Private mortgages
A short-term mortgage from a private lender, based on the equity in your property rather than your credit.
Who they are
Private lenders are individuals or mortgage investment companies, not banks. They lend against the property itself, so a first or second mortgage is possible when other lenders say no.
What the lender looks at
Mostly the equity in your property: what it is worth against what is already owed on it. Credit and income matter less. What matters most is how you will pay the loan back.
What it costs
The highest rate of the three, often paid as interest only, plus lender and broker fees, legal fees and an appraisal. Ontario requires the costs to be set out in writing before you commit, and Amar goes through each one with you.
The plan after
A private mortgage is a bridge, not a home for your mortgage. Usually a year or less, while you sell, clear the debts or rebuild credit, then move to a B lender or a bank. You agree the way out before you go in.
General information, not advice. What a lender offers depends on your credit, your income and the property.
Not sure which one you need?
You do not have to know. Tell Amar your situation and he will say which lenders are worth trying, and what each one would cost, before anything touches your credit.