In order to fully capture the idea of a private mortgage in Pickering, Ajax, it is essential to understand basic mortgaging. A mortgage, in simple terms, is a legal agreement between a mortgagor, and a mortgagee. This legal communication validates the conditional right of a property owner over any piece of real estate, as security for a loan. Until the loan is paid off in segments, official documents record and note the property as having been mortgaged. Mortgaging is a common practice in Canada, with the Canadian Mortgaging and Housing Corporation acting as the country’s national housing agency.

What Is Private Mortgage Lending?

Private mortgaging, on the other hand, is removed from any governmental or official influences; instead, it functions on similar principles, but with private lenders in place of official corporations. An average individual, owning any area of property, is able to contact a private loaner in order to have their property mortgaged, and pay off the loan in increments. The records for this deal are not made public, and the entire exchange is carried out privately.

Real estate is not the only asset that may be mortgaged; many individuals mortgage privately-owned vehicles, jewelry, or appliances. If the exchange is a case of private lending, the mortgagor is able to take out a loan from privately-owned organizations, as opposed to banks or official finance providers.

Are There Any Eligibility Criteria?

Canada’s housing market has witnessed recent heat in the past handful of years; the housing crunch produces ever-hiking rates – specifically for highly-coveted areas, such as those in Toronto or Vancouver – and the crisis continues to place the future of mortgaging – particularly privately-conducted lending – in prime position.

A number of recent regulations have made it difficult for mortgagors to pay back their official dues; these regulations involve stress-testing to confirm whether a mortgagor possesses the capacity to pay the loan back. These tests have increased the basic increment rate to nearly 5% – many debtors may not be able to prove that they can pay back loans at such high rates, particularly when bearing required down-payments in mind.

As a result, innumerable debtors turn towards private mortgaging, or private lenders – often within their immediate families. The rate of payment is far more affordable, and the entire process requires significantly less documentation and criterion. Not much – apart from proof of receiving a steady flow of income – is required for Canadian citizens or entities to apply for a private mortgage.

What Are The Differences?

The differences between basic mortgaging, and private mortgaging, primarily boil down to documentation, and how the latter carries a shorter process of approval (often requiring weeks, as opposed to 45 days). Moreover, private mortgages are simpler to qualify for, and possess negotiable pay-back rates – though they usually carry shorter loan-return periods.

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  • After speaking with several Brokers, my wife and I found that Steve Bryan at Mortgage Alliance was the right broker to handle our mortgage situation. He was highly professional, proactive, knowledgeable and patient. Steve and his associates followed up regularly, and took the time to explain all the pros and cons, this allowed us to make the best decision for our family. They work swift and accurate, wrapping up all of our matters within a couple of weeks. We would definitely contact Steve Bryan for any future mortgage concerns and recommend anyone looking for mortgage services to his brokerage.

    — Peabo & Sabrina S.
  • Referring u to friends/family is easy. I am picky and you addressed all my questions/concerns in a timely and professional manner. You were also extremely knowledgeable and provided me with some key information that assisted me in getting a property that meets all my needs by telling me about the home improvement loan from the bank.

    — Sophia
  • I have known Steve Bryan for the past three years …

    At our meeting I told him I was looking for a second mortgage on my home, he explained the steps involved in the process with great clarity he was very articulate, professional and effective. Steve was able to secure the mortgage with B2B bank at a reasonable interest rate and to my satisfaction.

    What I appreciated most was Steve’s dedication, commitment and driving results, I will recommend him to anyone in the future.

    — Judith D
  • If you’re looking for someone that will work for you and have your best interests at heart your search stops here. Steve fights for his clients to the end and never gives up on a deal until he gets it done. Thank you Steve.

    — Shelley D
  • We were recommend to Steve by a family friend and he was very professional and took the time out to lets us understand the pros and cons for what we wanted to do. When we decided what we wanted to do he gave us the best option. He’s patient and he makes sure you have all required documents before proceeding. I would recommend him to everyone.

    — Damian H
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