Best Private Mortgage Lenders in Alberta for 2021

Private Mortgage Lenders in Alberta

Are you looking for a quick mortgage? You must know well enough by now that getting a quick mortgage from a bank is probably going to be a difficult task, especially if you have a bad credit score.

However, private lenders in Alberta specialize in providing quick mortgages with flexible terms.

Whether you’re looking for an alternative for your bank or credit union, private lenders in Alberta will not disappoint you.

In this article, we will talk about what private lenders are, how private lending works and highlight the best private mortgage lenders in Alberta, Canada.

Who are  Private Mortgage Lenders?

Private mortgage lenders have established lending companies or individuals that lend money to businesses or individuals.

Also, private lenders fill the gap when banks and other traditional lending institutions say no.

But the loan is mostly not insured by any federal financial institution, so that they may charge higher rates of interest than government-backed loans.

In most cases, private lenders work with people who have bad credit, money problems, or those looking for quick loans.

Private loans tend to be more flexible than traditional bank and government-backed loans. This flexibility comes in handy when you have problems meeting the strict requirements of banks.

How Do Private Mortgage Lending Work?

Accordingly, private lenders function similarly to traditional lenders. You must submit an application, wait for approval, and then get your loan if you are approved.

Your loan can be used to buy a house, renovate your existing house, pay for your children’s education, etc depending on what you need the money for. But you will have to repay the loan in installments with interest.

Therefore, the application process for any type of loan with a private lender is exactly the same as that for a traditional lender, except that it is significantly quicker and simpler.

What are the Pros and Cons of Private Mortgage Lending?

Private lending has some major pros and cons you need to consider. Some of the pros of private lenders include:

  • Easy access: Unlike banks, private lenders offer quick loans without a long application process.
  • No background/credit check: Private lenders can offer you a loan even if you have a poor credit score.
  • Flexible terms: Private lenders have flexible terms, unlike the strict terms of banks.

Some of the pros cons of private lenders include:

  • High-interest rates: You should expect to pay anything between 9-20% as an interest rate.
  • Short-term loans: Despite the high-interest rates, private lenders’ loans are short-term. Expect to pay cash loans within three months and mortgage loans within three years.

When to Use Private Mortgage Lenders in Alberta?

Private mortgage lenders should be your best option when:

  • Traditional lenders did not approve your loan application due to bad credit.
  • Looking to pay off credit card debt with high interest rates
  • There is an urgent need for cash, and you don’t have time to wait for long approval.
  • Looking to consolidate your debt.
  • Sudden job loss

What to Consider When Applying to a Private Mortgage Lender in Alberta?

There are four factors that determine private loan approval. These are interest rate, location, the term and the loan-to-value ratio (LTV).

Lenders want short-term, generous yield and interest rates when they loan money for a private mortgage.

In general, private lenders don’t want to extend credit beyond 12 months, but occasionally, they might extend credit for a more extended period.

If you are looking for a private mortgage over 12 months, you will likely need to seek out a private lender who specializes in long-term mortgages.

Private lenders place a lot of emphasis on location. Therefore, before applying for a private mortgage, you should consider your location.

Also, there’s a strong reason that most ordinary folks hesitate when applying for mortgage loans.

It’s not because housing prices are increasing (or decreasing) but the interest rate, loan-to-value (LTV) and pre-installments that’ll likely complicate their financial situation.

That’s why you should inquire about the private mortgage rates first, then figure out if this structure suits your situation.

Best Private Mortgage Lenders in Alberta

Have you been searching for a private lender in Alberta for some time now, but you haven’t been able to find one that fits your criteria?

Finding a lender can be a challenge because there are many lenders to choose from, and each one of them will claim to offer top-notch services.

However, among these private lending opportunities, several big names stand out from the crowd.

The following list contains the best private lenders in Alberta that you should consider working with:

1. First Foundation

First Foundation offers private money lending solutions to individuals looking for the opportunity to improve their cash flow in a safe, secure, and stress-free manner.

They take the time to understand their customer’s financial situation and provide them with a complete approach to their financial plan.

First Foundation’s mission is to help Canadians in their time of need in a manner that ensures their financial security in the future.

Therefore, whatever your financial needs may be, the team at First Foundation is available to help you achieve your goals.

Below is an illustration of First Foundation’s fixed and variable interest rates.

Fixed-Rate Variable (0.99%)
1 Year Fixed          1.82%

2 Year Fixed          1.52%

3 Year Fixed          1.52%

4 Year Fixed          1.74%

5 Year Fixed          1.74%

7 Year Fixed          2.44%

10 Year Fixed        2.69%

HELOC                   2.95%

Prime Rate             2.45%

5 Yr Bond               1.09%

Stress Test Rate     5.25%

 

 

Check it out

2. Axiom Mortgage Solutions

Axiom Mortgage Solutions is one of the leading and reliable private lenders based in Alberta. It has been providing personalized and professional services to its clients for the last 20 years.

What is more appealing with this type of mortgage is that they provide all kinds of loans, even for companies or self-employed people.

They are also transparent on their terms and conditions of delivering their services, which lets you know about the loan details before signing any agreements on getting a mortgage.

Additionally, they offer all kinds of loans with convenient terms at competitive rates for their valuable clients.

The following are Axiom Mortgage Solutions current interest rates:

Terms   Rates
1 Year 2.29%
2 Years 2.24%
3 Years 2.19%
4 Years 2.24%
5 Years 2.19%
7 Years 2.99%
10 Years 3.25%
VIRM 2.05%

 

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3. Alpine Credits

Over five decades, Alpine Credits has helped tens of thousands of Canadians improve their financial situation through personal loans.

Due to their many years of experience, Alpine Credits has built up a reputation for world-class service and expert advice to ensure that all applicants are fully informed of the entire process.

Also, Alpine Credits pride themselves on offering the best financing terms around and will never judge you based on your credit score alone.

Many people in Alberta turn to Alpine Credits when banks reject their loan applications. Alpine Credits interest rates range from 5.75% to 17.2%.

Check it out

4. Private Lender Inc.

Private Lender Inc. is one of Canada’s leading direct lenders to residential and commercial real estate.

It is a Canadian firm that was created to provide alternative lending solutions for real estate, construction and businesses of all sizes.

Private Lender Inc. provides short-term financing solutions to individuals that didn’t qualify for bank loans.

Furthermore, Private Lender Inc. has a competitive interest rate of 4.99%, and loans are typically approved within 24 hours.

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5. Calvert Home Mortgage Investment Corporation

Calvert Home Mortgage Investment Corporation is a network of mortgage professionals working together to provide solutions for individuals, families and business owners.

Since its inception, the company has built a solid foundation of trust and a commitment to helping its clients establish a firm financial foundation.

Calvert Home Mortgage Investment Corporation has many years of experience in the mortgage industry, and their interest rates range from 7.9% to 15.50%.

Whether you are buying your first home, refinancing an existing mortgage, or building wealth through investing in real estate, Calvert Home Mortgage is always ready to help.

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6. Amansad Financial Services Inc

Amansad Financial Services Inc. (AFS Inc.) has taken mortgage lending to the next level.

The firm entered into the private lending market to assist with funding any type of real estate venture that you may be involved in or interested in.

Therefore, Amansad Financial Services Inc. can help you make the most out of your real estate investment by providing you with fast and easy access to a private loan.

An Amansad interest rate will depend primarily on the type of property, the size of the mortgage, its location, and whether it is the first or second mortgage.

Here are some of the key features of Amansad Financial Services Inc.:

  • Inquiry for credit does not occur.
  • Customer service that is fast, reliable, and friendly
  • Immediate response
  • Home equity and property valuation are the primary criteria for private mortgages.
  • For mortgages with bad credit, equity and property are the most important factors.
  • The traditional and semi-traditional options are available as well
  • A secured asset loan based on equity

Check it out

Tips on Choosing a Private Lender in Alberta

It’s not just enough to know the best private mortgage lenders in Canada. It’s essential to understand how to approach them. Below are proven tips on choosing private lenders in Alberta:

Be Aware of the Lending Markets

Many private lenders are offering similar types of lending services in Alberta. Therefore, it’s essential to know the best options.

Go for a Direct Private Lender

Using a direct lender is cost-effective to use a broker when trying to take a private loan in Alberta.

There are several advantages of using direct private lenders. Among others, they are fast and cost-efficient because the process is done directly between borrower and lender.

Also, your loan will be approved faster, and you won’t have to pay a broker fee if you choose a direct lender.

Check and Compare Rates

Before choosing a private lender in Alberta, it is essential to test out several lenders through rate comparison to find one that best suits your situation.

However, you don’t have to worry about comparing different quotes as I have done the hard job for you above.

By comparing the above private lenders and their rates, you will choose a private lender that offers a competitive rate.

Conclusion

Finding a private lender in Alberta may be confusing, but not anymore with this comprehensive guide.

While private lenders can be helpful, it’s essential to know the implications of taking a private loan.

Not only are private lenders’ interest rates high, but they offer short-term loans, unlike traditional lenders. This explains why a private loan is not for everyone.

Hopefully, you can now determine whether a private loan is right for you and how to find the right private lender in Alberta.

With the above review of the top private lenders in Alberta, you don’t have to stress yourself visiting different lenders to find the best deal.

But if you need further help choosing the best private lender in Alberta, contact us at (403) 804 7314 or email us at KenMorris@royalLepage.ca for a personalized solution.

FAQs

Can anyone be a private lender?

Yes. A Private lender can be anyone who has the capital to invest and is looking for a good return.

Are money lenders safe?

Yes. You can trust them with the same consumer protections, transparency, and empowerment you see with banks and other financial institutions.

How much do private money lenders charge?

Private lenders typically charge higher interest rates than traditional lenders, but the rates vary according to each private lender.

Do realtors and lenders work together?

Yes. In the transaction process, realtors work with lenders to protect the interest of the borrower.

Our mission at the Ken Morris Team is to ensure you get the best deal on your private loan and real estate. Contact us at (403) 804 7314 or email us at KenMorris@royalLepage.ca for a personalized solution.

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