PRIVATE MORTGAGES AND 2ND MORTGAGES
Bank Said NO?
You may still have options.
Traditional banks have strict lending requirements, but private lenders can offer more flexibility.
Private mortgages use the equity in your property rather than relying primarily on income and credit scores. They can help with debt consolidation, tax arrears, foreclosure, unexpected expenses and other difficult financial situations.
HERE IS AN EXAMPLE OF A PRIVATE 1ST MORTGAGE, AND 2ND MORTGAGE WE RECENTLY COMPLETED
Example 1 — Private First Mortgage
Property Value: $600,000
Outstanding Debts:
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Existing Mortgage: $320,000
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Credit Cards: $25,000
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Property Tax Arrears: $20,000
Total Debt: $365,000
The Solution:
Replace the existing mortgage with a new private mortgage, paying off the outstanding debts.
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New Private Mortgage: $372,449
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Interest Rate: 9.75%
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Brokerage Fee: 2% (included)
New Monthly Payment: $3,026
One mortgage payment, outstanding debts cleared, and an opportunity to rebuild financially.
Example 2 — Private Second Mortgage
Property Value: $600,000
Existing Mortgage: $300,000
The homeowner has $60,000 in credit card debt but doesn't want to give up their existing low-interest first mortgage.
The Solution:
Arrange a private second mortgage while leaving the existing first mortgage untouched.
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New Second Mortgage: $61,224
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Interest Rate: 11.75%
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Brokerage Fee: 2% (included)
Second Mortgage Payment: $599/month
The homeowner keeps their existing first mortgage and receives the funds needed to consolidate their credit cards.
The second mortgage payment is in addition to the existing first mortgage payment.
Let's Discuss Your Options
Chris Friesen — Mortgage Professional
Mainstream Mortgages | Dominion Lending Centres
Email: chris@chris-friesen.com
Hypothetical examples for illustration only. Payments are interest-only and do not reduce principal. Brokerage fees are financed into the mortgage. Additional lender fees, legal expenses, appraisal costs and mortgage penalties may apply. Rates and financing are subject to approval, property equity and lender requirements. Private mortgage financing is generally intended as a short-term solution and may cost more than traditional financing.
