Most Canadians have heard of private mortgages but have little knowledge of what they actually are or how they work. Private mortgages can be an alternative source of financing for borrowers with credit, employment, or income issues. Private mortgages usually have a higher interest rate due to the higher risk involved in the investment. Private mortgages don’t have to be scary and we understand that sometimes you just need a break!
First Mortgage Rates as low as 6%
No payments for up to 6 months!*
Most banks and institutional lenders typically need to satisfy strict mortgage lending criteria and are not willing to budge too far from the standard mortgage approval requirements and as a result, will deter from such transactions. Private lenders on the other hand, are often willing to fund such mortgages based on the equity in the home and location of the property.
A private mortgage can also be an alternative solution that may protect a client from foreclosure on their home and may provide the homeowner the time needed to get their credit back on track. In most cases, private mortgage funding is a short-term solution that is used until the client’s finances can be transferred to a more suitable institutional financing company. At Unimor, we offer private mortgage interest rates as low as 6% to qualified borrowers.
Reasons why you might need a Private Mortgage:
- Bruised credit score
- House is under power of sale
- Large amount of property tax arrears
- Recent discharge from bankruptcy or consumer proposal
- Inability to prove sufficient income
- Recently started new employment
- Temporary job loss
What is a Private Mortgage?
A private mortgage is one that is funded by an individual, and in most cases, administered by Unimor Capital Corporation. An investor may lend money to borrowers who have equity in their property, need financing for a short term (usually 1-3 years), or do not qualify for a mortgage by any other means, like through their bank. The interest rate is usually higher due to the greater risk involved for the investor taking the mortgage.
*Note: All mortgages are subject to borrower qualifications. Rates and terms are subject to change.