Private mortgages are not always a last resort.
Most people tend to think of private financing as a last resort alternative, however privately funded mortgages gained much attention after federal government changes in mortgage regulations have made it more difficult for many people to obtain a mortgage through an institution (traditional financing).
Sometimes your profile as a borrow just isn’t strong enough to match with the traditional lenders criteria. When this is the case we turn to private lenders.
Concerns about the risk of obtaining privately funded mortgages are common, but all the private lenders that I use and trust are licensed professionals with a great deal of experience in the financial industry.
Maybe you just want a short term easy loan so you can buy and flip a house and have the money down but your numbers don’t work traditionally, private lenders are great for this!
In short, privately funded mortgages are usually short term investments that can be sold off within 1-2 years, while the borrower gains equity, builds a better job history, builds up their credit to a better score, or many other reasons. If you’re looking into a private mortgage, make sure to talk to your trusted Langley Surrey mortgage broker.