While private mortgage lenders have never been the leading providers of loans to Canadians, they have seen an increase in demand in recent years. It seems many Canadians are seeking alternatives to the banks; this article will explore some of the possible reasons behind this phenomenon as well as the benefits of doing so.
Changes in the Marketplace Lead Canadians to Private Mortgage Lenders
The real estate market is an ever-changing and evolving entity. In Canada, a number of major cities are experiencing rising interest rates and affordability crisis. In some of these cases, individuals that are in need of an emergency sum of money would rather turn to a private mortgage lender who offers loans for other larger investments in addition to homes.
Mortgage Refusal From the Bank
The most significant reason for Canadians to turn to alternative mortgage lenders is when the bank denies their loan. Individuals with poor credit, self-employed business owners or families that are new to Canada are often turned away by the bank, and a private mortgage lender caters to the needs of these individuals.
Mortgage Stress Tests
Laws and regulations that require mortgage approvals based on higher interest rates have led many Canadians to choose a private mortgage lender for a mortgage renewal, second home mortgage and other services. Private mortgage lenders are not under the same regulations as the banks, and as such, when individuals are no longer approved for a mortgage under these stricter stress tests, they turn to an alternative whereby they are more likely to be approved.
When it comes to mortgages, a private mortgage lender is the best alternative to the bank. Whether you need a significant loan for a home renovation, debt consolidation services, or you’re a first-time home buyer, you can trust a private mortgage lender to provide you with the loan you need and unparalleled service.
Whether you’re looking to borrow or invest, Alta West Capital can help. We offer a number of lending solutions for first time buyers, individuals and families that are new to Canada, self-employed business owners, real estate investors and more. Alta West loans are fast and flexible to fit your needs. Visit our website to apply online or contact us directly. Call (403) 254-9075 or email email@example.com.