Understanding Private Mortgages: When and Why Should You Consider Them?
When it comes to financing real estate, traditional mortgage lenders like banks and credit unions often come to mind. However, there are situations where borrowers may need alternative financing options, and one such option is a private mortgage. In this blog, we will delve into the concept of private mortgages in Canada, explaining what they are and when they can be a suitable choice for borrowers in Canada.
What is a Private Mortgage?
A private mortgage is a loan provided by individuals or private lending companies instead of traditional financial institutions. These lenders are often private investors, mortgage investment corporations (MICs), or private funds. Private mortgages function similarly to conventional mortgages but differ in terms of the lender and the terms of the loan.