"At Clover Mortgage, we specialize in helping Canadians secure flexible and fast private mortgage solutions tailored to their unique needs. Whether you're a first-time buyer, investor, or facing challenges with traditional lenders, we’re here to guide you every step of the way."
Steven Tulman, President and Principal Broker at Clover Mortgage.
A private mortgage is a loan from private lenders, such as individuals, companies, or investment groups, to help borrowers finance real estate. Unlike traditional bank loans, this is less restrictive, making it an attractive option for those who may not qualify for a conventional mortgage. These are also great alternatives for those who need access to their home equity quickly and without too many hurdles.
| Feature | Private Mortgages | Traditional Mortgages |
| Approval Time | Faster | Slower |
| Credit Requirements | Flexible | Strict |
| Interest Rates | Higher | Lower |
| Loan-to-Value Ratio (LTV) | Can vary | Often capped at 80% LTV |
| Repayment Terms | Shorter periods | Longer periods |
Private mortgage lenders offer flexible terms, faster approval processes, and the ability to finance unconventional scenarios. These lenders assess applications based on the property’s value and the borrower's equity, rather than rigid credit scores or income proof.
Private mortgages are a lifeline for individuals facing challenges with traditional lenders. Whether it’s for purchasing a new home, consolidating debt, or investing in real estate, private lenders in Canada cater to diverse financial needs.
Clover Mortgage connects you with trusted private lenders offering flexible terms and fast approvals.
Contact Us NowPrivate lenders often provide solutions tailored for residential needs, including:
Private mortgages are a popular choice among investors:
Private lenders cater to unconventional scenarios:
Refinancing Challenges: Overcome barriers with flexible refinancing options
Access to Capital: Private lending bridges the gap when banks and credit unions decline funding
Private mortgage loans often come with higher interest rates compared to traditional bank loans. This reflects the higher risk taken on by private money lenders who offer financing to borrowers that conventional financial institutions may reject.
Private mortgages typically have shorter repayment periods, ranging from one to three years. Borrowers need to plan for repayment or refinancing within a limited timeframe, making an exit strategy critical.
Without a solid plan for repayment or transitioning to traditional loans, borrowers risk defaulting. Private investors and lenders prioritize understanding how borrowers intend to pay off the loan, whether through selling the property, refinancing, or other means.
Experienced mortgage brokers can guide borrowers through the complexities of private money lending. They can connect borrowers with the best private mortgage lenders in Ontario and other regions, ensuring suitable loan products.
Borrowers must fully understand loan terms, including interest rates, repayment schedules, and any associated fees. Transparent communication with lenders is essential to avoid surprises.
Developing a strategy for transitioning from private mortgages to traditional loans can mitigate risks. Proper planning ensures borrowers leverage private loans for immediate needs while securing stability for the future.
Private mortgage rates vary depending on:
| TERMS | FIXED | VARIABLE | PRIVATE 1ST MORTGAGE | PRIVATE 2ND MORTGAGE |
|---|---|---|---|---|
| 5 Year | 4.09% | 4.45% | ||
| 4 Year | 4.19% | |||
| 3 Year | 4.19% | 4.60% | ||
| 2 Year | 4.89% | 6.59% | 8.99% | 10.99% |
| 1 Year | 5.79% | 7.09% | 8.49% | 10.99% |
| 7 Year | 4.34% | |||
| 10 Year | 5.65% |
Comparison with Traditional Rates
While traditional loans offer lower rates, private lenders provide faster access and fewer barriers, making them a valuable financing option despite higher costs.
Let our experienced brokers at Clover Mortgage guide you to the perfect solution.
Book free consultationPrivate lenders require streamlined paperwork, including:
| Feature: | Private Mortgage | Traditional Mortgage |
| Approval Process | Faster, less stringent, property-focused | Slower, credit score and income-dependent |
| Interest Rates | Higher, reflecting risk | Lower, typically offered by financial institutions |
| Flexibility | Customized terms, ideal for unconventional scenarios | Standardized terms, less adaptable |
| Qualification Criteria | Equity-focused, suitable for those with low credit or non-traditional income | Stringent requirements, including passing the mortgage stress test |
The private mortgage landscape varies widely in Canada. For example:
Cities like Toronto often feature higher property values, leading to greater demand for flexible financing. In contrast, smaller markets might see different lending dynamics.
At Clover Mortgage, we start with a free, no-obligation consultation to understand your unique needs and goals. This step allows us to match you with the best private mortgage options available.
Our experienced brokers work with many private lenders, creating a tailored approach to secure competitive rates and favorable terms.
From navigating documentation to finalizing the loan, we offer end-to-end assistance, ensuring a seamless process for all clients
Our team has years of experience in the Canadian mortgage industry, helping borrowers achieve their financial goals, even in challenging circumstances.
We maintain relationships with top private mortgage lenders in Ontario and Alberta, giving our clients access to a wide variety of loan products.
At Clover Mortgage, we prioritize transparency. Borrowers receive detailed explanations of all loan terms, fees, and potential risks.
Your needs come first. We focus on building a personal relationship with our clients, ensuring trust and long-term satisfaction.
A private money loan is a type of financing provided by private lenders rather than traditional financial institutions. These loans are often used by borrowers who may not meet the strict criteria of banks or credit unions. Private money loans focus on the value of the property and the borrower’s equity, offering more flexibility but often at higher risk.
The borrower pays various costs, including:
A non-arm's length transaction refers to a deal between parties who have a pre-existing relationship, such as family members or close associates. Private money lenders often scrutinize these transactions more closely to ensure they are fair and comply with lending regulations.
No, interest rates for private loans are not typically lower than those for traditional loans. Instead, they are often higher due to the more risk taken on by private lenders. However, the trade-off is faster approval times and more flexible terms.
The lending terms for private loans are usually short, ranging from 1 to 3 years. They may include:
Yes, obtaining a private loan from a family member is possible and is often considered a non-arm's length transaction. While this arrangement might offer more flexibility, it’s essential to formalize the loan with clear terms to avoid potential disputes and ensure compliance with legal requirements.
Private loans are seen as higher risk because:
Private loans are ideal for borrowers who need fast, flexible financing or who cannot qualify for traditional loans. However, the more risk and higher costs associated with these loans mean they are not always the best choice for long-term or low-risk borrowers. Consulting with an
