Mortgage regulations and qualification requirements can be strict, making it difficult for many people to secure a traditional mortgage. Therefore, increasingly more homeowners are securing mortgages from private loan providers.
If you’re looking for an alternative to a traditional mortgage, a private loan could be the solution you need.
Contact Us and start with a free consultation. As an experienced private mortgage broker, we will help you research private mortgage lenders and secure a private loan that suits your needs while protecting the lender’s financial interests in your property.
What are the risks of a private mortgage?
Although private mortgages come with a variety of benefits, borrowers must be aware of the risks involved. Before you make a large financial commitment to a private mortgage lender, whether it’s someone you know or a private mortgage company, you want to make sure the arrangements are in your personal and financial best interests. For example, before securing a private loan with someone you trust, whether it’s a friend, family member or another private loan provider, you must be comfortable with the loan’s interest rate and any additional requirements that have been implemented to protect the lender’s financial investment. Without enough research or preparation before entering a private loan agreement, you could put your finances and personal relationships in jeopardy.
Duggal Mortgages has an extensive history of helping individuals identify, negotiate and commit to private loan agreements.
If you’re considering a private mortgage, or if you’re not sure a private mortgage is the right solution for you, contact us today for a free consultation. We will help you weigh your options and ensure you complete your home purchase with confidence and security.
What is a private mortgage?
A private mortgage is a loan for a homebuyer that comes from a private source, such as a friend, family member, acquaintance or business. They are a popular solution for homebuyers who are not eligible for a traditional mortgage.
Unlike traditional mortgages, private mortgages are not issued by a bank or financial institution. Also, while traditional mortgages require a strong credit history to qualify for the loan, private mortgage lenders are much more flexible. If you can pay an adequate down payment, or if you have enough equity in your property, a private mortgage is much easier to obtain. On the other hand, to compensate the lender for the increased risk they assume, private mortgages usually come with higher interest rates.
Is a private mortgage right for you?
Plenty of people are choosing private loans for a wide range of reasons. If any of the following situations applies to you, a private mortgage could be the right fit.
- You don’t have an adequate credit history to qualify for a loan from a traditional lender
- You’re self-employed and unable to verify a steady income
- You’re not a legal resident in Canada
- You’re going through a foreclosure or your taxes are in arrears, which means you need access to emergency funding
- You’re purchasing a property that banks and other financial institutions don’t want to finance, such as a mobile home
What are the risks of a private mortgage?
Although private mortgages come with a variety of benefits, borrowers must be aware of the risks involved. Before you make a large financial commitment to a private mortgage lender, whether it’s someone you know or a private mortgage company, you want to make sure the arrangements are in your personal and financial best interests. For example, before securing a private loan with someone you trust, whether it’s a friend, family member or another private loan provider, you must be comfortable with the loan’s interest rate and any additional requirements that have been implemented to protect the lender’s financial investment. Without enough research or preparation before entering a private loan agreement, you could put your finances and personal relationships in jeopardy.
Duggal Mortgages has an extensive history of helping individuals identify, negotiate and commit to private loan agreements.
If you’re considering a private mortgage, or if you’re not sure a private mortgage is the right solution for you, contact us today for a free consultation. We will help you weigh your options and ensure you complete your home purchase with confidence and security.
