When Does a Private Mortgage Help Canadians?

In Canada, most people think of big banks when they need a mortgage. Banks are trusted and reliable. But sometimes, a private mortgage is a better choice. Private lenders like Seven Lending can help when the banks can’t.

This guide will explain when a private mortgage is the right option. It will show how private lenders offer more help for specific needs.

What is a Private Mortgage?

A private mortgage is a loan that is backed by a property. It is offered by people or companies, like Seven Lending. Private mortgages are different from bank loans. They have fewer rules and are more flexible.

Why Choose a Private Mortgage?

More Flexibility: Private lenders can offer loans with different terms.

Fast Approval: Private mortgages are processed quickly.

Help for High-Risk Borrowers: If you have irregular income or poor credit, private lenders can still help.

When Should You Consider a Private Mortgage?

Private mortgages are not for everyone. But they can be the right choice in certain situations. Here are some common reasons why you might need one.

1. Self-Employed Income

It can be hard for self-employed people to get a mortgage from a bank. Banks want proof of regular income, which can be hard for freelancers or small business owners to show.

Why Private Mortgages Work:

Flexible Income Proof: Private lenders accept bank statements or other documents to show income.

Tailored Solutions: They create a plan that works for you.

Benefits for Self-Employed People:

Fast Process: Private lenders can approve your loan quickly.

Less Paperwork: There is less paperwork for self-employed borrowers.

2. Poor Credit History

If your credit is not great, getting a mortgage can be tough. Banks often won’t approve loans if your credit score is low.

How Private Mortgages Can Help:

Easier Approval: Private lenders focus more on the property’s value than your credit score.

Chance to Improve Credit: Making regular payments can help you rebuild your credit.

Why Private Mortgages Help with Bad Credit:

More Chances to Be Approved: Private lenders often approve people with poor credit.

Credit Repair: A private mortgage can help you fix your credit over time.

3. Need to Close Quickly

If you need to buy a property fast, banks can be slow. They may take weeks or even months to approve your mortgage.

Why Private Mortgages Are Fast:

Quick Approval: Private lenders can approve loans in days.

Flexible Closing Dates: They can adjust the closing date to fit your needs.

Benefits of Fast Closures:

No Long Wait: You won’t have to wait for weeks to get your loan.

Flexible Timelines: Private lenders offer a closing date that works for you.

4. Unique Properties

Some properties are not easy to get loans for, like rural homes or fixer-uppers. Banks often won’t approve loans for these types of properties.

How Private Mortgages Can Help:

Flexible Valuation: Private lenders will look at the potential of the property, not just its value.

Creative Solutions: They can help with properties that have zoning or repair issues.

Benefits for Unique Properties:

Lending Based on Potential: Private lenders look at what the property could become.

Faster Approval: Private lenders are more flexible with unique properties.

5. Debt Consolidation

If you have several loans or debts, a private mortgage can help you combine them into one. This makes it easier to manage your payments.

Why a Private Mortgage Can Help:

Combine Loans: A private mortgage can combine your debt into one payment.

Better Terms: Private mortgages can offer better terms than your current loans.

Benefits of Debt Consolidation:

Lower Interest: Consolidating your debt may reduce your interest payments.

Simpler Payments: Having one payment is easier to manage.

When Should You Choose a Private Mortgage?

Private mortgages are flexible and fast. They can be a good option if you are self-employed, have bad credit, need to close quickly, or are buying a unique property. Private lenders like Seven Lending can help when traditional banks cannot.