I have helped many clients with getting a private mortgage in Toronto. As a Mortgage Broker in Toronto it is my responsibility to help clients understand their mortgage financing options and present them with the best mortgage financing options for their situation, including getting a private mortgage in Toronto.
Did you know, that most of the clients I speak to don’t know much about what is involved in getting a private mortgage in Toronto or if it is a good mortgage financing option for them?
Well, as a Toronto Mortgage Broker, I decided to put this blog together to give you and clients like your quick introduction into what a private mortgage is. Here are some quick questions from clients and answers I have provided to help give clients a better understanding, I hope this can help you.
What is a Private Mortgage?
A private mortgage is typically designed as short term financing option provided by private mortgage lenders and is best used as stepping stone to get you to an institutional lender like a Bank or a Credit Union at the end of a private mortgage term.
But how does it work?
A private mortgage is a loan or mortgage charge which is registered real estate property. A private mortgage can be registered as a charge as either in first position, second position, third position or even fourth position on the title. A private mortgage term can range from a few short months to 1 or 2 years, it all depends on what the client is looking for in their financing options and what a private mortgage lender is willing to offer.
Who are Private Lenders?
Private mortgage lenders are mortgage lender, and can be either; a single individual, or groups of individuals, companies, investors or businesses or a private financial institution.
These private lenders are looking to invest in real estate and lend their money so they can make high returns on their investment. Private mortgages are typically referred to as interest-only mortgages or interest-only loans. What this means is that a Private Mortgage is mainly structured as an investment tool for a private lender and payments are calculated based on the rate of return the investor will receive by the end of the private mortgage term.
Why get a Private Mortgage?
Unlike Banks, Credit Unions and Alternate Lender who have strict guidelines when it comes to approving mortgage applications, private mortgages are not as strict. Private mortgages are typically more relaxed in their guidelines than Banks, Credit Unions, and Alternate Lender allowing for homeowners to qualify for and be approved fairly easily for a private mortgage in Toronto. A private mortgage is a great short term financing option and can help you get your mortgage approved fast and easy if you are encountering any difficulties with a Bank, Credit Union or Alternative Lender. Private mortgages and are not meant for as a long term mortgage financing option, as they can prove to become very costly if kept for too long. It is always best to check with me, a Toronto mortgage broker, when you are looking at getting a private mortgage in Toronto.
To get more information on a private mortgage in Toronto and see if it the best mortgage financing option for you, make sure to contact me today.
Toronto Mortgage Broker
Tel: (647) 464-3939
Mortgage Intelligence Inc.
Brokerage License # 10428