Alternative Mortgage Options with Three Good Reasons You Cannot Ignoreadmin
Alternative Mortgage Options with Three Good Reasons You Cannot Ignore
Private Mortgage is the most common alternate mortgage option. Over 7.87% of the Canadian mortgage market is held by private lenders, a 37.8% increase compared to the same quarter last year. This is the sixth consecutive quarter we saw this share grow, sending it to the highest level in at least a decade. It is a loan provided to an individual or a business by a lender other than the traditional mortgage lender. The distinguishing features of a private mortgage are
- Short term loans ranging from 1 to 3 years
- Interest only loans, where principal is to be paid at the end of the loan tenure
- Non-traditional lenders
Private mortgages have an edge over other mortgages because of their most attractive feature that is less than 20% down payment, hence giving the access of the mortgage market to the borrowers very quickly. For first time mortgage borrowers, a lower down payment could be a boon.
Three reasons why you can handle the steep rates offered by private mortgage providers
They Qualify Most Applicants
The liberal terms of a private mortgage are worth availing it. Despite being a party arousing a bad debt in past or someone who has recently filed for bankruptcy, you can still seek for a private mortgage and expect to avail a mortgage at good terms and conditions.
Wide Range of Options
As it is a private mortgage where the lender could range from a cash surplus family to a corporate non- banking entity, the number of private mortgage types that are available is notable unlike the few most common mortgage types offered by financial institutions.
They Provide Real time Service
Private mortgages involve less regulations and legal formalities. And also, there are instant approvals and quick grants in private mortgages which make them worth it.