Renewing with a Private or a Conventional Lender
Your mortgage being up for renewal provides a great opportunity to discuss rates and options with your current lender. A lender has incentive to keep you as a client at renewal time. They may contact you prior to your renewal with offers and promotions. This is great! If you do your homework on current product trends and rate markets, it puts you in a better negotiating position.
This research may prove too time consuming for many busy Canadians. Don’t worry! Your Mortgage Centre specialist is already up to date on the most current mortgage products. We have access to mortgage-only lenders that may not be available to you.
A Private Lending Overview
Private Lenders provide financing for interest-only loans and are relatively short in length. A loan from a private lender occurs primarily because of the following:
- Your credit rating isn’t as good as it could be
- The refinancing needs to be completed quickly
- A short-term loan is needed
- Renovations are needing to be done
- Income cannot be verified or confirmed, and this excludes you from obtaining a conventional loan
Keep in mind the interest rate with private lenders is going to be quite a bit higher and the loans only pay back the interest; not the principle!
The Mortgage Centre broker will provide you with all your options and even negotiate with your current lender on your behalf. It’s our goal to get you a competitive interest rate at renewal on a mortgage that has the features you want.