Is simply finding a private lending solution the answer?
More and more Canadians have sought mortgages from alternative lenders for various reasons. According to Statistics Canada, the value of non-bank mortgages increased more than 10 fold between 2007 and 2018 — growing to $86.7 billion in 2018 from $8.5 billion in 2007.
Private lenders, including mortgage investment corporations (MICs) and other private lenders, are not subject to the same rules as financial institutions or mortgage finance corporations.
And as a result, MICs have also seen double-digit growth annually on average for the past 10 years. Statistics Canada says the total financial assets of MICs reached $32.3 billion in 2020, up from $11.4 billion in 2008.
Reasons to use Private Lenders are many.
When a borrower needed money desperately, his circumstances were typical for needing a private lending solution (low income, low credit score, bills to pay, and a collections agency after him). The borrower seems to have relied heavily upon the lender to treat him fairly.
Private Lenders funding your mortgage have a lending fee, legal fees, interest rates, and sometimes even application fees. Some lenders want to get the most out of their investment, just like everybody would do investing in high-risk ventures.
Reasons you should borrow from Private.
- when banks are no option, due to credit
- pay off bad debt and become “bankable” once again
- borrow to invest, when benefit outrun cost
- fix credit and borrow cheap in the future
- renovate your home before sell, nice homes bring more bucks
- invest into stock market
- turn 29% credit card debt into 4% mortgage debt
- many other reasons to finance, refinance or access your home equity, get hold of us for guidance, help and request
Let us to analyze your situation and provide you valuable advice, no matter what your mortgage borrowing needs are. However, we urge you to consider private mortgages as a short term solution and not a permanent one. High interest rate mortgages usually interest only mortgages, your principal stays the original amount you borrowed forever. Call us today 403-253-2022 and save a lot of disappointment.