{"id":1789,"date":"2023-07-13T19:14:18","date_gmt":"2023-07-13T19:14:18","guid":{"rendered":"https:\/\/myprivatelender.com\/?p=1789"},"modified":"2023-07-13T19:14:23","modified_gmt":"2023-07-13T19:14:23","slug":"private-mortgage-lenders-canada-the-easy-way-to-get-a-mortgage","status":"publish","type":"post","link":"https:\/\/myprivatelender.com\/2023\/07\/13\/private-mortgage-lenders-canada-the-easy-way-to-get-a-mortgage\/","title":{"rendered":"Private Mortgage Lenders in Canada Part 2"},"content":{"rendered":"\n

Reasons for Using a Private Lender<\/h2>\n\n\n\n

While using a private mortgage can be a bit scarier than using a traditional lender like a bank or credit union, there can be reasons you are advancing to alternative lenders territory, like private lenders. Here are a few reasons why you may choose to or can only get a loan with a private lender.<\/p>\n\n\n\n

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  1. Don’t have time to wait for a traditional mortgage loan approval.<\/li>\n\n\n\n
  2. Have a poor credit score<\/li>\n\n\n\n
  3. Need money for home repairs or other emergencies (home equity)<\/li>\n\n\n\n
  4. Buying a property that is considered non-traditional by a bank or credit union<\/li>\n\n\n\n
  5. Debt consolidation<\/li>\n\n\n\n
  6. Stop a power of sale or even a foreclosure<\/li>\n<\/ol>\n\n\n\n

    Because most private mortgage lenders only do short-term situations, these are ideal if you need money fast, just until you can secure a traditional mortgage. Other private lenders will factor principal payments in, but it just depends on which of the many private money lenders you use. Some private lenders will even finance a longer term.<\/p>\n\n\n\n

    That being said, though, just because they make you an offer, that doesn’t mean that you need to accept it. Ultimately, you need to select the offer that makes the most sense to you. This is different for everyone. Before you agree, though, verify that you are able to comfortably make your payments and select a term that makes the most sense to you. Depending on the mortgage loan that you go with, you may be able to refinance early with little to no penalty. Many private lenders, even though they have higher interest rates, are more likely to go with an open-term loan over a closed-term loan. Make sure you understand which is which. <\/p>\n\n\n\n

    Private Lender Fees<\/h2>\n\n\n\n

    Also, consider this with a private mortgage lender, is the fees. There are usually more than going through the traditional mortgage rate. Some private lending fees you should be expecting are:<\/p>\n\n\n\n