Private Mortgage Lending Solutions

In certain situations, a private mortgage can be the best way to go. If we determine that a private mortgage is what works best for you, I’ll make sure you understand everything and that your experience is as comfortable and seamless as possible. You’ll be reaping the benefits of a private mortgage in no time and with no stress.

Let me handle the details, shoulder the stress, and worry about the specifics. I’ve done this hundreds of times. I’ll put your private mortgage on my mind. You can focus on finding your perfect home.

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Frequently Asked Questions

When should I consider renewing my mortgage?

You should consider renewing your mortgage when your current term is nearing its expiration date, typically within the last 120 days of your term. This allows you to explore new interest rates from various lenders. It’s a crucial time to review your financial goals, assess your current contract, and consult with me to determine the best option for your situation.

What happens at the end of my current mortgage term?

At the end of your current mortgage term, several options become available. You can choose to renew your mortgage with your existing lender or explore refinancing opportunities with different ones—a mortgage broker can help you decide. This is a critical time to reassess your financial goals, evaluate your current interest rate, and potentially negotiate better terms.

Can I switch lenders at mortgage renewal?

Yes, it’s possible to move your mortgage to another lender at renewal. However, it’s not guaranteed they’ll have better terms and conditions. When your current term ends, you can shop around and explore your options. While there are typically no costs associated with switching lenders at renewal, keep in mind that there may be penalties for breaking the mortgage before the renewal date.

What are the potential benefits of mortgage renewal?

Mortgage renewals offer several benefits:
  • If rates are lower at renewal, you can secure a new interest rate, potentially saving money on your mortgage payments. Keep in mind that the opposite is true if you renew in a higher-rate environment.
  • You can adjust the term length or amortization period to better align with your financial goals.
  • You can switch lenders to access better terms or new features.
  • You can reevaluate your mortgage in light of changing financial circumstances.

    What documents are required for the mortgage renewal process?

    The documents required for the mortgage renewal process may vary by lender and your individual circumstances. Typically, you’ll need to provide proof of income, a statement of your existing mortgage, and information about any outstanding debts or assets. Lenders may also request credit reports.

    Is it possible to make changes to the mortgage during renewal?

    Yes, it’s possible to make changes to your mortgage during renewal. These changes can include adjusting the interest rate, term length or even switching from a fixed-rate to a variable-rate mortgage, and vice versa. You can also consider making additional payments and altering the amortization period.

    How is the interest rate determined during mortgage renewal?

    Several factors determine the interest rate during mortgage renewal. The most significant influence is the current economic conditions, including the market interest rates set by the Bank of Canada. Your lender may also consider your credit score, financial stability, and the terms of your existing mortgage.

    What are the potential costs associated with mortgage renewal?

    There are typically no costs associated with mortgage renewal as long as the changes are made at your renewal date. If you decide to switch lenders, however, there may be a fee to discharge the mortgage from your existing lender.

    Can I pay off my mortgage early during the renewal term?

    When you’re mortgage is in a fixed contract, you can typically pay off an extra 15 to 20% per year without a penalty. If you switch lenders, the same is true. If you renew into an open mortgage, you can pay your entire mortgage off without a penalty.

    What happens if I miss the mortgage renewal deadline?

    If you miss the renewal deadline, many lenders will renew it to a six-month mortgage at a higher interest rate. If you switch lenders during those six months, there would be a penalty. But if you change mortgage products with that same lender during those six months, there typically wouldn’t be a penalty. If you want to switch lenders, you’ll have to wait for the six months to lapse to avoid a fee.

    How can I negotiate better terms during mortgage renewal?

    Negotiating better terms involves a few steps. Start by researching current interest rates and mortgage offers from various lenders. You can take this information to your current lender and express your intention to explore other options. This can often lead to a more competitive offer. Additionally, having strong credit and financial stability can improve your bargaining position. Keep in mind that when you work with me as your mortgage broker, I can negotiate these better terms on your behalf.

    Is mortgage insurance required during renewal?

    Mortgage insurance is typically not required during renewal if you’ve already gone through the initial approval process and obtained the necessary insurance. Mortgage insurance is generally mandatory for high-ratio mortgages where the down payment is less than 20% of the property’s value. Renewal involves renegotiating the terms of your existing mortgage, so if you’ve already met the insurance requirements, it doesn’t need to be reevaluated.

    Can I renew my mortgage if my financial situation has changed?

    Yes. In fact, mortgage renewal is an excellent opportunity to reevaluate your mortgage terms with your new financial situation in mind. If your income has decreased, for example, you can discuss different options with your current lender. Keep in mind that if you want to switch lenders, you’ll have to re-qualify. So, a negative change in your financial situation may make re-qualification more complicated than a positive change.

    Should I consider refinancing instead of renewing my mortgage?

    Refinancing involves replacing your existing mortgage with a new one, often with different terms or lenders. This can be a wise choice if you need to access home equity. Renewing, on the other hand, is an update to your contract, potentially with the same lender. However, you can also transfer your agreement to a new lender with better terms. This option is beneficial if you want to maintain the existing loan structure and don’t want to borrow more money.

    My mind and experience, in addition to your determination, are a winning combination. Together, with me shouldering the work and handling all the complicated details, securing your private mortgage at a sensible rate is all the more realistic a prospect. Best of all, you can enjoy more peace of mind.

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    What is a Private Mortgage?

    When the banks aren’t your best friends, it can feel as if you’re facing an uphill battle. But the battle isn’t lost – private mortgages are excellent alternatives for folks from all walks of life. It can be difficult to meet every specific requirement of a mainstream lender, so don’t feel bad if you can’t secure a preapproval from one. A private mortgage is exactly what it sounds like – the procurement of repayable funds from a smaller, private lender that has fewer clients. They can be useful when refinancing or renewing at the most competitive rate possible, typically consisting of shorter-term loans.

    Instead, private lenders tend to focus more on what you’re buying rather than merely what your credit score is, so an instant no is less likely. You won’t see any 20-year amortization periods here, but you also won’t endure any headaches – I’ll be there to help you make sense of everything, from meeting private lender preapproval requirements to ensuring terms and conditions are borrower-friendly.

    What is a Private Lender Mortgage?

    A private mortgage is the mortgage that is not lent by a bank or traditional lender. The mortgage usually comes from a business or an individual. If from a business, typically the business has a collection of funds that is lent for private mortgages. Private lenders typically focus on providing financing for the short term. There are three main types of private mortgages that private lenders offer. They are: Bridge loan A bridge loan is a short term loan that is typically needed when you have bought a new home before selling your existing home. Traditional bridge loan needs to have a firm sale and purchase agreement on the purchase and the sale. Without that traditional bridge loan is not possible. You can however explore a private mortgage for a bridge loan. These mortgages are typically interest only and you can pay them back once your existing property sells. These loans come at a higher interest rate however even with a traditional bank, the interest rate on a bridge loan is higher than the interest rate on a regular mortgage. This may not be as much of a concern however as you are borrowing the funds for a small amount of time. Sometimes even for just a few days. When deciding if you should go this route, you can weigh the pros and cons of having the bridge loan versus getting the closing dates to align if possible. Bad credit mortgage If you have bad credit from having debts in collections, failing to pay your financial obligations on time and so on, a bad credit mortgage may be the option for you. These type of mortgages can be used for the consolidation. Also, just to help provide some financial breathing room. Learn more: How to build your credit score Learn more: Traditional lenders and banks have minimum credit score requirements. If you do not meet these requirements, then if still wanting financing, bad credit lender can assist. These loans come with higher interest rates due to the increased risk to the lender. Second mortgage A second mortgage is a mortgage that goes into second position behind a current mortgage you have. Second mortgages are sought for a variety of reasons such as financing a vehicle or your kids tuition. Also, borrowing equity to invest or buying a rental property and so on.

    What Are The Benefits of a Private Mortgage?

    A private lender mortgage is it worth reviewing if you are flipping a house and only need money for the short term. Also, if you have bad credit and feel some additional funds will help you get on the right track. For example, improving your credit score and paying off higher interest rate debts first. Some other benefits include: Faster turnaround time: Second mortgages typically can be advanced in as little as 48 hours. When you cannot wait for a traditional lender review and approval, a private mortgage may be the way to go. Bad credit assistance: If your credit score is below traditional lending guidelines however you are still in need of money. A private mortgage may help you get through these times. A unique loan: Your reason for your financing may be quite specialized. With that, it may not be within a lender’s guidelines. Private mortgages can to help with the outside of the box lending. For example, it may be hard to secure a loan against an expensive personal item however you could get a private mortgage to finance the item.

    What Are The Risks?

    Although there are some possible benefits to private mortgages, there are also potential risks with these mortgages. Some rest can be: Higher interest rate. Typically private mortgages come with higher interest rates as well as the lender fees. Shorter terms: As these mortgages are sometimes with one year terms, you may need to re-qualify at the end of the year or pay another lender fee. Less ability to pay the mortgage off faster: If you are borrowing the money for a one year term, for example, if you have the ability to pay it off sooner some lenders do not have the option. Or, they would charge a penalty to do so.

    How I Can Help

    I’m lucky to have helped thousands of homeowners secure their ideal mortgage at terms and conditions that benefit them in the long run. I’m happy to extend the same courtesy to you. Whether you need a six-month or three-year private mortgage term, my mind and expertise are razor-sharp and able to cut through any complications. You’ll benefit from a hassle-free experience that is more comfortable and straightforward – I’m here to shoulder the stress and do all the behind-the-scenes work.

    Putting You First Every Time

    Whether you’re uncertain which private lender to trust or how to apply for a private mortgage, my aim is to eliminate guesswork and take care of these details on your behalf. The priority will always remain that you secure competitive rates, sensible agreements, and receive preapproval from a lender you can trust. This is the collective foundation of a stress-free private mortgage, and I’m excited to start digging it for you.

    Who Benefits Most from a Private Mortgage Lender in Canada?

    Recently Landed Immigrants

    If you’ve been in Canada for less than three years, are employed with a full-time job, there may be options for you via the New to Canada mortgage program even without established credit. Explore the eligibility criteria and find more information about it in my blog on the subject.

    Otherwise, those who do not fall under the New to Canada program’s guidelines may have a harder time securing approval for a mortgage, which is then when private mortgage lenders may come in handy. That said, some private mortgage lenders are sympathetic to these circumstances and may make exceptions. There could potentially be downsides, for instance, such as a higher required down-payment amount, so be sure to work with a mortgage broker who can walk you through all the terms and conditions and find an ideal private lending option.

    Self-Employed Individuals or Those with Changing Incomes

    Most financial institutions require two years of proven, relatively consistent income, but if you don’t hit the mark in terms of regular earnings, a private lender may be a better option. For example, if you’ve been self-employed for two years but don’t have a regularly strong income, then I’d recommend looking into private mortgage lender options. This may the case if you run your own business, freelance and work on a contractual basis, or otherwise. If your income changes regularly, or should you be your own boss, private lenders can sometimes effectively come to the rescue, whereas bigger banks otherwise must adhere to their requirements.

    Individuals Earning Income in Another Country

    Should you have a source of a foreign income, again, you aren’t earning within Canada. Some lenders may have solutions available to you, but there could be conditions including potentially higher down-payments (upwards of 35 percent in some cases). If you don’t meet the criteria with a traditional lender, then a private one may be able to accommodate for foreign income or allow for a smaller down-payment, helping to ensure you don’t miss out on your dreams of homeownership.

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    Getting a mortgage doesn’t need to be a source of stress and anxiety. Connect with me to learn how I can make your mortgage a comfy one.
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    Regardless of your financial situation or unique circumstances, I want to help you find the right private mortgage for your needs. Let’s get to know one another and plan your homeowning journey together.