Toronto, OntarioPrivate Lending

What is a private mortgage? Regardless of whether you are an investor or borrower, a private lending legal professional is necessary to arrange the transaction.
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What is a private mortgage?

A private mortgage is a contract between a lender and a borrower in which the lender is not a registered financial institution. A lender may be a friend, family member or an individual investor. It is not necessary to have a bank or a financial institution lend money. In fact, any person can lend secured funds through a mortgage on property.
A borrower may require a private mortgage for financing under certain circumstances, including:

Home renovations
Home When you cannot provide income confirmation
Short term bridge financing'
Business expansion or real estate development
Investments and acquisitions
Debt consolidation or recovering from bankruptcy
Income tax, property, or mortgage arrears
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There are many benefits to the borrower and investor in a private mortgage. For investors, private mortgages are an attractive investment, which provides monthly income. In addition, mortgages are excellent negotiable instruments that can be assumed, renegotiated, and transferred as required. The investor is always protected by securing the mortgage on real property.
When borrowing from a private lender, their funding process significantly more quick and efficient. Private lenders may only require minimal information before proceeding to approve a private mortgage loan. This process conserves a great deal of time and energy for everyone involved. The shorter processing time and decreased documentary requirements, enable you to obtain funds efficiently.

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    Private mortgages are an excellent alternative when a bank financing proves challenging to obtain. A private mortgage should never be a long term strategy for a borrower, as the interest rates tend to be higher and do not always have the features and flexibility that institutional mortgages offer.