Looking at mortgage options but don’t qualify with a bank? Private lenders can help. But before you choose one, it’s important to compare their rates carefully. Here’s how to do it — in simple words.
Start by making a list of lenders. You can find them online or ask a mortgage broker to help. A broker knows many private mortgage lenders and can save you time.
Next, look at more than just the interest rate. Many people focus only on the numbers, but there’s more to it. Check the fees, penalties, and terms, too. Some private lenders charge setup fees or extra costs if you pay off the loan early.
Ask for a written quote from each lender. This helps you see everything clearly — the rate, the term, the fees. When you have quotes side by side, it’s easier to compare.
Let’s say you want a longer loan. Ask each lender about their 5 year fixed mortgage rates in Ontario or your specific city. This gives you a stable rate and makes budgeting easier.
Also, make sure you’re comparing private mortgage lenders' rates in Ontario that apply to your situation. Rates can vary based on your credit, down payment, or property type.
Finally, ask questions. If something is unclear, speak up. A good lender or broker will explain things in simple words.Comparing private mortgage lenders' rates doesn’t have to be hard. Take your time, read the fine print, and don’t rush into anything. A little extra effort now can save you a lot of money later.