Private mortgage loans have the disadvantage of being expensive. However, they provide the advantage of letting a property buyer maneuver in other ways. Depending on your situation, you may need an alternate lender for any of the following reasons: Your credit rating is poor (likely below 600), and you’ve been rejected by the banks and credit unions. You have unverifiable income, and can’t use a Notice of Assessment (NOA) to qualify for a traditional mortgage. See our page on self-employed mortgage options for more on this. You want to buy a unique property that traditional mortgage lenders won’t loan against (e.g. you want to buy a log cabin in a remote location). You need cash quickly to obtain the investment property you want (e.g. when buying mixed-use properties, time will be of the essence). Private lenders are more agile, and can get you funds within a few days, if necessary. You no longer qualify for a traditional mortgage on your pre-sale property that you purchased 2-3 years ago. Instead of losing your 15% to 20% deposit to the developer, you can fund the presale property with a private lender and sell the property immediately upon completion. If any of the above sound like your case, we encourage you to get in touch. We can help you determine if you need a private loan or not: