with a new, low-interest lending institution.
What It Will Look Like
The Monster Difference
Our Customers Are Our Priority
With over 25 years of experience, we’ll work closely with you to assess your eligibility for different debt consolidation options, considering your financial situation and both short-term and long-term goals.
Get All The Facts
We’ll spend time understanding your needs and providing you with all the details and options to make an informed decision. Our independence allows us to focus on working for you. We partner with numerouslend ers so we can find you the most advantageous deal.
Our Reputation
We are an award-winning Canadian mortgage brokerage firm with a weekly call-in show on CP24. We believe in giving back to our community. Over the years, we’ve proudly supported various community initiatives, including a 14-year partnership with the City of Toronto to raise millions of dollars for seniors.
Benefits
Access to Cash
Utilize the equity in your home to obtain funds for significant expenses like home renovations, educational costs, or consolidating debt. This option allows you to access necessary cash without liquidating other assets.
Flexible Terms
Opt for loan terms that align with your financial needs. Whether you need a short-term solution for immediate cash flow or a longer-term arrangement to manage your finances more comfortably, you can find terms that fit your situation.
Alternative Financing
Private mortgages offer an alternative when traditional banks decline your loan application. This can be particularly useful if you face non-standard financial circumstances or have been declined by conventional lenders.
No Need to Refinance
Secure additional funds while keeping your existing mortgage intact. This means you don’t have to disrupt your current mortgage terms, making managing your existing and new financial needs easier.
Want to Make Your Move?
Could a private mortgage work for you? Contact our experienced team to get answers, clarify your options, and make informed decisions.
FAQs
A private mortgage comes with higher interest rates and fees compared to regulated financial institutions. Considering the total cost and your ability to make payments is essential.
In most cases, you can borrow up to 80% of your property’s value. However, the amount can vary based on your specific financial situation.
The main differences between private and traditional mortgage lenders lie in lending criteria, processing speed, flexibility, and interest rates. Traditional lenders typically have stricter requirements, focusing heavily on credit scores and stable income.
Many homeowners use private mortgages to consolidate higher-interest debts into one lower monthly payment and improve cash flow.
In most cases, private mortgage lenders rely heavily on the appraisal with respect to marketability, value, and overall condition. Unlike banks, private lenders place less emphasis on credit scores and incomes, and more emphasis on the exit strategy as these are intended to be short-term solutions.
Let Us Help You Get the Best Mortgage
With experience assisting over 100,000 Canadians, we’re here to help you explore your options, compare rates, and find the mortgage that suits you best.
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