What are the benefits of getting a private mortgage?

For the majority of Canadians, getting a private mortgage is not their first choice. There are several benefits to getting a private mortgage which you may not have thought about. We will discuss these in this article.

What is a private mortgage? 

Let’s start by defining what a private mortgage is. A private mortgage is simply a mortgage that is held privately by an individual or private company rather than by a traditional financial institution. Oftentimes the lender is an investor who is granting the mortgage to make an income off the interest. In other cases, the lender may even be a friend or family member who is granting the mortgage to help out the homeowner. This person may still charge interest, but it is often much less.

So what are the benefits of getting a private mortgage? 

• You don’t need perfect credit – Perhaps the most common reason people apply for private mortgages is that their credit is not good enough to get a traditional mortgage. Getting a private mortgage allows you to become a homeowner sooner. As you pay down your mortgage, hopefully, you will also be improving your credit score so that you can eventually qualify for a more traditional mortgage.
• You want to get a mortgage quickly – because private mortgages are easier to qualify for, that means that you can get approved more quickly. If time is of the essence and you want to get an offer in on a home right away, then getting approved for a private mortgage might be your best bet.
• You want to get a mortgage with non-standard terms – Private lenders are often more willing to negotiate non-standard terms into their contracts. Maybe you only need a mortgage for a very short period, or perhaps you want more options for making extra payments on your mortgage. If you want something in the contract that a traditional lender is unwilling to do, then you might want to consider a private mortgage.
• You want to invest in a non-traditional property – Is your dream home tiny, a treehouse, or a mobile home? Generally speaking, traditional lenders will not offer mortgages on these kinds of properties. A private lender however just might.

Contact 1Onefund Financial 

Do you think that a private mortgage might be the right choice for you? If so, contact 1Onefund Financial today and let one of our expert brokers assist you.