Private Mortgages
Private Mortgages or Alternative lending is a good option. That is when conventional lending is not feasible. With the recent mortgage rule changes, many home owners and potential mortgage borrowers no longer qualify for traditional bank. Or even “A” mortgage lending. If a borrower cannot get financing through a bank or a traditional “A” lender, then there are many other options to consider. Alternative or B lending could be beneficial for those with (a) Bruised credit (b) Self-employed borrowers (c) or a buyer/home owner looking for financing on a unique property.
Private Mortgage or Alternative lenders are still very reputable & large financial institutions. They usually charge a slightly higher interest rate and/or a lending fee. Private lending is recommended for short-term financing situations. Typically for a few weeks or a year when all other options are off the table. The interest rate and lender fees are typically much higher in this case.
Private Mortgage – Borrowing
In some cases where credit, income, or the property do not fit well with conventional lenders,. In which case lending can be a good options. Rates are typically higher than traditional lenders. That is because because the risk is higher to the lender. There are also fees to the broker as this is one of the few cases where the broker is not compensated for sourcing the business for the lender. Ideally, private mortgage financing is a short-term solution until the client is moved back to a conventional lender.
Private Mortgage – Lending
Mr Lakhvinder Gill also works with private lenders to facilitate private mortgage or alternative lending borrowing for his clients. My private lenders invest in individual mortgages, with the lender’s interest in the property registered directly on title. Each private lender is sent property and client details. They can make a decision on whether to invest on a file by file basis in keeping with each investor’s preferences
Speaking to a mortgage professional about alternative or private lending is a good way to start.
For all your Private Mortgages/ Alternative lending requirements – Contact top Mortgage broker in Surrey BC – Mr. Lakhvinder Gill or call on (604) 725-6734
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