If you’re thinking about getting a private mortgage, you’re not alone. Many Canadians turn to private lenders when they don’t qualify for a traditional bank loan. But how do you know if you’re getting a good deal?Here’s how to compare private mortgage loan rates the smart and simple way.
First, understand what a private mortgage is. It’s a loan from a private lender, not a bank. These are great for people with bad credit, self-employment income, or urgent financing needs. But the interest rates can be higher.
The interest rate is important, but it’s not the only thing to look at. Ask about:
Even a slightly lower rate can cost more if fees are high.
When comparing private mortgage loan rates, make sure all offers are for the same loan amount and term. Don’t compare a 6-month interest-only loan with a 1-year loan that includes fees — that’s like comparing apples to oranges.
Always ask the lender or Mortgage Broker for a full breakdown of all costs. A trusted Mortgage Broker in Toronto can help you understand what’s fair in today’s market.
Don’t rush. Take time to review each offer carefully. Comparing private mortgage loan rates helps you avoid surprises and choose the option that’s right for your needs.