In the past few years due to low interest rates, Canadian investors are moving towards private mortgage investment options. This investment plan offers a higher interest rate than any other investment tool. Additionally, the private mortgage sector is the fastest growing in Canada. In this blog post, we will share some useful insight on the advantages of private mortgages!
A private mortgage is a type of loan that is not from a traditional lending institution such as a bank or credit union. The mortgage term is usually shorter last for one or two years only and given to that individual looking to improve their credit score or wanted to consolidate debt. Moreover, private lenders are not rigid in regulations like banks or credit institute and thus offers a number of advantages to borrowers. Here are some ultimate pros to take a loan from a private lender:
• Easy Qualification Process- The qualification process of a private lender is much easier than traditional lenders. Private lender undertakes a holistic approach while banks must follow strict guidelines to qualify for a loan.
• Disburse Loan Amount Quickly- Traditional lender underwriting process is time-consuming, long, and tiring. Whereas private lenders follow simplified and tailor-made solutions- they acquire only necessary information avoiding the paperwork.
• Exceptional Interest Rate- Due to a flexible approach private lender offers tailor-made solutions and often offer a range of interest rates and meet borrowers’ unique requirements.
• Loan To Self-Employed Borrowers- Private lender offers mortgages to those with unverifiable income or can say self-employed with irregular income.
• Mortgage to Bad Credit Score- For an individual with a bad credit score or with mounting debts is unable to find a lender. Whereas private lender is willing to invest in those individual and help them improve their credit score and build an income.
With that said, if you are looking to invest in the real estate market as a private lender then talks to our trained professionals who will help you to yield a higher interest rate. Do you any queries? Get connected with us!