{"id":1764,"date":"2023-06-06T20:42:17","date_gmt":"2023-06-06T20:42:17","guid":{"rendered":"https:\/\/myprivatelender.com\/?p=1764"},"modified":"2023-09-06T17:00:46","modified_gmt":"2023-09-06T17:00:46","slug":"private-mortgage-lenders","status":"publish","type":"post","link":"https:\/\/myprivatelender.com\/2023\/06\/06\/private-mortgage-lenders\/","title":{"rendered":"Private Mortgage Lenders in Canada Part 1"},"content":{"rendered":"\n

Mortgage knowledge is priceless!<\/strong><\/h3>\n\n\n\n

Are you looking for a mortgage but have issues qualifying with a traditional lender? Are you just looking for an alternative lender to the banks? That is what private mortgage lenders, also known as non-bank lenders, are for. They provide an alternative to the banks to help you get into a home and finance a mortgage. Private mortgages are a type of B lender, meaning they fall under different regulations than traditional banks. Many lenders are not available to the public, only to licensed mortgage brokers. Many types of lenders out there to choose from; a private lender is just one of the many.<\/p>\n\n\n\n

What is a Private Mortgage Lender?<\/strong><\/mark><\/h3>\n\n\n\n

A private mortgage lender is an individual or institution that isn’t a bank. They see financing a mortgage as an investment and are more likely to finance those with lower credit scores or poor financial history. Private lenders are also more likely to finance loans for unique types of housing, have a source of income that isn’t traditional, or are only purchasing for the short term.<\/p>\n\n\n\n

Types of Private Mortgage Lenders in Canada<\/mark><\/strong><\/h3>\n\n\n\n

Because, in Canada, private mortgage lenders differ from the banks, their loan terms are often shorter than the banks. While a traditional financial institution will finance a loan from 3 years to 5 years for a mortgage term, private lenders tend to finance anywhere from 6 months to 3 years. However, these short-term loans can come with higher interest rates, depending on your financial situation. The good news is, though, if you have a high interest rate through a private lender, these payments are not reported to the credit bureaus. This will help with your credit score, increasing your chances of getting a lower interest rate when you renew.<\/p>\n\n\n\n

Essentially there are three different types of private mortgage lenders. While there are certain rules all lenders have to follow when giving money for a mortgage, lenders that aren’t federally regulated have a bit more flexibility than that traditional lenders.<\/p>\n\n\n\n