Are you a prospective homeowner looking to obtain a qualified mortgage outside the Canadian bank? You may consider hiring an Ontario private lender to assist you in financing your next property.

What is a Private Mortgage?

There are many reasons as to why a home-buyer may acquire the support of a private lender to purchase property. Those who are denied financial support from banks or are unable to qualify for low-interest rates voluntary seek this form of assistance. From financing home renovations to paying off long-standing credit card debt, the added stability helps individuals tend to current financial hardships.

As a real estate investor, private lenders assist in providing you with monetary potential in the form of a registered loan. They are effective in analyzing market value and determining whether a property has long-term potential or uncertain debt. Metrics such as Loan to Value (LTV) ratio, are used to help private lenders determine the profit value of a property investment for either the lender or homeowner. Secured under the Ontario Mortgage Act, professional lenders are able to offer these advancements regardless of your current credit standing. This becomes a service of relief to homeowners with lower credit ratings. The option to apply for a private mortgage, is often accompanied by higher interest rates, however, there are ways to lower this based on your ownership criteria.

How do you Mitigate Risks?

Applying for a private mortgage removes the protection and support from a bank and requires you to seek strategies to mitigate associated risks. Seeking legal counsel is integral to understanding all aspects of private lending and to also ensure your rights as a buyer are protected. Homeowners who seek guidance from a qualified real estate lawyer are more likely to mitigate risks associated with private mortgages.

At Brar Law, we specialize in supporting prospective homebuyers in acquiring the financial assistance they need. We have experience working with mortgage brokers, real estate firms and government regulated bodies, and apply comprehensive knowledge of the Ontario Mortgage Act.

Based on your competitors, we identified the need for clients looking to obtain private mortgages and the importance of hiring legal counsel.