Private Lendng

Defining Private Lending

A private lender is a non-institutional (non-bank) individual or company that loans money, generally secured by a note and deed of trust, for the purpose of funding a real estate transaction. Private money lenders are generally considered more relationship-based than hard money lenders. They are not as constrained by regulations as traditional lenders are and can approve mortgage financing that conventional lenders cannot (i.e. over 80% in the case of a mortgage refinance). While not being as constrained, they are open to more risk exposure as “private financing” does not have the same buffer parameters than institutional financing would have. Mortgage brokers often have a large network of private lenders they deal with.

Private lending gives borrowers more options

Shane and his experienced team are dedicated to delivering the highest standard of excellence in service and seek to provide mortgage financing to a wide range of clients who are seeking both conventional and non-conventional funds. While private lenders are often considered non-traditional lenders, they provide a valuable space in the mortgage marketplace for some clients.

While not all clients will find private lenders are their first choice, there are some that will find private lending as a viable path to home ownership or the  quick and easy conversion of their home equity into funds. 

Private Lending

Private lenders have realized that conservative lending guidelines used by banks and conventional lenders exclude many individuals who are able to pay for mortgage financing but may have a low credit score, bruised credit history, or irregular income with a difficult to prove income history. As such, private lenders will often look beyond these factors and focus on the value of the property and its marketability, as oppose to simply the borrower’s credit history. This opens the accessibility of mortgage financing for home purchases and refinances to a wider range of potential borrowers.

Another benefit of utilizing a private lender may be that a borrower requires immediate access to funds, without the headache of having to jump through the hoops that traditional lenders may require and the length of time that it takes for them to be able to transfer funds. Private lenders are able to provide financing within as little as 24-48 hours, depending on the various lender’s requirements. This allows many borrowers access to funds quickly and easily to complete or finish an over-budget renovation product, close a home purchase, or assist with short-term financial need.

Shane and his experienced team have longstanding relationships with a range of local and national private lenders who pride themselves in being able to help clients when institutional lenders will not, satisfying the needs of more and more Canadians each year. Shane and his team work with these trusted lenders to understand the needs and goals of their clients and how the financing they provide can help them to own their new home or take up to 100% of their home value through a refinance or second mortgage. Contact Shane to see if private lending may be suitable for you now.

  • Shane and his team can arrange private financing through a diverse range of trusted local and national private lenders, offering their own funds to loan.
  • Private lenders work quickly, meaning that borrowers can obtain fast and easy access to the financing they require, eliminating lengthy wait times.
  • Private lenders focus greatly on the home value and marketability as opposed to factors surrounding the homeowner such as credit score and income.
  • Private lending is often a suitable option for those with low credit score, bruised credit history, or irregular income and income history.
  • Private lenders are not required to adhere to many of the lending rules and guidelines placed on institutional lenders by the government. Amongst other benefits, this means that private lending can extend beyond 80% home value.
  • Shane and his team will present the option for private lender financing when it is of benefit to his client and makes sense in their unique financial situation.

Is a private lender right for you?

Shane and his team are ready to serve you, providing access to a range of trusted local and national private lenders. If you’re looking for a quick easy mortgage to take additional funds out of your home equity or even buy a home, contact Shane now.

Benefits of Private Lending

Fast Access to Funds

Private lenders are often able to provide quick and easy access to funds when clients are in a situation when they require immediate funds while institution lenders tend to take slightly longer to approve and process.

Higher Approval Rates

The requirements for each private lender may differ from lender to lender, but generally private lending places more emphasis on the value of your home and the home equity you own and less on credit or income.

Diverse Properties

Private lending also offers the flexibility of being able to provide access to funds for those who wish to purchase or refinance an unconventional property that an institutional lender would refuse to finance.

A private lender may be able to help you access fast funds

While conventional lenders are most the most popular, private lenders are increasing in popularity throughout the country as more people understand the value private lending can offer them; from quick and easy access to funds to no limit on amount of home equity extractable.

Private lenders play a valuable role in the mortgage marketplace. For some of my clients they provide a quick and easy way to access additional funds from the equity in their home, providing the ability to convert over the 80% of home equity into funds that is permitted by institutional lenders. For others, private lending allows them to buy their next home. Whatever the need, I can arrange private lending.

― Shane Osmond, Mortgage Professional