04 Mar Could A Private Mortgage Lender Be the Right Fit for You?
For private lenders, 2021 looks set to be another bumper year, with the private mortgage market stronger now than it was during pre-COVID times.
With the unique challenges of the pandemic being felt by lenders and borrowers globally, as well as in Canada, it seems that more attention has been focused on the private sector. Responding to decreases in liquidity and demand at the beginning of the pandemic, traditional lenders started to restrict their lending by tightening requirements, and borrowers wanting to purchase a property were being turned away left, right and center. With no alternative but to turn to private lenders, many were pleasantly surprised by what they found, even if they had never envisaged such a turnaround.
High quality borrowers turning to private lenders
The traditional banking system has, of late, become closed off to many borrowers seeking a loan to buy a home, even those with equity and down payments, leading to a surge in demand for private lenders services. There are also those business-for-self individuals who may be looking to invest in their operations, or try to stabilize them at least, during a time when a fall in revenue has hit their busines hard.
Private mortgage lenders must up their game to meet demand
Switching to a private lender isn’t always an easy or straightforward decision, and borrowers will inevitably have myriad questions about the process involved, and assurances they wish to seek. Private mortgage lenders must recognize this shift from borrowers, and help borrowers find reward in their services.
How a mortgage broker can help
While it might be comforting to know that a private mortgage lender is an option, when a traditional lender may not be, it’s important to seek some guidance when searching for the right one, and a mortgage broker is the person best placed to give you the advice and support you need.
A mortgage broker will look carefully at your circumstances before assessing your options and finding a private lender who will be the right fit for you. They will be looking for a lender who communicates well with its customers, responds to requests quickly and efficiently (from both brokers and customers), and has the desire to work closely with the broker themselves. They will also be seeking a private lender who can offer the kind of flexibility that other prime lenders cannot, and who can waive certain conditions.
The creative advantages of private lenders
Oftentimes, a private lender is able to offer their customers solutions that traditional lenders aren’t able to, and can help them correct credit, pay out property tax arrears or even help consolidate debt to increase cash flow. If you’re struggling to find a conventional lender to help you purchase a home, consider engaging with a professional mortgage broker from the outset, to see what alternative lending solutions they may be able to find for you.