A private lender looks mainly at the property and available equity, much less at your income. That is what makes it fast, and expensive. It fits when the deadline is short or a condition needs fixing first.
Read the real cost
Add the rate, the lender fee, the brokerage fee and the notary. Over a one-year term those fixed costs often weigh more than the rate difference itself.
Plan the exit
Before signing, know what has to change to return 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 is not a product to hold; it is a bridge to conventional financing. Start preparing the exit in the first months, not as maturity approaches.
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 as possible while the file is being stabilized for a bank or alternative lender.
Current rates
Today’s rates, read with their conditions.
These rates are indicative. The one you get depends on your file, the type of mortgage (insured or not) and the lender, and the penalty attached to it matters as much as the number.
Buying, renewing, refinancing or an unusual situation: describe where you are at, even if it is still vague. Mathieu replies with the next steps and the documents to gather.
