Competitive rates for challenging situations.

Interest rates on private mortgages can vary significantly depending on a number of influences, in much the same way as traditional institutional lending rates do. The biggest difference between private and traditional mortgage rates, are the factors that influence them. The most important influence on a private mortgage rate is the risk associated with the deal. Low loan-to-value ratios and first mortgage security are likely to allow the lender to offer a better rate compared to a higher ratio or a mortgage in second or third position.

Privately funded first mortgages can carry rates anywhere from 7% to 12%, second mortgages from 12% to 15%. While mortgage rates offered by traditional lenders are affected by the bond market and the central bank’s overnight rate, private mortgage rates tend to stay within the aforementioned ranges. As private lenders typically lend regionally, and are very selective about which properties they are willing to lend on, competition is a factor that can affect the interest rate as well. A lack of available lenders can cause the rate to increase, while competition between multiple lenders can be beneficial to the borrower, in many cases bringing interest rates to similar levels that would be offered at a bank.

It is important to note that in many cases, private lenders may charge the borrower a lender fee. These fees tend to be anywhere from 0.5% to 3.0% of the purchase price. As most private mortgages are one year terms, the lender may charge an additional fee if the borrower requests a renewal.

Those seeking financing using a private lender would be well advised to work with a private Mortgage Broker who has access to the entire local market.

Mortgage Solutions

As lending regulations become increasingly strict, private mortgage financing is emerging as a significant source of mortgage funding. Often, there are situations in which banking institutions are unable or unwilling to lend. In these cases, seeking out a private lender becomes a preferred option. Learn more.

Home Purchase

With current lending requirements becoming increasingly tighter, qualifying to buy a home can sometimes be challenging. It is more common in today’s environment to see lenders requesting a larger down payment, or declining clients who have reasonably minor blemishes on their credit. Learn more.

Home Improvement

Improving or renovating a home can be done for a number of reasons, but the most common reason tends to be for personal enjoyment. Opportunity and timing don’t always match up, and Advanced Alternative Lending can assist in covering short or longer term gaps in financing when considering larger or smaller home improvement projects. Learn more.

Debt Consolidation

If you use your home as collateral for a debt consolidation loan, you may be able to negotiate a lower interest rate for all your combined debts, and extend your repayment term, therefore lowering your payments. Learn more.

Investing

If you have equity in your home you may be able to access it and use it to purchase investments, invest in a business or even pay off higher debt credit cards and loans and used the cash flow saved to invest. Learn more.

Funding Education

As education costs continue to climb, sometimes the only way to keep up is to borrow money. Be it for yourself, your spouse or your children, there are a number of solutions including government loans, lines of credit or borrowing against real estate. Learn more.

Self Employed

For self employed individuals, it can sometimes be difficult to qualify for a traditional mortgage. Lenders focus on several factors when making the decision to approve or decline a mortgage application, and reported income is one of the main criteria. Learn more.

Separation / Divorce

Life doesn’t always work out as planned and you don’t plan for a marital breakdown. Paying accumulated debt can be daunting, in some cases one spouse is left to pay bills on their own. You may need to draw from your home equity to pay credit cards or buy out your former spouses portion of the matrimonial home. Learn more.

Private Mortgage Rates

Interest rates on private mortgages can vary significantly depending on a number of influences, in much the same way as traditional institutional lending rates do. Learn more.

Credit Repair Tips

Credit Score

Keeping yourself aware of what is going on with your credit is very important.  Credit Bureau agencies have various programs available for you to use in order to check your credit score on the spot or sign up for a credit monitoring service. Continue reading.

Bad Credit

When unforeseen circumstances cause your credit score to drop, it’s nice to know there are steps you can take to repair it. Click here for some tips from the Financial Consumer Agency of Canada (FCAC) on how to improve your credit score.

Bankruptcy

Filing for bankruptcy can provide much needed relief to debtors who have come across unfortunate circumstances. Once bankruptcy is declared, unsecured creditors are no longer able to garnish your wages or initiate collection. Read more.

Mortgage Calculators Mortgage Info Centre

The Government of Canada provides information on mortgages via the Financial Consumer Agency of Canada. Visit their site for resources.