A Thoughtful Guide for people seeking a private mortgage loan in Canada

Finance Loans

Financial management has become one of the life skills of the 21st century. Yet, it is a skill that is elusive for many individuals dealing with poor credit scores and other financially distressing situations.

For those individuals who are at a disadvantage for seeking loans from traditional institutional lenders, private loans become an alternative financial solution.

In Canada, firms like North East refinance home mortgage provide customized financial solutions which include securing private loans for their clients.

This article takes you through the issues around private loans and how to go about them with professional help.

Let us begin!

Why private mortgage?

A private mortgage is an unconventional method of securing mortgage financing.

It is resorted to in some of the following cases:

  • When banks refuse to renew the mortgage
  • When banks deny debt consolidation
  • Spousal buyout in a divorce proceeding
  • Removal of co-signer from the property deed
  • Bad credit rating
  • Receipt of 60-day foreclosure notice

Benefits of private mortgage

As getting a loan from traditional lenders is difficult, private mortgage comes to the rescue of distressed borrowers.

The main benefits are

  • Meets the urgent loan needs in a distress situation.
  • The borrower can obtain a loan quickly.
  • The credit extended is not shown on credit bureau listings
  • A private mortgage loan is based on your property’s equity and not on your credit score.

These advantages make private mortgages desirable. However, borrowers find it complex to find the right lenders and negotiate favorable terms of credit by themselves. They seek professional help in financial management.

How can a mortgage broker help you?

Mortgage broking firms specialize in the domain of real estate and mortgage financing. Due to their wide networks among creditors, they become well-placed to help distressed borrowers get private loans.

Ways in which a mortgage broker can help you

  • A mortgage broker can secure the best possible terms of credit from the available options of finance.
  • The borrower can avail of special waivers offered by lenders when approached through the mortgage broker.
  • A mortgage broker helps you understand the nuances in the terms of credit to eliminate any future liabilities hidden in the contract.
  • An experienced broker can also help distressed borrowers rebuild their credit scores.
  • There is a higher chance of improving your credit score to requalify for a bank loan.

Concluding thoughts

Securing private mortgage financing on favorable terms to the distressed borrower required financial acumen. Choose a professional mortgage firm to help you secure private financing in a hassle-free manner.