You Opt for a Private Mortgage in Oshawa?

If you have been turned down for a traditional mortgage, you may be wondering whether or not you should opt for a private mortgage in Oshawa. There are pros and cons to be sure, but in this article we are going to discuss some of those in order to help you decide whether getting a private mortgage is the right choice for you.

What is a private mortgage?

Very simply, a private mortgage is a mortgage that is offered by a private lender rather than by a traditional lender such as a bank. Private mortgages are usually offered by investors who are looking to earn a profit on the interest that you pay on your mortgage, but they can also be offered by friends or family members who are trying to help you out.

Advantages of private mortgages in Oshawa

Private mortgages have several advantages. For starters, they tend to be easier to get than traditional mortgages, so if your dream is to become a homeowner, then a private mortgage can help make that dream come true.

Private mortgages can also help you rebuild your credit. When your credit has been damaged, it can be difficult to get a loan – but without a loan, it is difficult to rebuild your credit since you are not demonstrating that you can make loan payments. When you get a private mortgage – and make the payments in full and on time – you will begin to repair your credit.

Finally, private mortgages are good options for unique situations. If you are self-employed, new to Canada, or if you want to purchase an unconventional property, then getting a traditional mortgage may not be an option for you. But a private mortgage can help you buy the property you want.

Disadvantages of private mortgages in Oshawa

Despite their advantages, there are still some drawbacks about private mortgages that you should be aware of before you apply for one.

The first drawback is that when they are offered by investors, they usually come at a higher interest rate than traditional mortgages. The increase in price however may be worth it to you if it helps you get into a home of your own – but you need to decide whether it is.

If the private mortgage is offered by a friend or family member, it may have a very reasonable interest rate, but you still need to consider how owing a large amount of money to that personal will affect your relationship with them – especially if you become unable to pay in the future.

Contact 1Onefund Financial today

If you think that a private mortgage in Oshawa might be the right choice for you, contact us today. One of our professional mortgage agents will work with you to help you make the best possible choice for your situation.