Brampton Mortgage Broker – Rumy Gill

Commercial & Residential Mortgages. “Ready To Fund!”

Brampton Mortgage Broker - Rumy Gill

Homeownership is a source of pride among many Canadians. But what do you do when your ability to
purchase or stay in your home is compromised by overloaded debt or poor credit? Sometimes the
answer is to go to a private lender for your mortgage.
Historically, only about 4-5% of the mortgages in Canada have been held by private lenders, but as new
federal regulations have made borrowing tougher, we have seen this number start to rise.
Usually, a private mortgage is an interest only loan. Keep in mind however, that private lenders take
bigger risks and must therefore usually charge higher interest rates to compensate for those risks. Since
you will not want to have to pay those higher rates for too long a time period, it is best to consider a
private mortgage as a short-term solution and have a plan to build up you credit over the next few years
so that you can transition to a mortgage from a conventional lender.
Still however, there are times when obtaining a mortgage from a private lender make sense. These

• If you cannot get a mortgage from a traditional lender due to little or poor credit.
• If you are self-employed and cannot prove your income.
• If you are a non-resident of Canada.
• If you are in property or income tax arrears and are in danger of being foreclosed on.
• If you are seeking a mortgage on a tiny home, micro condo or mobile home. (Most banks will not
provide mortgages on spaces that are less than 600 square feet).
• If the mortgage that you are seeking is a second mortgage or a mortgage on an investment property.
Private lenders can provide a good solution for those unable to obtain a loan through a bank or another
traditional lender. Usually, private mortgages do not require as much documentation and the approval
process is more flexible. In order to qualify, you usually only require either a large enough down
payment or sufficient equity in your home.
If you are interested in learning more about private mortgages, or applying for one then contact me