Private mortgages are a common borrowing option for people who require instant money and can't wait to undergo lengthy verification processes. However, there are some conditions and caveats that everyone should know before applying for one.

Let's explore some frequently asked questions about private mortgages below:

How Do Private Mortgages Differ From Conventional Mortgage Loans?

Private mortgages are similar to conventional mortgage loans. Both involve borrowing money from a lender in order to purchase a home. 

However, there are some key differences to keep in mind. Private mortgages are typically arranged through a mortgage broker and funded by investors. Conventional mortgages, on the other hand, are obtained through banks or other financial institutions. 

Private lending has more flexible terms than its traditional counterpart. This makes it a good alternative for borrowers who may not meet the strict eligibility requirements of banks.

What Are the Benefits of Private Mortgages?

Private mortgages offer several benefits over traditional mortgage loans. For one, they are typically easier to obtain. While conventional mortgage loans require you to meet specific eligibility requirements and provide extensive documentation, private mortgages require less paperwork. They may even allow the use of non-traditional income sources such as commissions and bonuses when determining your ability to repay a loan.

Furthermore, private mortgages tend to have more adjustable terms. This makes them a good option for borrowers who don't satisfy stringent credit requirements. These flexible terms can include a more extended repayment period or a lower down payment.

Additionally, private mortgage lenders provide quick funding, usually within a few days after the loan application is approved.

Are Private Mortgage Terms More Flexible?

Yes, private lenders typically offer more flexible repayment terms than conventional mortgages. 

For instance, private mortgage providers may be willing to factor in other revenue streams when determining your affordability. They make exceptions on a case-by-case basis instead of relying on a checkbox list of requirements that conventional financial institutions implement.

What Factors Should You Consider Before Applying for a Private Mortgage Loan?

Before applying for a private mortgage loan, it is essential to consider your financial situation carefully and determine whether you are likely to be approved in the first place. It is also important to be aware of the associated costs of private mortgages, such as broker fees and higher interest rates.

When reviewing the loan term, consider whether it’s appropriate for your situation and contains no hidden fees. Remember to comprehensively read the terms and conditions of any private mortgage loan to ensure that you are well-versed about the associated risks.

 Finally, research the market. This will give you a good sense of the value of properties in your area. Consulting with a mortgage broker will also help you find the best loan for your needs. They can help you compare mortgage rates and terms from various lenders, which can help you get a good deal on a private mortgage loan.

Looking to Obtain a Private Mortgage? Contact Us Today!

Whether you’re looking to save time or want a tailored financing agreement, there are various benefits to consulting with a private mortgage lender.

Working with homeowners throughout Southern Ontario, EasyMortgageLend.com is dedicated to helping those who can’t use a traditional lender. To learn more about how we work with lenders who offer these mortgages, call us now at (647) 895-3921 or book a consultation online .