Private lenders across Canada offer various loan types, all with their own terms and conditions. Below are the most common loan types you may be offered through a private lender.
Private Mortgages
Private mortgages are typically short-term loans offered by private syndications, independent lenders or individuals used to purchase a home. Because these loans are generally short-term, their amortization periods last anywhere from six months to three years. Private mortgages are funding options for borrowers that are unable to qualify for funding through traditional banks or public lenders, but they will come with much higher rates and are generally interest-only—meaning your payments only go towards interest until the term is up, not the principal amount. Additionally, private lenders may give you a mortgage value based on the value of your property rather than your income.
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