Private & Alternative Mortgage Solutions

What is a Private Mortgage? Private or alternative mortgage lending is a win/win for the borrower and lender - The lenders risk is capped by the security of the property, so they can offer reasonable rates, even in less than perfect situations. Rates on flexible mortgages are typically between 6.5-9%. Private HELOC's available. 2Nd mortgages start around 8.49% and are typically 10-15%. The higher the risk, the higher the rate. There can be one-time lending fees associated with alternative mortgages are typically 4-5%.

Alternative mortgage lending doesn't usually require the paperwork of a typical mortgage. Often, just home equity alone is enough for approval, sometimes a degree of backup is required but flexibility is still the name of the game. Mortgage loans a bank would not consider are easy and smooth in the private space. Consumer proposals, collections, judgements, and bankruptcy can all be worked with.

Private mortgages can make sense for anyone, regardless of your credit. Perhaps you have great credit and income and need to do some work to your house. You would like to access your equity. Perhaps you have a great rate on your primary mortgage with a big bank and don't want to refinance. A private loan may be the perfect solution. You can borrow the funds now and just blend it into your mortgage at the next renewal.

On the other hand, perhaps you are 2-3 months behind on your mortgage because of some surprise expenses or medical bills. A private lender will look past the missed payments because they have the security of your property.