Private Mortgage  Brokers Toronto

A private mortgage is a loan given solely by a private lender or group of private investors instead of traditional A or B lenders.

A private mortgage is typically short-term, where the focus should be to remain in a private mortgage for 1 year or less. Borrowers are often only required to pay interest on the loan to lenders without any funds directed to the mortgage’s principal balance. Private mortgage lending is considered niche and may not work for every borrower, but it can provide a solution for those who cannot qualify for a traditional mortgage.

Private mortgages are specialized financial solutions only given to borrowers based on specific criteria. They are often sought out by those who don’t qualify for a traditional A or B mortgage based on the conservative criteria set of credit score, income and debt servicing capabilities. Private mortgage lenders will typically look past traditional criteria and take into account specific factors, including the home’s overall value and marketability. When traditional A or B mortgage lending is not available, a private mortgage is generally the only remaining solution – which is why it is a more expensive and short-term option.

The process for applying for private mortgage lending is similar to its traditional counterpart. Borrowers are expected to fill out their applications and present identification and relevant documents pertaining to their income, property type, equity, and down payment. Your mortgage broker will evaluate your application and ensure everything is in order before connecting you with a private lender that can offer you the loan and rate you deserve.

Private mortgages can help a wide range of borrowers but are often sought out when dealing with:

Low/Bad Credit

Securing a mortgage when your credit is below average can be challenging through a traditional mortgage lender. Private mortgage lenders typically offer more flexibility and are willing to provide borrowers struggling with their credit with a mortgage solution. The best plan is to use the private mortgage to help pay down debt and improve credit to go back to a lower cost lender.

Self-Employment

Working as an entrepreneur or contract worker has many benefits, but getting approved for a traditional mortgage can also be difficult. Working with a private mortgage broker can help you present your case to a private lender that will use additional criteria — such as your property’s value — to approve you for a mortgage.

Fast Financing

Sometimes, things that are out of your control happen, and you need a short-term loan to get back on your feet. A private mortgage lender in Toronto can help you secure funds in a shorter time period with flexible terms. This includes closing a purchase or refinance with a fast private mortgage.

Specialized Properties

If you’re looking to purchase a property outside the conventional parameters, such as a mobile home, hobby farm, or vacant land, you may encounter obstacles with traditional lenders. A private mortgage lender will look at various criteria outside your sole income and help you get financed for a property that a traditional lender likely won’t sign off on.

Low or No Income

In some scenarios, you may not have enough income to service the debt for a mortgage. You may be between jobs or on probation with a new job. Private mortgages offer flexibility with prepaid interest (also known as an interest reserve or interest hold back) where monthly payments are not required, and are deducted from the initial advance. This generally only works on loans where there is a large amount of equity available in the property.

Both private and bank mortgages can help borrowers reach their financial goals, but there are important differences to consider before determining which solution is right for you.

Private mortgages are home loans given to borrowers by a private lender or group of investors. This type of loan is more expensive and should typically be used as a short-term solution. Borrowers approved for a private mortgage are generally required to pay interest on the loan, with no repayment going toward the principal balance. Some private lenders do offer amortized payment, but we generally don’t recommend this.

Bank mortgages are given by exactly that — a bank. Banks are considered traditional lenders and offer both fixed and variable mortgages — fixed rates and payments are locked for the entirety of the mortgage term, while variable rates change with the Bank of Canada prime interest rate. . Bank lenders often require specific criteria to be approved for home mortgages, and it can be challenging to secure a mortgage with poor credit or if you’re self-employed.

Private lending is an alternative financial solution that offers greater flexibility and convenience to borrowers looking for a non-traditional mortgage. This type of loan is often short-term and can be approved within a faster turnaround than a traditional bank or credit union.

B lenders are another alternative financing source. They tend to offer higher interest rates than A lenders, though they are often lower than private lenders. B lenders are sometimes less risky due to their quasi-regulations and tend to have stricter lending guidelines than private mortgage lenders. In many cases an open private mortgage can be cheaper than a B mortgage loan because B lenders fees are never less than 1% and for open mortgages, their rates are typically close to those of private lenders, so if you needed a 1-2 month loan or a bridge loan, it sometimes is most cost effective to gte this from a private lender.

Private mortgages come with several benefits, from their rapid approval processes to their consolidation efforts. But it’s important to understand the costs involved in private mortgage lending. Lending fees often depend on the borrower’s qualifications or the risk factor involved in the specific mortgage. The riskier the loan, the higher the rate and lending fee. Interest rates can range anywhere from 8 to 14 percent, with lender fees ranging from one to three percent. There will generally be a broker fee attributed to the loan as well.

Traditional mortgage lenders consider a borrower’s income and debt ratio before providing their rates and fees. However, average mortgage rates are determined by Canada’s primary banks and can fluctuate depending on the Bank of Canada policy rate.

Private lending can yield a number of benefits to borrowers in Toronto or anywhere in Canada, including but not limited to:

• Faster Approval Processes
• Less Qualifications and focus on credit, income and debt servicing
• Flexible terms
• Out of the box thinking and solutions
• Prepaid interest
• No Stress Test
• Can Help Consolidate Debts
• Often lower overall costs for short terms borrowing needs

At Stonefield Mortgage, we work with borrowers to secure private loans that meet their financial needs and goals. Our simple application process ensures you have everything you need to get approved for a mortgage from a private lender — so you can reap the benefits of this tailored mortgage solution.

Qualifying for a private mortgage is a similar process to its traditional counterpart. The first step is to reach out to a Stonefield Mortgage broker to discuss your situation. We will want to understand the following:

• A purpose for the funds
• An explanation as to why you can’t qualify for traditional lending
• Credit History
• Income history
• Plan to exit the private loan

Working with a Stonefield Mortgage broker is the most efficient and effective way to begin the process of qualifying for a private mortgage After a quick discussion we will have the appropriate information and documents to get approved by a private mortgage lender in Toronto or anywhere in the GTA. Most importantly, we want to make sure that the private mortgage loan is suitable for you.

When it comes to securing a private mortgage, working with a licensed mortgage broker is the best way to get in touch with the right lenders.

At Stonefield Mortgage, our private mortgage brokers have access the top private mortgage lenders in Canada. We help you get approved for a mortgage that fits your lifestyle and will advocate on your behalf to ensure you get a fair deal.

Working with private lenders to secure a mortgage is a flexible solution if you’re interested in applying for any of the following mortgage types:

Self-Employed Mortgage

When it comes to non-traditional employment, you might need a non-traditional mortgage lender – one who understands your financial needs and can look at your finances in looser terms than the big banks. Private mortgages for self employed individuals can provide the stability needed when living outside the traditional 9-to-5 paycheck.

Bad Credit Mortgage

Sometimes, a low or bad credit score is derived from situations out of your control, such as illness or job loss. When these circumstances threaten your ability to provide for yourself and your family, a private mortgage broker can help connect you with bad credit mortgage lenders who understand your needs and help you find relief.

Second Mortgage

Whether you want to renovate your home or invest in your child’s education, utilizing your home’s equity can help get you there. Private mortgage lenders have the resources to help you secure a 2nd mortgage in Toronto to further invest in your future.

We work closely with our clients at Stonefield Mortgage to determine their mortgage needs. With this insight, we connect them with private mortgage lenders in Toronto, ON, AB, and BC to help them reach their financial goals.

Private Bridge loans

In many cases, folks cannot get a bridge loan from a bank or B lender. B lenders often don’t even offer bridge loans and banks have special criteria you’ll need to meet. A private bridge loan can help you buy your next property even before you sell your current home and is often the best solution if you can;t easily get a HELOC to close your new property.

Deposit loans

Many of our clients do not have $50,000 – $150,000 laying around to make a deposit on their next home. We have been able to find the best private lenders to offer both secured and unsecured deposit loans depending on your needs. This is often a cost effective way of tapping into the equity in your home to allow you to transact in real estate more easily.

A private mortgage broker is a financial professional specializing in connecting borrowers to private lenders in their area.

Mortgage brokers will review their clients’ situation to determine the type of mortgages they qualify for. With this information, they’ll reach out to their network of private mortgage lenders to find the best possible rates and terms for their clients. The paramount concern when arranging a private mortgage loan is: Is this private mortgage suitable for the borrower? We will determine this and confirm it with you.

Private mortgage brokers specialize in helping borrowers think outside the box and find mortgage solutions that are better suited to their needs and goals. Their expertise and network of private mortgage lenders can help you if:

• You have a low or bad credit score
• Require emergency funding to address a foreclosure or property tax arrears
• Don’t have the income to secure a traditional mortgage
• Require a second mortgage for renovations or investments
• Are interested in purchasing a unique property, including vacant land
• You already own 1 property and can’t qualify for more traditional financing

At Stonefield Mortgage, we connect our clients with lenders who can help them meet their short and long-term financial goals — whether they’re looking to consolidate debt or tackle a significant renovation on their home. When it comes to mortgages, we know what it takes to get approved.

Securing a mortgage from a traditional lender is a nuanced process in itself — but what happens when traditional mortgage lenders can’t help you?

All is not lost. You can trust the experts at Stonefield Mortgage to present you with creative solutions and workarounds, private mortgage lenders included. Our seasoned brokers know first-hand what private lenders expect from borrowers and can help you put together a winning application.

At Stonefield Mortgage, we understand that no two mortgage needs are the same. That’s why we’ve dedicated our efforts to tailoring our services to meet our clients’ unique needs.

With over 15 years of industry experience and expertise, we know what it takes to secure a mortgage — especially when your financial needs are outside the parameters of a traditional lender. We take the time to review our clients’ situation and documentation to ensure they have everything they need to secure a mortgage from our network of trusted private mortgage lenders.

We find the most competitive rates, highest loan amounts, and low credit solutions with fast and easy turnarounds — whether you’re looking to secure a second mortgage or need a private lender to help you build back your credit. It’s this daily dedication to flexibility, creativity and client-centric professionalism that sets us apart from the pack.

Stonefield Mortgage is proud to serve the great GTA as a leading mortgage broker. Wherever you are in the area, we’re close at hand to offer a steady hand and sage counsel.

We work with borrowers at every stage to find the best private mortgage rates, fees, and terms to help them achieve their financial goals.

We’ll help you find a private mortgage lender in:

• Vaughan
• Mississauga
• Brampton
• Etobicoke
• Pickering
• Ajax
• Aurora Oakville
• Markham
• Richmond Hill
• Scarborough
• Newmarket
• Whitby
• Toronto

Contact our team to set up a free 15-minute consultation.