Getting a mortgage from a bank or a non-bank lender has become a bit more challenging. With the recent introduction of new mortgage rules, lenders have had to tighten their qualifying guidelines.  The new mortgage rules have also impacted those who want to refinance their mortgage loan. And at renewal time, if you want to increase your existing loan, change your amortization or shop for a better rate, the new qualifying rules may have an impact as well.

However, banks or a non-bank mortgage lender are not the only options for a mortgage. In addition to some credit unions that have not changed all their lending guidelines, there is now a growing group of alternative or private lenders who are flexible and open to reviewing a variety of situations. While many home buyers and property investors consider private lenders a last resort, the new mortgage rules have created an opportunity for a variety of specialized lenders to enter the market.

Private lending is excellent for:

Many private lenders put more weight on the equity in a property, rather than on the work you do or on the credit challenges you may have. However, the downside can be higher interest rates and lending fees.

Smaller institutional lenders, however, are offering specialized lending with affordable interestrates, reasonable lending fees and flexible underwriting.

A few benefits of specialized lending:

While qualifying has become more challenging, there are still options. If  you’re renewing or want to refinance, or if you want to talk about the qualifying guidelines and how they affect you, call us today!