If you’re finding it difficult to get approved for a traditional mortgage, you’re not alone. Many people with non-traditional incomes, credit issues, or other unique financial situations face roadblocks when securing a mortgage from banks or credit unions. Luckily, private mortgages offer a more flexible and fast solution for a first or second mortgage if you want to consolidate a high-interest credit card and do not want to pay out your first mortgage with a traditional lender. Getting approved for a private mortgage is very simple if you have equity in your home. You don’t need credit or income.

At Sunlite Mortgage, we understand that life doesn’t always fit into the boxes that traditional lenders check. That’s why we specialize in private mortgages, offering fast approval processes based on the equity in your home—not your credit score or income. If you’re ready to take the next step, here’s how to get approved for a private mortgage.

Step 1: Work with a Mortgage Broker

Working with a mortgage broker is the first step to getting approved for a private mortgage. Private mortgages are only available through licensed brokers with access to private lenders. Your mortgage broker will be your guide, helping you understand the process and connecting you with the right lender for your needs.

Sunlite Mortgage’s brokers are trained and experienced in private mortgage financing, ensuring you get the best solution for your financial situation.

Step 2: Understand the Eligibility Criteria

Private lenders don’t follow the same strict criteria as banks or traditional lenders. Instead of focusing on the 5 C’s of credit, private lenders are primarily concerned with the equity in your property. Here’s what you need to qualify:

• Equity in your home: The more equity you have, the better. You’ll need at least 20% equity in your home for refinancing. If you’re purchasing a property, you’ll need a minimum 20% down payment.
• Property appraisal: Private lenders require an appraisal of your property conducted by an appraiser on their approved list. This helps determine the current market value of the property.
• Income documents: Though not always required, private lenders offering lower rates now ask for income documents from all applicants. This is especially true if you’re self-employed or have irregular income.

Step 3: Gather the Necessary Documentation

To streamline the approval process, having your documentation in order is important. Here’s what you’ll typically need to provide:

• Proof of equity or down payment: If you’re refinancing, this is your home’s equity. If you’re purchasing, you’ll need proof of your down payment.
• Property appraisal: As mentioned earlier, you’ll need to get an approved appraisal of your property. Your mortgage broker can help coordinate this with a lender-approved appraiser.
• Income documents: While some private lenders are flexible with income verification, providing income documentation may help you secure a lower interest rate. This is becoming more common even for those with non-traditional or irregular income.
• Identification and personal information: Standard ID and personal information will be required, including proof of residency if you’re a newcomer to Canada.

Step 4: Fast Approval Process

One of the most significant advantages of a private mortgage, whether you are looking for a first mortgage or a second mortgage, is the speed of the approval process. While traditional lenders may take weeks to review your application, private lenders can approve your mortgage in as little as 24 hours.

At Sunlite Mortgage, we work with a network of private lenders ready to review your application quickly. Once all the necessary documents are provided, you could have your mortgage closed in just a few days. This makes private mortgages ideal for those who need fast access to funds.

Step 5: Finalizing Your Private Mortgage

Once you’ve been approved, your mortgage broker will help you finalize the terms and conditions of your mortgage. Because private mortgages are typically short-term (ranging from 6 months to three years), it’s essential to understand the terms, including:

• Interest rates: Private mortgage rates are higher than traditional mortgages but offer flexibility for those with unique financial needs. Rates typically range from 4.99% to 15%, depending on the lender and your financial situation.
• Amortization: Some private mortgages offer amortization periods of up to 40 years or interest-only payments, which can keep monthly payments low.
• Fees: As a borrower, you will be responsible for paying all fees, including lender fees, broker fees, and legal fees. In addition to paying the lender’s legal fees, you will also need to seek independent legal advice (ILA) from a lawyer of your choice, whose fee you will also be required to pay.

Who Should Consider a Private Mortgage?

Private mortgages are an excellent option for people who face challenges qualifying for traditional financing. You might want to consider a private mortgage if:

• You have credit issues that prevent you from getting approved by a bank.
• You’re self-employed with non-traditional or irregular income.
• You need fast financing for a property purchase or debt consolidation.
• You’ve recently moved to Canada and don’t yet have an established credit history.

Next Steps: Get Approved for a Private Mortgage Today

If you’re ready to move forward with a private mortgage, Sunlite Mortgage is here to help. Our private mortgage experts can guide you through the process and approve you in less than 24 hours. We offer fast, flexible financing solutions tailored to your needs.

Ready to get started?
Talk to a Sunlite Mortgage private mortgage expert today and find the right solution. Apply online now and get a no-obligation quote!