Private mortgage lending is our specialty. 90% of the loans we arrange at IFC are with private lenders. We arrange all types of mortgages and it can be for any purpose.
We have many private lenders. Some of them are retired people investing RRSP for income, some are builders who like construction loans, some are regular people borrowing money to lend on mortgages. We deal with Mortgage Investment Groups, Mortgage Investment Corporations, and we also deal with banks and institutional loans. Most of the time IFC will write the commitment for the lender. IFC will never put a borrower into a loan that isn’t suitable or helpful to the borrower. There are many reasons why people want a private mortgage. These are the best reasons for borrowing privately. And I hope it gives you a good benchmark to decide if this is good for you. Here are the best reasons to use a private lender.
- You’re hoping to increase the value of your home;
- Your accounts receivable are late, you need a short term loan to keep bills up to date;
- You’re buying another property and you want the money for a deposit to purchase;
- You’re a builder or general contractor and the loan is for your next project;
- Debt consolidation for credit cards.
When you apply for a private mortgage, the lender considers these major points:
- The purpose of your loan, what the money is being used towards;
- The exit strategy to pay the lender at the end of the term;
- Location and loan to value;
- Your current status with Canada Revenue, do you owe taxes?
- Are the property taxes paid up to date?
Are you having trouble getting approved? We can help in these situations:
- Your citizenship is outside of Canada. That’s not a problem as long as you have title;
- Condominiums are OK for 2nd mortgages;
- Cottages, farms, raw un-serviced land, commercial properties, environmental cleanup;
- Construction Financing behind a bank 1st mortgage;
- Rent to Own situations; mortgage.