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Who would go into private lending?

Every borrower’s situation is unique, and the right lender can make all the difference. Private financing isn't for everyone. However, private lending is simply the fastest, most flexible way to obtain a mortgage. While the fees and interest rate can sometimes be higher than a typical big bank, it allows someone to obtain financing where it would otherwise be impossible. Private lending is known as a temporary solution, not a long term mortgage financing option. When paired with a proper exit strategy, private lending is a tool that is used by a huge variety of people. 

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✅ Quick Funding (Fund in 24-48 hours)

✅ Equity Take-Out

✅ High Debt Load

✅ Unique Properties (Modular Homes, Remote Areas, etc.)

✅ Divorce or Seperation

✅ Short Term Solutions

✅ Bridge Financing

✅ Low Income & No Income

✅ Self-Employed

✅ Bad & Bruised Credit

✅ Consumer Proposal & Bankruptcy

✅ Foreclosure Saviour

✅ Second & Third Mortgages

✅ Renovation & Construction

How Private Lenders Evaluate Mortgage Applications

Private lenders take a different approach than traditional banks. Instead of relying heavily on employment income and credit scores, they primarily evaluate:
 

• The property value
• The amount of equity available
• The loan-to-value ratio (LTV)
• The overall exit strategy for the loan
 

Because the mortgage is secured by real estate, the property itself provides a strong layer of security for the lender. This allows them to offer solutions in situations where conventional financing may not be available.

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KEY TIP: The more home equity, the better the rate!

Client Success Stories

Self-Employed

Situation:
Michael has run a successful restaurant for over 10 years. To reduce taxes, he pays himself a lower salary and keeps more income within his corporation. When he decided to purchase an investment property for future retirement plans, his reported income was too low to qualify with a traditional bank.
 

Solution:
To secure a well-priced foreclosure quickly, we arranged short-term private financing based primarily on the property’s equity. This allowed Michael to complete the purchase without triggering a large tax withdrawal from his corporation. We also created a clear plan to transition back to traditional financing, and he refinanced with a major bank two years later.

Wondering if this is for you?
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