Getting out of a private loan before maturity: the private lender’s penalty, the new loan’s fees, and what a regular lender wants to see since you went in.
Private and alternative lenders are a bridge. They buy you time when a bank can’t act quickly enough or a condition has to be fixed. Get a date for leaving before you go in.
Plan the way out before the rate
What you pay on a stopgap loan counts for less than how you exit it. Know before signing what needs to change (credit rebuilt, income documented, a sale completed) and about how long it will take.
No signature without the full picture
Get fees, term, renewal terms and the fallback if things slip in writing, clearly, before you commit. Renew a stopgap loan too many times and it costs more than the problem it was meant to solve.
Documents to gather
What the lender will ask for.
What the file is for
Income and documents
Debts and credit
Property or security
Timing
Lender options
Frequently asked
Which documents should I have on hand?+
Your last two notices of assessment, recent pay stubs, an employment letter, three months of bank statements and proof of your down payment. Ready before the offer, they make a five-day financing condition workable. Gathered after, they cost you weeks.
Current rates
Today’s rates, with the fine print.
These rates are indicative. Yours depends on your file, the type of mortgage (insured or not) and the lender. And look at the penalty too, it matters as much as the number.
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.
