Alternative & Private Mortgage Lending
With the recent mortgage rule changes, many home owners and potential mortgage borrowers no longer qualify for traditional bank or "A" mortgage lending. If a borrower cannot get financing through a bank or a traditional "A" lender, then there are many other options to consider. Alternative or B Mortgage Lending could be beneficial for those with bruised credit, self-employed borrowers or a buyer/homeowner looking for financing on a unique property. Alternative Mortgage Lenders are still very reputable and large financial institutions but may charge a slightly higher interest rate and/or a lending fee. Private Mortgage Lending is recommended for short-term financing situations whether it be a few weeks or a year when all other options are off the table. The interest rate and lender fees are typically much higher in this case.
Speaking to a mortgage professional about alternative or private lending is extremely important as these products and lenders may not be suitable for everyone. If alternative and private lending is an option for mortgage financing, it is important to have a short and long-term plan in place so that one day you can hopefully switch your mortgage back to a traditional "A" lender.