Private Mortgage Lending
Private mortgages are a great tool to fix short term financing problems such as poor credit, finalize a renovation, bridge a small gap in finances or for some business owners get over that small financial hurdle. At Simon’s Ultimate Mortgage, we help you through every step of the process. We also help you put a strategic plan in place to ensure you don’t get caught in the renewal trap a private lender is looking for you to fall into.
What is a Private Mortgage Loan?
This is a loan that is financed by a private source of funds either through an individual or Mortgage Investments Corporation (MIC). It requires very little documentation and is usually possible if you have equity in your home. A private mortgage loan can however become a burden without the right guidance. At Simon’s Ultimate mortgage, we believe that you should not need to be in a private mortgage for more than 12 months. Our expert and highly skilled agents can help if you:
- Are currently in a private mortgage looking to seek better terms.
- Have recently obtained a private mortgage and need strategic planning help.
- Need a private mortgage.
90% of our clients who have needed a private mortgage, were able to get out of the private mortgage within 6 months with the help of our trained agents. Give us a call today to get started.
When are Private Mortgage Lenders a Good Option?
Private mortgages are a great SHORT term tool built to help you get back to financial success and are great alternatives to regular financing in many situations. Here are some potential situations/circumstances where private lending is considered a good option:
- Unusual Properties: If you’re a business or individual looking for a mortgage for an unusual or unconventional property, private lenders may better understand your goals and be more willing to back you than a regular mortgage lender.
- Unverifiable Income: If your income is hard to verify, regular mortgage lenders may be unwilling to offer you a mortgage or require additional documentation that is not readily available. In these circumstances, private lenders can offer you an alternative. They may charge a higher interest to cover the risk, but it can still be a great short-term solution for you.
- Short Timelines: Those who are on short timelines and need to get a mortgage to secure their property right away are also good candidates for private mortgages. Private lenders move faster than banks and can get you the financing you need right away.
- Poor Credit: A Private mortgage can help with situations where poor credit prevents you from getting approved for a regular mortgage. It can help fix credit and help you qualify for a regular mortgage in the future.
Contact Simon's Ultimate Mortgage
The experts at Simon's Ultimate mortgage are ready to walk you through the entire process and ensure that you are equipped to secure a private mortgage and use it in the right way, i.e. as a short-term financing solution to help you achieve your long-term goals. Give us a call today.
Frequently Asked Questions
The minimum down payment is based on your purchase price. 5% for purchasing under $500,000, between $500,000 and $1,000,000 you need to put a minimum of 5% down on the first $500,000 and 10% on the additional amount up to $1M. Anything over $1M will require a minimum of 20% on the whole amount.
In addition to your down payment, you will want to budget a minimum of 1.5% for closing costs. Closing costs will consist of your land transfer tax and lawyer’s fees.