Talking about Canada’s mortgage space, traditional banks still hold the maximum share. However, due to its stricter lending rules after the 2008 financial crisis, the sizeable market for private lenders is increased.
As private lenders offer several benefits over traditional lending, more Canadians show interest in the private mortgage. With fewer rules and regulations, a range of attractive interests, and a streamlined documentation process, the private mortgage has become the first preference of many people.
Let’s understand what private mortgage is and how it is benefiting Canadians?
What is a Private Mortgage?
Any mortgage which is not from a Bank is known as a private mortgage. These loans are mainly for the people who want financial help for the short term for improving their credit or consolidate their debts. A private mortgage is given by private lenders who are not federally regulated. So, they are not bound by any restriction and thus provide you with various advantages over traditional lending. By taking help of private lenders, you can even buy hobby home, agricultural land, vacant land, or an agricultural land with home easily.
Merits of Private Mortgage are:
Conclusion: All the benefits mentioned above of private mortgage clearly state that borrowers who wish to buy their dream home but lack a good credit score or any verifiable income must prefer borrowing from a private lender. Also, you don’t need to worry about the lengthy documentation process as everything will be done by the private broker himself
What is a Private Mortgage?
Any mortgage which is not from a Bank is known as a private mortgage. These loans are mainly for the people who want financial help for the short term for improving their credit or consolidate their debts. A private mortgage is given by private lenders who are not federally regulated. So, they are not bound by any restriction and thus provide you with various advantages over traditional lending. By taking help of private lenders, you can even buy hobby home, agricultural land, vacant land, or an agricultural land with home easily.
Merits of Private Mortgage are:
- Simple Qualification, Quick and Easy Application Process
- Better Interest Rates
- Inadequate Credit for Qualification
- Borrowers with Unverifiable Income can get loan
Conclusion: All the benefits mentioned above of private mortgage clearly state that borrowers who wish to buy their dream home but lack a good credit score or any verifiable income must prefer borrowing from a private lender. Also, you don’t need to worry about the lengthy documentation process as everything will be done by the private broker himself