Private mortgage loans are an excellent alternative for those looking for flexible terms and no penalty fees. Most banks are strict with loans and often have high penalties with little flexibility. That’s where a private mortgage comes in. Here at Mortgage Residence, we are pleased to connect our clients with private mortgage lenders who are willing to take on the majority of private loan requests. For the best personal loans in Toronto, you’ve come to the right place.

Private Loans Are Suitable for Those:

  • Looking to invest in a significant home renovation
  • In need of funds for a unique property
  • Experiencing debt problems
  • Need help refinancing your first mortgage
  • Who doesn’t have a steady income, preventing them from being granted a conventional mortgage

Private Mortgage Breakdown

We generally recommend private loans for those looking for a short-term solution. These are interest-only loans that often range from one to three years in length, and do not require a mortgage principal down payment from homeowners. Alternatively, the terms require monthly interest payments. For more specifics on our private mortgage rates, please contact us directly.

Private Loan Rates in Canada

Private mortgage rates tend to be high in comparison to those offered by traditional mortgage lenders. Private lenders tend to offer rates ranging from 10-18%. This percentage is, of course, dependent on factors such as property, borrower, and the current economy. Since these rates are much higher than those from a traditional lender, we suggest going through with a private lender mortgage only if all your other options have been ruled out.

FAQs about Private Mortgage

How does private mortgage work?

Private mortgages don’t have the same restrictions as traditional loans. We suggest this avenue for those looking for short-term loans in Ontario and have been rejected a mortgage from a conventional outlet. The basis of these loans involves connecting with a private lender who will agree to terms with you. There is no requirement to pay the mortgage principal down. Instead, monthly interest payments are the terms.

When is private mortgage insurance required?

A private lender will likely require you to pay for private mortgage insurance. Why? It is simply protection for the lender if you stop meeting the monthly payments. It is important to consider these payments and explore other options before committing to anything.

Why use a private lender?

Using a private lender shouldn’t be your first option, as rates tend to be significantly higher. We suggest a private lender for those who cannot obtain a mortgage from a traditional institution, those looking for funds to invest in a unique property, or those in need of a short-term loan.

Here at Mortgage Residence, we can connect you with top private lenders in Ontario. We want to make investing in a mortgage simple and accessible for everyone, which is why we specialize in private mortgages in Toronto. If your bank is giving you trouble in obtaining a mortgage, don’t panic! Give us a call, and we’ll guarantee to set you up with a loan that works for you.