For a long time, the only way to get a mortgage on a house was through a traditional lender – usually one of the big banks. It’s become much more common, though, for people looking to buy a house to search for alternative lending solutions for their mortgages. One of the options more Canadians are looking at is private mortgages as they are often much more flexible than traditional mortgages. If you’re thinking about a private mortgage in Mississauga, here’s what you need to know.
What is a private mortgage?
When people usually think about mortgages, they think about big banks lending out money to buy a home. Today, though, there are individuals who can invest their own money into lending for mortgages – and this makes them private lenders. Due to these lenders not being associated with any bank, they can make their own terms and decide how they’re going to lend it out.
Why do you want to consider a private mortgage?
There could be a number of reasons a private mortgage in Mississauga is a great idea for you. If you have a poor credit history and you’re trying to rebuild your credit, a private lender can help you purchase a home and that will help you rebuild your credit. Additionally, private mortgages can work for short-term loans and purchasing unconventional properties.
Working with your mortgage broker, you can determine if a private mortgage is a right solution for you.
How to get a private mortgage?
The good news is that applying for a private mortgage is very similar to how traditional mortgages work. Mortgage brokers in Mississauga will have relationships with private lenders so that if you need to work with one, they can help you out.
Sometimes private lenders will have additional requirements they’re looking for – depending on their individual lending preferences – so your mortgage broker will be able to work through that to help you secure your financing.
As you’re working through the process of applying for a mortgage and buying your home, as your mortgage broker we will be there to help you with any questions. It can be frustrating when you’re trying to work with traditional lenders but you just don’t qualify – we completely understand that. Thankfully, we know of many other solutions that can help you achieve your goal of purchasing your own home.
Give us a call today to discuss your options and see how we can help you!