Under Canada’s new ‘stress test’ mortgage rules (implemented January 1st, 2018), many homebuyers may no longer qualify for a traditional mortgage. Fortunately, with the help of MortgagesMadeEasy.com, you still have options to help you get the property of your dreams, through alternative lenders or a private mortgage.
What is a private mortgage?
Compared to more conventional mortgage types, private mortgages are a unique financing option for the thousands of mortgage applications that do not fall within the banks’ parameters. Private mortgages are typically short-term (1–3 years), interest-only loans, secured through an individual investor or institution—instead of through a bank or chartered financial institution. This means you get fast financing, skipping the red tape and lengthy approval process of big banks.
More importantly, private mortgage approval is based on the property’s value, not on your credit score or income. That makes private mortgages a viable option for people with a below average credit rating, little down payment, or those who can’t provide traditional proof of income.
Why use a private mortgage?
A private mortgage may be right for you if you are in any of the following situations:
- You’ve had trouble getting approved by a bank or traditional lender because of:
- Bruised credit history
- Un-confirmable income (self-employed, contract, etc.)
- Little down payment
- Too many properties in your portfolio
- You’re looking to buy an unconventional property such as a farm, garage, or multi-unit commercial property.
- You can’t wait for the banks’ approval process and need fast financing.
- You are looking to take out a second mortgage.
- You prefer a short-term loan.
- You are looking to resell or build.
If you were turned down by the banks for any of the above-mentioned reasons, a private mortgage may be the answer.
Securing a private mortgage through MortgagesMadeEasy.com
Your MortgagesMadeEasy.com broker can help you decide if a private mortgage is right for you and your situation. Moreover, you’ll save time and hassle searching elsewhere for a private lender with access to our large, ‘in-house’, private mortgage fund. Our team of experts connects you to the best lenders, lowest rates, and quick approvals.
We have experience processing hundreds of unique private mortgages on both 1st and 2nd residential and commercial properties, such as:
- Almost any type of property: farms, restaurants, garages, vacant land, rentals, commercial, condominiums, and multi-units
- Construction mortgages (both residential and commercial)
- Interim financing
- Tax arrears (personal or property), recent bankruptcy, or foreclosures
- Credit proposals or refinance for debt consolidation
Worried about qualifying under the new mortgage rules? You can rest easy knowing we are available to answer all your questions, and can quickly get quotes for your deal with our ‘in-house’ fund.
If you have questions about private mortgages, the new rules, or want to discuss your options, contact your MortgagesMadeEasy.com broker today. Call 613-563-3447 or use our contact form.
