A private mortgage is a type of loan which is offered by a private lender or a private company instead of a bank or traditional lender. In many cases, the interest on private mortgages is much higher than the interest charged by banks but still, people prefer private mortgages because of their benefits. WE CAN HELP YOU TO APPROVE AT LOWER CONTRACT RATE, INSTEAD STRESS TEST RATE. CALL ME @6479823313
Getting a home loan is not always an easy task. You need to go through a lot of trouble and find out the best options as per your needs. Most banks don’t offer loans to people with poor credit. So, here comes the need for a private lender. Private lenders offer loans to people with bad or no credit history and also helps them to improve their credit status. Along with this, private lenders can help you out when no one else does. So, choosing a private mortgage is your best bet when you are facing problems in getting a home loan.
What are the top reasons to choose a private mortgage?
In Canada, most people prefer private mortgages because of the benefits they offers. Also, getting private mortgages is very simple as compared to getting a mortgage from banks as it does not include high paperwork. Along with this, there are numerous benefits of choosing a private mortgage which is as follows:
Short term loans
In Canada, most of the mortgages usually last for 5 years but the time duration of private mortgages is only one to two years. So, private mortgages can help if you want to attain the property for a short duration. Also, it can help you to improve your credit history in one to two years so that you can apply for a home loan from a bank after finish up your short-term private mortgage.
A solution to poor credit
Banks or traditional lenders don’t offer loans to people with bad credit. So, If you have poor credit then, you are not qualified for getting a home loan from banks or traditional lenders. But, there are numerous private lenders who can provide you a private mortgage even when you don’t qualify for it.
In Canada, there are many brokers who can help you in finding the best lender that suits your need and financial position.
Beneficial for self-employed
Most banks don’t offer loans to people who are self-employed and who have numerous tax deductions. As the deductions can decrease the income which makes it harder for you to get a loan from banks or traditional lenders. So, in this situation, private lenders can help you out of your misery and can offer you a mortgage for your needs.
Advantageous for new residents
If you are new to Canada then obviously you don’t have enough credit history and also may face problems while proving your income. So, in this case, private lenders are your only choice who can help you in achieving your dream of buying a home in Canada. So, you must apply for a private mortgage if you are facing problems while getting a home loan from banks.
To buy non-conventional property
Certain banks don’t offer mortgages to buy a non-conventional property. So, if you are planning to buy a tiny home then, you must procure the services of a private lender to accomplish your dream.
Conclusion
Private lending options can cater to the needs of all types of people and also can provide flexible and better payment options as per your needs. So, you must choose the best private lender to fulfill your desires and for that, you must procure the services of a broker who can find the perfect lender for you and help you obtain a mortgage even if you are not eligible for it.
