Private Mortgage

 Private mortgages are non-traditional lending solutions offered by individuals or private companies. They’re typically used when borrowers don't meet the strict requirements of banks or institutional lenders. 

• The primary loan is registered on the property title
   
• Lower risk for lenders, usually better terms

• A secondary loan behind the first mortgage
   
• Higher risk = higher interest rates
   
• Used for debt consolidation, home improvements, or quick cash access

• Temporary funding between property sales or before securing long-term financing
   
• Fast approvals, interest-only payments
   
• Higher rates but flexibility for time-sensitive deals
   

• Approval is based mainly on property equity, not income or credit
   
• Ideal for self-employed, credit-challenged, or new immigrants
   
• Loan-to-value (LTV) typically maxes out at 75–85% of property value

• For owner-occupied homes, rentals, or multi-unit properties
   
• Used when traditional financing is declined
   
• Common for short-term needs, with 1–3 year terms

• For business-use or income-generating properties
   
• Useful for development projects, land purchases, or special-use properties
   
• Lenders assess property income and marketability, not borrower financials

• Private construction loans for custom builds, infill homes, or redevelopment
   
• Released in draws based on construction milestones
   
• Suitable for developers needing flexibility