Banks, credit unions, monolines
Lowest rates. Strict rules on income, credit and debt levels.
Private & alternative lending
When the bank says no,
there's still a plan.
Alternative and private mortgages solve short-term problems. Used with a clear exit, they're a bridge back to a mainstream lender, not a place to stay.
Private lending, honestly
- Typical termShort, often one year
- CostHigher rates and fees than a bank
- Based onEquity in the property, more than income
- Always includesA written plan to exit
Mortgage Assurance Inc. · FSRA #13812
Three kinds of lender
I start at the top and only move down when it serves you.
Alternative lenders
Trust companies and others with flexible rules for self-employed income or bruised credit, at somewhat higher rates.
Private lenders
Individuals and mortgage investment corporations. Fast and flexible, based mainly on equity. Highest cost, shortest term.
When a private mortgage makes sense
Specific problems with a clear way out.
You need to close fast
A purchase or refinance with a deadline that a bank can't meet.
Credit needs repair
Consolidating arrears or high-interest debt while you rebuild your credit for a year.
Bridge or construction
Funds between buying and selling, or to finish a renovation or build.
Income in transition
A new business, a career change or a gap that mainstream lenders won't look past yet.
Stopping a power of sale
Paying out arrears to keep your home while a longer-term solution is arranged.
Unusual property
Rural, mixed-use or unique properties that standard lenders decline.
What you should know
The costs, stated plainly.
Private mortgages cost more than bank mortgages. Rates are higher, and there are usually lender and brokerage fees plus legal costs for both sides. Payments are often interest-only.
That can still be the right decision when it protects your home, saves a purchase or clears debt that costs even more. I show you the full cost in dollars and the plan to move to a cheaper lender before you sign anything.
- Every fee disclosed in writing before you commit
- A clear comparison with any cheaper option available
- A written exit plan and target date
- A check-in well before the term ends
Questions
Private lending questions, answered.
Is a private mortgage safe?
It's a legal, registered mortgage like any other. The risk is cost and a short term, which is why the exit plan matters as much as the approval.
How fast can it be arranged?
Much faster than a bank in many cases, once the appraisal and legal work are done. Timing depends on the property and the lender.
How much can I borrow?
It depends mainly on the equity in the property and its location. Private lenders set their own limits, and I tell you what's realistic before you spend money on an appraisal.
How do I get back to a regular lender?
By fixing the reason you needed private money: credit, income documentation or time. We set that plan on day one and I review it with you before the term ends.
Let's talk it through
In a tight spot? Call before it gets tighter.
Tell me what's happening. The conversation is confidential and there's no obligation.