Private mortgages can help when institutional lenders like banks are unable or unwilling to lend money. They offer an alternative source of financing to the unsuccessful borrower and a high yielding investment opportunity for the investor. Traditional lending institutions tend to have structured lending guidelines. When a deal is unique or doesn't fit their rigid lending criteria a private mortgage can be an excellent option to the borrower. Investors can usually yield a greater return on their investment in a private mortgage transaction because of the increased risk. In many cases, a private mortgage can give the buyer an opportunity to demonstrate a positive repayment history and in many cases after a few years allow the buyer to replace the existing private mortgage with a conventional loan with a more favourable mortgage rate.
Instances when one of our private mortgage lenders can help: