Whether you’re new to canada or self-employed there is always a mortgage solution for you. Even if you’ve had past credit problems, you can still qualify for a mortgage. You just need to speak to a mortgage specialist. Sometimes banks aren’t always the easiest route, especially with all of the new mortgage rules in 2017. This is the main reason why private and alternative mortgages are rising in popularity amongst buyers.
Understanding Private Mortgage Financing
Financing a private mortgage is a great financial alternative for:
-
Self-employed individuals
-
Those looking to buy micro-condos (smaller than 600 square feet)
-
Foreign investors
-
Canadian Non-residents
-
Those with challenged credit
-
Persons owing back taxes to the CRA (Canada Revenue Agency)
-
Individuals owing arrears for property tax
-
Those under foreclosure
-
Construction or commercial loan borrowers
-
Business professionals looking to start a business using equity takeouts
It’s important to keep in mind that banks do not specialize in private financing. However, mortgage brokers have access to a variety of lenders who do.
Private Mortgage Rates/Fees
If you’re looking to buy a valuable and marketable property (higher risk) then you should know that you can get approved for financing with a 15 to 20 percent down payment. Mortgage rates can vary depending on whether or not you’re buying your first, second, or third property. However, you do have the option to opt-in to “interest only” payments. Another upside is that it can be open loan with no penalty risks for you, should you decide to break the mortgage early.
Like any other mortgage, even private mortgages come with certain fees. This also happens to be how your mortgage broker gets paid. It could be as little as $500 or up to 5 percent of your borrowing amount, but it really depends on the broker you hire.
Plan Your Exit Strategy with Your Broker
For short-term private financing, here at AKAL Mortgages, we always make sure that our client have an exit strategy in place, just in case you have to move to a traditional lower-rate mortgage. We’ll work with you every step of the way to protect your best interests from every angle.
Private mortgage are certainly more flexible when it comes to getting approved for the best mortgage rate, especially since traditional mortgages tend to be more strict on their qualifying rules. Hiring a mortgage expert with extensive experience in private financing options and lender can be just what you need.
Rate, fees and financing can vary by private lender. Contact your mortgage specialist at AKAL Mortgages to learn more about our mortgage solutions.
When we say Yes! We stand behind our promise.