Private Financing

Private Mortgage Financing

Despite your financial situation, as long as you have equity in your home, we can help

Everyone’s financial situation is different and not everyone fits into the standard box that banks offer. Working with our team, we can help offer alternative financing solutions as long as you have equity in your home. Private mortgages have always been our specialty for the past 30 years. We have the expertise and knowledge to help guide clients through the process and most importantly work with clients on a way to get out of the private mortgage once the term is up.

What is a private mortgage?

A private mortgage is a loan secured by real estate held by a non-traditional bank. Lenders can be private individuals, self-directed RSPs, or mortgage investment corporations (MICs). They are short term solutions (typically one year term) to fix whatever financial issue you are dealing with at that time.

There is a stigma attached to private mortgages but that is not always the case. People need private mortgages for various reasons. Yes, they come with a higher interest rate and fees but they serve a purpose and are not meant to be a long-term solution.

Some reasons for alternative financing include:

• Bruised credit – If you have a low credit score or collections on your bureau you will have a tough time getting a mortgage at a bank. As long as you have equity in your home a private mortgage is the solution.
• Quick close – Sometimes the banks can drop the ball and your financing can fall apart right before closing, instead of you risking legal action it is best to arrange a quick private mortgage to close the transaction.
• Self employed income – If you are self employed, you are well aware that the banks can be difficult to work with. We are Bax Mortgage know that income streams can vary and that shouldn’t hold you back from obtaining a mortgage.
• Bankruptcy or consumer proposals – if you have a recent bankruptcy or consumer proposal the banks will not lend to you, but we can help assist you with private mortgage financing.
• Remote location or unconventional property – Sometimes banks can be picky about the location of a property such as a cottage on an island, or a house in a rural location, a private lender can step in and help assist with the purchase of an unconventional property.
• Tax and mortgage arrears – Banks do not like to see you behind on taxes or your mortgage payments and sometimes there are unforeseen circumstances where you fall behind. We can arrange private mortgage financing to get you back on track and payout any arrears.