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Thursday, August 16, 2012

What is a private mortgage?


What is a Private Mortgage?
  
 
  

It is a mortgage that is held by a private individual where the client could not get approved through an A or B bank.

People will use a private mortgage for the following reasons:

  1. If the mortgage is in arrears with the bank
  2. If there is a grow op of marijuana
  3. If there is a bankruptcy and the client has not or just been recently discharged
  4. If the client needs money for construction
  5. If the client does not show a lot of income

These mortgages are short-term for only 1 yr until the client gets their situation better. The interest rates are higher, but it is better than paying 19-25% on their credit cards.

The public sometimes are upset to pay a private individual higher interest rates, but aren't they upset to pay the bank the higher interest rates?

The public needs to understand that the banks will take a polaroid photo of your current situation. Once looking at the photo, if they do not like it they will not be able to help you out.

Thankfully, these private individuals do exist to help you short-term and get you out of this situation and when there are improvements we can move you back to the bank.

That is why it is important to understand that the banks are running a business and the client cannot take it personally.

It is important to be informed and educated.


 

 

For more information contact us at 
416-920-9931 or mortgages@eddiemac.ca

Visit us online at www.eddiemac.ca

Your Toronto Mortgage Broker
637 College Street, Suite 201, Toronto ON, M6G 1B5