Mortgage solution
Private mortgage
A private loan buys time when a bank can’t act. It is a bridge, not a destination, and the question to settle before signing is how you leave it.
A short-term financing tool
A private lender looks mainly at the property and the equity available, much less at your income. That is what makes it fast, and expensive. It fits when the deadline is short or a condition has to be fixed first.
Read the real cost
Add up the rate, the lender fee, the brokerage fee and the notary. On a one-year term, those fixed costs often outweigh the rate difference itself.
Plan the exit
Before signing, know what has to change to get back to a conventional lender: credit rebuilt, income documented, a sale completed. A private loan renewed a second time usually costs more than the problem it solved.
Documents to gather
What the lender will ask for.
- Reason for private financing
- Expected term
- Total fees
- Property equity
- Repayment or refinance plan
- Risk if the plan changes
Frequently asked
How long do people keep a private mortgage?
As briefly as possible, typically six to twenty-four months. It isn’t a product to hold. It’s a bridge to conventional financing. Start preparing the exit in the first months, not as maturity closes in.
Is a private mortgage risky?
It can be useful, but it costs more and should normally be temporary. The exit plan matters as much as the approval.
How long should I keep it?
Usually as short a time as possible, while the file is being shored up for a bank or an alternative lender.
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.
Have your file reviewed before you commit.
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Contact
Tell Mathieu about your project
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.
- Your request goes directly to Mathieu
- Across Quebec, in French and English
- No fee on most residential files