private mortgage edmontonPrivate Mortgage Options in Edmonton

Few places in the country have seen a steadier, stronger, more balanced market than Edmonton. However, the oil crisis has created a situation where a lot of home buyers, are now struggling to keep up with payments. This situation has also made it difficult to borrow more money to consolidate these debts. This untapped equity can be very useful to clients who are struggling with their finances, helping them to get out of their current situation. If you have been declined by your bank due to bad credit,  a private mortgage in Edmonton is the answer.

Our private mortgage options in Edmonton are considered a high risk product. There is little qualification requirements but higher interest rates are charged. These loans are usually a loan of last resort due to the cost in both terms and fees. They are however, some of the most important loans we do here in Edmonton.

For clients who are struggling to keep up, a private mortgage can buy you the time you need. It is imperative however, that there is an exit strategy, it is not a viable long term solution. We have both first and second mortgage options on the private side.

What Our Private Financing Options Can do for You?

  • Buying clients out of a foreclosure with their existing lender.
  • Private construction loans where a draw mortgage is difficult to find.
  • Second mortgages to tie a client over till they can refinance their first mortgage.
  • Buy you the time you need to sell your home if you are going into foreclosure.
  • Quick access to equity in your home, if timing is imperative.

If you are running into credit issues, we recommend our credit rehabilitation to get back on track as well. Keep your credit score high. this will help with future mortgages once you get out of your private financing.

At, before we do a private mortgage in Alberta or elsewhere we want to be sure that the client will be in a better situation after we arrange the loan for them, we don’t want to simply buy you time if there is no plan to change your situation. The best advice we can give you regarding private financing is to contact us before you get to a point where you need a private mortgage, your options will be much better.

 Private Loans are Not Just for Financial Difficulties

The reason private loans are necessary, is they fill a gap in the institutional options in the market. Banks have very specific lending guidelines that they must adhere to, meaning they are not always an option for one reason or another. Private mortgages fill this space with common sense short term loans. Here are just a few examples:

Debt Consolidation – Lenders do not get involved in default management, cleaning the debts up and consolidating the mortgage is a good way to get around this issue.

Tax Arrears – Banks do not allow you to consolidate income tax or property tax arrears.

Major Home Renovations – Some lenders have a hard time funding renovations in a manner that works for the client.

Needing Money Fast – Private loans can be funded very quickly unlike traditional bank mortgages.

One thing you will hear a lot from us when discussing private loans, is the term ‘exit strategy’. This is a plan you have for paying this mortgage off, and getting back to a more traditional form of home loan (prime or sub-prime). Private home loans are not a viable long term option.

So what would this strategy look like? Well it could be as simple as paying off your debts to make your situation more acceptable to a bank. It could be matter of buying you time until you are making more money or have money coming in. There is no straight forward template for this as everyone’s situation is different, however what doesn’t change is you must have an exit strategy.

Why are the Private Mortgage Rates so Much Higher?

Private lending is the most expensive loan options we offer. And obviously they are usually the most risky. First off, these rates are set by the lender. They take clients money and promise them a certain return on their investment. So in simple terms, the market sets the rates.

Investors are looking for a higher return on their money than GIC’s and mutual funds. MIC’s (Mortgage Investment Corps) offer decent returns with a nominal level of risk. Are private loans risky by their nature? Absolutely, however with the amount of equity required to be in the property, it’s considered a moderate risk based on the expected return.


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