Private lending in Canada has grown in the past couple of years. This is because oftentimes individuals are turned down by a traditional lender or they need a mortgage option customized for their specific circumstances. A mortgage is a considered to be a “private” mortgage if the lender is not a bank, registered loan or trust company, a licensed insurer, or a subsidiary of any of them; pension fund; or any other entity that lends money in the ordinary course of its business. The amount you can borrow will depend on your specific personal circumstances including the type, value of the property and your income. There is no minimum equity stake requirement needed in the property for private mortgages. A private loan normally has a processing time of 1-3 weeks including the release of funds for the applicant.
Private mortgages could benefit some buyers especially if they no longer qualify for financing through traditional bank. The downside of a private mortgage is a higher interest rate and various fees associated. However, even the additional financial obligation may be more beneficial than for example defaulting on an agreement of purchase and sale due to lack of financing.
There are important steps that should be considered before getting a private mortgage. The terms of the contract should be reviewed carefully to understand the deal and risks involved before signing the contract. Having a lawyer review the terms of the contract will minimize the risks involved and help you make an informed decision. It is important to understand the costs structure and other financial terms before signing the contract. It is also important to understand your future plan once the private lending term is over. Private lending contracts are usually short term with an average term of 1-2 years. A lawyer can help you in recommending a future plan and how to obtain lower interest rates. You must also review and understand the prepayment penalties if you opt-out of the contract before.
extra care and attention beyond the call of duty and very happy with their professional attitude. No problems,Only Solutions. Finally met someone who cares and is honestly genuine to the core
Maria and her knowledgeable and hardworking staff provided us with excellent service in our property closing. They are easy to reach, answered all questions we had timely and professionally. I would certainly recommend MBLAW to my friends and family. And I will work with them again if I need Real Estate lawyer's help.
It was such a great pleasure to work with MBLAW and Mariya in particular. I am a non-resident of Canada and Mariya took her time to explain the process of selling the property and tax implications after closing. She referred me to a great accountant who was able to get the certificate in record time. Mariya went above and beyond her call as my lawyer to help me. The buyer has some post-closing issues but Mariya was able to handle the situation with minimal cost to me. Very dedicated and professional. Would recommend 100%! Thank you, Mariya! You and your company are the best!
We have closed our real estate transaction with Mariya. Mariya is very professional and competent legal practitioner who is always ready to answer questions and help. Her final report was impeccable! I highly recommend her firm and real estate services to anyone!
I would highly recommend this firm to anyone seeking a real estate lawyer. Mariya is very knowledgeable, personable and is easy to reach. She goes above and beyond to answer all client questions and inquiries and ensures that clients' transactions go through smoothly and without a hitch. Her staff is also helpful, friendly and very responsive. Overall a great firm!
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