Private Mortgage Calgary: Fast Closing

Who are Private Mortgage Lenders in Calgary?

Private Mortgage Lenders in Calgary are non-institutional individuals or companies that offer mortgage financing outside of credit unions and traditional banks. They provide flexible loan options, catering to borrowers with poor credit, self-employment income, or those who do not meet conventional lending criteria.

These lenders can fund home purchases, second mortgages or refinance existing loans more quickly, at a higher interest rate.

How much will a Private Mortgage Cost me in Calgary?

Private Mortgages in Calgary are more expensive than traditional bank loans, with interest rates comparatively higher ranging from 10% to 18% depending on the credit profile, type of property and loan-to-value ratio.

You will pay lender and broker fees usually 1% to 3% each of the mortgage amount. Private mortgages are costly short-term solutions best used when traditional lenders are not an option.

When to Use a Private Mortgage Lender in Calgary?

• If you have bad credit and cannot get a loan from the bank.
• When you need to borrow more money than a bank is willing to lend.
• To buy a property that the bank will not finance.
• To speed up the process of getting a mortgage.
• Need a mortgage for a short-term investment.

Services offered by Calgary Private Mortgage Lenders

• Bad Credit Mortgage: Bad Credit is the service most borrowers in Calgary think of when talking about private mortgage lenders. These mortgages have higher interest rates and are for those who cannot receive lending elsewhere. These loans should be used for a short period.
• Second and Third Mortgage: It is a loan taken against home equity. Here you are borrowing additional against the money you have already paid on your house. A second mortgage is taken out when you need more money than what a bank will lend you. A third mortgage is similar to the second mortgage, but it is an additional mortgage on top of the second mortgage. They have high interest rates as the third mortgage lenders are the last creditors to get paid on your default.
• Debt Consolidation Mortgages: This mortgage allows you to combine all your debts into one mortgage. If you are struggling to make multiple payments every month, this mortgage is a go-to option. Consolidating the debts will lower interest rates enabling you to extend the term of your mortgage.
• Land Acquisition Loans: Banks in Calgary are not willing to finance land acquisitions or development loans because of the high risk involved. The best private mortgage lenders in Calgary are more willing to take on the risk. They can do this because of higher interest rates and are not as tightly regulated as banks.
• Construction Loans: Construction loans are similar to land acquisition and development loans. But they are for the projects under construction. These loans have higher interest rates than regular mortgages and are a great option if you need to finance a construction project.
• Bridge Loans: Bridge loans are short-term loans used to cover the gap between the purchase of a new property and the sale of the old property. They are usually for a period of 6 to 12 months.
• Rental Property Mortgage: If you have multiple rental properties, receiving financing for additional buildings is tough. One can use a rental property mortgage to finance the initial purchase and then refinance to a standard mortgage later.