What is a Private Mortgage?
Private mortgages provide an alternative source of financing for borrowers who may not qualify for traditional bank loans or who require more flexibility in their borrowing arrangements. Private mortgage lenders are typically individual investors, a group of investors, or a private lending company rather than a traditional financial institution like a bank or credit union. Private lenders view mortgages as investments, which often translates to a more lenient approach towards credit checks and background assessments. Securing a private mortgage is often quicker and less complex than qualifying for a traditional mortgage loan. Just keep in mind that those advantages are accompanied by increased interest rates, fees and possibly greater risk.
Opting for a private mortgage could be a viable choice if you are purchasing an unconventional type of property, do not plan on holding onto the property for an extended period, or have an alternative source of income.
The interest rates offered by private mortgage lenders are generally higher compared to those offered by traditional lenders and have shorter terms, usually ranging from six months to three years. This is mainly due to the fact that private mortgage are interest-only payments. In an interest only mortgage setup, none of your payment contributes toward reducing the principal amount owed, unlike in a standard mortgage where the total amount decreases over time.
What is a Private Mortgage?
Despite the negative reputation, private lenders can be a great option if the mortgage you are approved for fits your needs. Below are some examples where private mortgage lending can be useful:
You urgently need a mortgage approved.
You have very poor credit and traditional lenders, including sub-prime lenders, will not approve you.
You have income that cannot be verified, such as cash jobs.
You have down payment that traditional lenders cannot verify.
You need a short-term loan because you plan on selling your home as soon as possible.
Traditional lenders are not approving you because of your property.
Private Mortgage Pros and Cons
Pros of a Private Mortgage
Very fast approval
Minimal documentation needed
Access to flexible terms not provided by traditional lenders
Cons of a Private Mortgage
High interest rates
Additional fees charged for setup and commissions
Short term, interest-only payment loans
Your mortgage matters more than
you might think.
Hi, I’m Gurnik Singh, your mortgage consultant. I understand the stress of finding the right mortgage. It sometimes feels like you’re looking for a needle in a haystack.
Wanting to help homeowners navigate these complexities is what ultimately led me to a career in Real Estate Finance. My passion for understanding each person’s unique needs and tailoring the perfect mortgage to fit their life is what drives me. We offer more than just a mortgage; we provide the necessary tools and knowledge to ensure you supported throughout the financial life of your mortgage.
Ready to streamline your mortgage experience?
Benefits You Can Expect
Guidance
We’ve streamlined the entire mortgage process, making your mortgage experience simple & stress-free!
Access
With access to over 50 lenders, leave it to us to shop the best mortgage for your needs!
Transparency
We make transparency a priority, ensuring you’re well-informed throughout the mortgage process!
Testimonial
Don't Just Take my Word For It
Dan Rogers
“Invaluable Expertise”
“Gurnik’s services exceeded all expectations. He seamlessly guided me through the intricacies of a mortgage offering invaluable expertise and recommendations.”
Kiera Stephenson
“Diligent and Responsive”
“I worked with Gurnik and he did a fantastic job. He was diligent and responsive which was needed for all my questions as a first time home buyer. Would recommend and thank you again!”
Abdi Reed
“Seamless Process”
“Just secured a mortgage with the help of Gurnik. He made the entire process seamless and worked around my busy schedule to keep me informed throughout the process.”
How It Works
Step 1
Schedule a Call
Scheduling a call with us makes getting to know you and understanding your needs seamless and convenient.
Step 2
Target & Approve
We will hunt down the best mortgage solutions for you and breakdown the options. Then, we will work on approving your mortgage.
Step 3
Close
Our relationship doesn’t end once you sign on the dotted. We’re here to support you for the lifetime of your mortgage.
Here’s What You’ll Get
Knowledgeable Guidance
Stress-free Experience
Competitive Rates
Mortgage Flexibility
Long-Term Strategic Relationship
Mortgage Education
Personalized Service
Fast Approvals
Ready To Get Started?
