Private financing is a solution used to get a higher interest rate mortgage and the reasons:
- Short and Quick Approval Process
- Qualify Easily
- Avoid qualifying Stress-Test
Private mortgages tend to be a much quicker form of financing than conventional mortgages. While getting a mortgage with a bank usually requires a much more time consuming and tedious approval process, getting approved for a private mortgage is a much quicker and less onerous process.
A client came to us with 9 days to close on a property which was a pre-sale where the developer was not giving any extensions. This was not enough time to get a traditional mortgage arranged given the circumstances.
We were able to secure a private mortgage that allowed the client to complete the deal. This not only saved the client from losing their deposit, but also they benefitted from the $200k lift in value in the property that they purchased. Shortly after the mortgage completed we were able to place the client with a traditional lender.
WHAT WE CAN DO
At Highpoint Capital Solutions we are able to help with deals where the time for completion was very tight for getting a regular mortgage and when regular lenders (called banks or credit unions) were not able to facilitate the credit, Private lending is the best option to secure the deal when the numbers make sense.