Explore Canada's Largest Resource of Private Mortgage Lenders

What is a Private Mortgage?

A private mortgage is a short-term loan that uses your home as collateral. Generally the term on a private mortgage usually ranges from 1 to 3 years. Private mortgages can be a good option for homeowners. Especially, if you don’t qualify with conventional lenders.

To qualify for a mortgage loan with a big bank it can be difficult. In addition to looking at your credit score, major banks want to verify income and see quality real estate.  As a result, private mortgage lenders have become a necessity.

A private lender for a mortgage doesn’t care about poor credit scores. Generally speaking, they don’t even look at your income. Their primary concern is the amount of equity in your home. Traditional private lenders will typically lend up to 80 and in some cases 85% of a home’s value.

Private mortgages fill the void when institutional lenders won’t help. They are a very helpful and flexible option when you don’t qualify with your bank.

Types of Private Mortgage Lenders

There are 3 different types of private mortgage lenders in Canada:

• Private Individual: These types of mortgage lenders are individuals who have a surplus of private funds and invest in real estate. In exchange for their lending money they get a better return than they likely would if they just had their money sitting in a bank. Overall, they have to feel more comfortable investing in the housing market than the stock market.
• Mortgage Investment Corporations: Likewise, a mortgage investment company (MIC) is a group of individual investors who invest their money with a company. The company then uses this pool of investor money to fund mortgages on a case-by-case basis.
• Syndicated Mortgages: A mortgage syndicate is like a MIC. However, they fund large projects and can be involved in several projects at the same time. For example, they may be used to develop a pair of high-rise condos.

Most mortgage brokers have limited access to private lenders. Specifically, only niche mortgage brokers who focus on private lending do. This means that clients who don’t do their research, don’t get access to the best pricing and have limited products to choose from.

Advantages of a Private Mortgage

Ideally, most people choose big banks for their traditional mortgage needs. However, this isn’t always an option.  If you have bad credit or can’t prove your income, a traditional lender is out of the question.

This is where private mortgage lenders stand out. Private lenders don’t care about poor credit scores or income. Their primary concern is the equity in your home.

Another benefit includes quick turnaround times. Given that there is virtually no paperwork to review, private mortgages can be closed quickly.

Additionally, a private mortgage lender will often consider properties that many bank lenders would otherwise not finance. These types of properties include:

• Commercial Properties
• Vacant Land
• Rural Properties
• Construction Mortgages
• Pre-Fab Construction Homes
• Damaged Homes (water, fire & foundation issues)

Big banks tend to like “cookie-cutter” type homes and usually only lend on residential and commercial properties. In general, their focus is on nice properties in urban areas. In contrast, private lenders are more open to challenging property types and they offer a variety of solutions.

What Type of Private Mortgage Options are Available?

For the most part, there are a variety of private mortgage options available to homeowners. They are flexible and can be taken as a short-term mortgage to help get you back on track.  Some of these solutions include:

• High-Risk Mortgages
• Private 1^st Mortgage
• Bad Credit Commercial Mortgage
• Private Construction Financing
• Private 2^nd Mortgage
• Bad Credit Home Equity Loans
• Secured Renovation Loans
• Vacant Land Financing

Turnedaway.ca can help with private first mortgage financing and arrange your private second mortgage. We have created access to one of Canada’s largest pools of private mortgage investors and made it readily available to our clients.

Why Choose Turnedaway.ca for your Private Mortgage?

Turnedaway.ca has a seemingly endless pool of private investors. Our lenders offer competitive private mortgage lenders rates and are decisively quick. With our low mortgage rates, our private mortgage solutions are perfect, whether it’s for debt consolidation, foreclosure or to fee up cash flow.

We aim to pre-screen our private investors which shields our clients from predatory lenders ensuring that all parties benefit from the private mortgage financing.

If you’ve exhausted your efforts at your bank, TurnedAway.ca can help. We facilitate mortgages in every province, excluding Quebec. We have the best private mortgage lenders in Toronto and all other major cities. Our private lenders have virtually no limitations are able to arrange financing as small as $10,000.

Give Turnedaway.ca a call at 1-855-668-3074 to see if a private mortgage is right for you.  Or Apply Online and let us work on getting your approval today!