How to Get Qualified for a Private Mortgage in 2019
If you have been turned down for a mortgage before, you may be wondering if homeownership will ever
become a reality for you. Generally speaking, private mortgages are the easiest to qualify for but the
criteria could vary significantly from lender to lender. In most cases, your credit doesn’t need to be as
good as it does for a traditional mortgage. Private mortgages are often a good choice for those with
poor credit, those who are self-employed and can’t prove their income, those wishing to purchase non-
traditional properties, and those who are new to Canada.
The trade-off of private mortgages being easy to qualify for, in most cases is that they come at a higher
interest rate. This of course, however could be well worth it if it means that you can finally buy a home.
It can also be a valid strategy to use a private mortgage as a means to rebuild your credit over the
course of a year or two in order to qualify for a traditional mortgage.
What Do I Need to Qualify for a Private Mortgage?
The answer to this question is that it depends. For starters, it depends on the lender.
A private mortgage lender could be a lending company, but it could also be a friend or family member.
In either case, you will want to have a legal agreement in place in which both parties agree to terms like
the length of contract, renewal conditions and interest rates. The agreement should also answer
important questions such as what happens to the property if you default on the loan.
Depending on your unique circumstances, the lender may wish to have other information as well. For
example, if you are getting a self-employed private mortgage, the lender may wish to have information
about your business such as your revenue and expenses, how long you have had your business, and the
structure of your business.
While private mortgages are generally considered easier to qualify for, there may be certain scenarios in
which a private lender could still reject you based on your credit. If this happens, it may be necessary to
get a co-signer for your loan in order to qualify.
Contact Matrix Mortgage Global
At Matrix Mortgage Global, we not only have expertise in private mortgages but we have connections to
a number of specialized private lenders that can help make your dream of home ownership a reality.
Contact us today for more information.