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Private Mortgages

Alternative Financing for Real Estate is a Viable Option

With home prices rising rapidly, private lending has become increasingly popular in Ontario. A mortgage is considered to be a “private mortgage” where the lender is not a traditional entity like a bank, licensed insurance company, or pension fund. These institutions may decline individuals financing because they are non-residents, self-employed, do not meet credit criteria, or for a number of other reasons.

Why You Need a Lawyer

There are pros and cons to obtaining funding via private lending. A lawyer can help assess whether going the private lending route is best given your unique situation.

There are also important steps you should take once you have decided to give or receive a private loan.

First and foremost, your lawyer should review the loan contract before you sign it so that you understand the cost structure of the loan, other financial terms, and the risks involved. In addition, because private loan contracts are usually short-term, a lawyer can help assess your future plan once the loan term is over. Pre-payment penalties may apply if you exit the contract prematurely.  Finally, a lawyer will help to draft the necessary paperwork to make the mortgage enforceable and to ensure you that know exactly what you’re getting into.

Our lawyers understand the private lending process and will evaluate your unique situation to arrive at a solution that works for you.

What you need. When you need it. That’s the DiMinno Rizzi way.

Let us help you!

If you need any help, please feel free to email us and we’ll get in touch with you to determine if we can help you achieve your goals.

Info@drlawyers.ca

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