Contrary to what most people believe, bank loans aren’t always your best bet when taking on a new mortgage.
If you’re considering buying a new home for your family, you need to find a way to take on an advantageous mortgage unless you want to pay massive interest for years.
Historically, the best mortgage rates in Ontario have always been from banks. However, it is increasingly complicated to get approval for a mortgage loan from a bank.
This increased difficulty leads many potential homeowners to look for alternative solutions. One of the best options available is a private lender.
That isn’t to say that bank loans are always bad and should never be considered. Still, you must have all the options at your disposal before taking on a big responsibility like a mortgage.
Private lenders offer some advantages over traditional banks, and understanding the key differences will lead you to a better choice. Also, with some private lenders, you could get the best mortgage rates in Ontario.
What is a private lender?
Getting a mortgage through a bank can be a great option if you have unblemished credit, easy access to detailed financial records, and lots of patience. The best mortgage rates in Ontario are usually with banks.
However, many people often can’t get their loans approved by banks. They have strict qualifications and guidelines that have to be met to take on a loan; otherwise, you’re left with nothing.
On the other hand, private lenders operate by using funds furnished by private investors. These private investors can include banks, individuals, or both.
As these private loans carry a higher risk, the interests are also higher than traditional banks. The whole process of obtaining a loan is much simpler, though, and you don’t have the same strict qualifications.
Why choose a private lender instead of a bank?
Banks are usually much more challenging to deal with than private lenders.
For starters, a private home mortgage lender offers more flexibility than most traditional banks. Private lenders are lending institutions that are less strictly regulated than banks.
This, in turn, allows private lenders to structure many different types of loans to match the buyer’s precise financial situation.
Obtaining a loan through a private lender is much faster and easier when compared to a bank. With banks, there are mountains of rules, paperwork, and documents to compile that you have to deal with.
On the other hand, private lenders take a more customizable and easy approach to lending. A private lender might overlook financial flaws from your past that appear in your credit history, while that would never happen when working with a bank.
Private lenders will evaluate your situation and consider whether or not it’s reasonable for your income. Also, they can offer the best mortgage rates in Ontario.
Why choose us as your private lender in Ontario?
Northwood Mortgage has been in the mortgage industry for years, and with our team of highly experienced professionals, we’ll ensure that you get a hassle-free private loan to fit your needs.
We’re one of the GTA’s larger brokerage firms, and we always strive for total customer satisfaction and offer you the best mortgage rates in Ontario.
At Northwood Mortgage, we understand how much of a headache it can be to deal with all the paperwork and restrictions of taking on a new mortgage. That’s why we’ll make the whole process hassle-free.
Knowing what options you have before taking on a loan is crucial if you want to save money and time in the long run.
To book an appointment, call Northwood Mortgage now at 888-492-3690 or contact us online.