An Alternative, Short-Term Strategy

Private Mortgage Lending

Private Mortgage

For different life situations, private lenders help with access to short-term, possible interest only mortgage loans. When emergencies happen, your bank denies mortgage last minute or you need access to cash urgently, private lenders can process your mortgage within 24 hours* and ensure your immediate need is met, helping you through.  

Square Capital works to offer innovative mortgage solutions working with private lenders to provide borrowers with fast 24-hour mortgage funding options (*subject to terms and conditions).

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Mortgage Solutions in Toronto, GTA and across Ontario

Fast, Flexible, regardless of Credit

Private Mortgage

When homeowners cannot qualify for a mortgage through a bank, private mortgages may be an alternative. Since private mortgage lenders will secure a mortgage against a home’s equity, other factors may not be taken into consideration.  This is because these lenders understand that situations exist such as quick turnaround for financing, bad credit, stated income, and non-conventional properties.

Private lenders usually charge a higher interest rate and fees than a bank, given the higher level of risk, however, this option may reduce interest costs over time compared to an interest rate on a credit card.

Typically, private mortgages are shorter-term products and only require the interest portion to be repaid. There are private lenders that provide private mortgages with the amortization required to repay the principal portion of the mortgage.  Private lenders evaluate risk differently than traditional lenders and will consider the borrower’s ability to repay which is beneficial to self-employed and people with bad credit. Private lenders can also provide debt consolidation options through second mortgages.

Advantages of Private Mortgages

  • Fast turnaround time – Private mortgage lenders can assess your application and have the funds to you quickly usually within 24 hours, subject to terms and conditions.
  • Credit Repair – When prime lenders decline home buyers and homeowners based on their bad credit, borrowers can leverage private mortgages to improve their financial health.
  • Interest only payments – Some private mortgages only require the interest portion to be repaid.
  • Short-term options – Private mortgages are usually utilized for quick or emergency funding for shorter periods of time.
  • Credit worthiness – Private lenders are willing to assess lending based on the property location, property value and amount of mortgage (among other factors), instead of your bad credit, poor credit or no credit position.

Disadvantages of Private Mortgages

  • Higher interest rates – As private lenders are taking a higher risk, home buyers and homeowners will pay higher rates, to account for the increased risk.
  • More fees – Typically, private lenders charge lender fees to mitigate the higher risk based on the complexity of the mortgage.

Private Mortgage Options

Private mortgages can be used for many scenarios including;

  • Second Mortgage – An alternative option for homeowners to access their home’s value to obtain a loan for investment, without paying penalties. While interest rates for second mortgages tend to be higher, it may be a viable option for investing. Speak to a mortgage broker to understand the costs associated with a second mortgage.
  • Quick Closing, Fast Mortgage – When you need to close your mortgage quickly, we can help you fund fast. From mortgage refinancing to second mortgages, we strive to get funds to you in 24-hours. There are definitely life events where borrowers need access to cash quickly for emergencies or unplanned expenses. Or when your bank denies your mortgage at the last minute – yes this can really happen. Banks often deny mortgages for reasons such as an appraisal coming in lower than your purchase price or your mortgage application details are inconsistent. We offer innovative mortgage solutions to residential and commercial mortgages.
  • Bad Credit Mortgage – Buying a house or paying off high-interest debts, a bad credit mortgage can help repair poor credit scores. Getting a mortgage and consistently paying it down or paying off your high-interest debts helps rebuild your credit score. Mortgage Lenders know this and will usually offer a private mortgage. Private mortgages usually charge a higher interest rate and more fees, however, the goal is to help borrowers repair their credit and move into a lower rate mortgage, quickly. 
  • Self-Employed Mortgage – At Square Capital Mortgage Brokerage, we understand people who are self-employed because we are also business owners and want to offer mortgage and financial solutions to fellow entrepreneurs. Bad credit and declared income are unexpected obstacles to self-employment and getting qualified for self-employed mortgages and other types of financing. In addition to banks, we are partners with private lenders who offer alternative mortgage options to help you with a new purchase, debt consolidation (that helps improve your bad credit score), and even renovations.
  • Debt Consolidation Mortgage – We understand each case is unique and there are many factors to consider including homeowners with bad credit or low income. Unlike traditional lenders like banks and financial institutions, with very strict lending terms, Square Capital works with over 50 lenders, including private lenders, to find the right solution for our clients. Our expert mortgage brokers and agents will help to find solutions to lower your monthly payment and reduce or stop the interest on your debt. Lower monthly payments every month reduces the chances of financial default while improving your credit and managing your money wisely.
  • Poor Credit Mortgage – Homeowners that have built up home equity over time will be able to leverage it to pay off high-interest debts. When paying down high-interest debt, poor credit borrowers will start to repair their credit scores. While private lenders tend to charge higher interest rates and fees for the added risk of the mortgage, they usually specialize in shorter-term mortgages. The lender is hoping the mortgage loan will help improve poor credit scores so borrowers will be able to qualify for more traditional bank mortgages at lower rates.

Questions about Private Mortgages

Are you ready to get your mortgage?

Contact us today to get a free quote. We will help you understand the current market conditions affecting the mortgage market! Prequalify without affecting your credit!

Innovative Mortgage Solutions

Simple and Quick Mortgage Loan Approvals

Bad Credit

Life doesn’t always go as planned. We help get your finances in order while boosting your credit score.

Debt Consolidation

Put mortgage money back into your pocket, regardless of bad credit. We offer consolidation loans with prime and private lenders.

Self-Employed

We know it’s complicated proving income earned and work with lenders who understand this.

First-time Homebuyers

With access to many options, we help navigate and secure suitable mortgages possibilities

Our Mission

Why People Choose Us

Fast/Quick Mortgage

Have your mortgage within 24 hrs, subject to terms and conditions

Best Rates, Flex Terms

Competitive mortgage loan rates with flexible 3 to 12-month terms

Rebuild Credit

Boost your credit within 90 to 120 days

Custom Payment Plan

Partial or zero payments for up to 12 months

Related Services Offered

Financing Options

Home Equity Line of Credit (HELOC)

Access your home’s equity to use as much as you need and only pay the interest.

Read More

REVERSE MORTGAGE

Canadian homeowners 55 and older can access up to 55% of their home’s value.

Read More

Debt Consolidation Mortgage

Put more money back into your pocket, regardless of bad or poor credit.

Read More

Second Mortgage

An alternative option for homeowners to access their home’s value to consolidate high-interest debt, without paying penalties.

Read More

Other financing options

Reverse Mortgage

An option available to homeowners 55 and older is reverse mortgages that provide access to the home’s equity without having to sell. Reverse mortgages allow homeowners to borrow up to 55% of the value of the home. The concept of this mortgage is essentially a reverse loan that means there are no payments required. Payments will be made either in monthly payments or in a lump sum payment to homeowners. Homeowners will pay the reverse mortgage loan when they move, sell or the last borrower dies. Typically, the interest rate is higher, and there are fees additional associated with reverse mortgages.

Budget Planning and Expense Tracking

While products like debt consolidation mortgages, HELOCs, and private mortgages are tools to financial freedom, managing debt is the key to success. Practicing better money management in daily life like budgeting, monitoring spending, and saving. There are many free online apps that can support homeowners to achieve financial freedom and get better at managing money.

Get Started with a Private Mortgage

To learn more about private mortgage, contact Square Capital Mortgage Brokerage. We understand each case is unique and there are many factors to consider . Unlike traditional lenders like banks and financial institutions, with very strict lending terms, Square Capital works with over 50 lenders, including private lenders, to find the right solution for our clients. Our expert mortgage brokers and agents will help to find solutions to lower your monthly payment and reduce or stop the interest on your debt. Lower monthly payments every month reduces the chances of financial default while improving your credit and managing your money wisely.

Questions? We’ll Put You On A Right Path!

Contact us today to get a free quote. We will help you understand the current market conditions affecting the mortgage market! Prequalify without affecting your credit!

Mortgage Application

Once the form is submitted, we will contact you to discuss your needs and to answer any of your questions.