A private mortgage is a loan that is issued by an individual or a private company rather than a financial institution. This type of mortgage can be a great option for those who are self-employed, have poor credit, or don’t meet the strict lending requirements of traditional lenders.
One of the biggest advantages of a private mortgage is the ability to negotiate terms that work for you. Since you are working directly with the lender, you have more control over the terms of the loan and can potentially get a more flexible repayment plan.
Private mortgages also tend to have a faster approval process than traditional mortgages. While you will still need to provide proof of income and a down payment, the lender may be more willing to work with you if you have a solid plan for repaying the loan. Lenders are more interested in the equity of the property as opposed to how much income the borrower makes.
If you’re considering a private mortgage, it’s important to do your research and find a reputable lender. Make sure to get everything in writing and fully understand the terms of the loan before you agree to anything.
Overall, a private mortgage can be a great option for those who don’t qualify for a traditional mortgage or want a more flexible repayment plan. Just be sure to do your due diligence and find a reputable lender to work with. LenderBidding only uses the most reputable Mortgage Investment Corporations and Licensed Lenders in Canada.