Private lending has become an increasingly popular option for Alberta homeowners and investors who need financing outside of traditional bank channels. While it’s not for everyone, there are certain situations where residential private lending can be a smart solution.
- You’ve Been Turned Down by a Bank
- If you’ve been denied by a traditional lender due to credit issues, self-employment, or lack of income history, a private lender may still be willing to work with you. Private lenders typically focus on the value of the property, not just your credit score.
- You Need Short-Term Financing
- Private lending can be ideal for bridge loans, renovations, or other short-term needs. These loans often have shorter terms—usually 12 to 24 months—giving you the flexibility to complete a project or stabilize your finances before refinancing.
- You’re Investing in Real Estate
- Whether you’re flipping a house or acquiring a rental property, timing matters. Private lending can help you act quickly on a deal without waiting for lengthy bank approvals.
- You Own Equity-Rich Property
- If you have substantial equity in your home, you may be able to access funds through a private mortgage even if your income or credit wouldn’t qualify with a traditional lender.
- You Value Speed and Flexibility
- Private lenders can often fund deals within days. If time is critical—like saving a deal from collapsing—private lending may be the right tool.
Private lending isn’t the cheapest option, but when used strategically, it can help you solve problems, bridge gaps, and move forward with your goals.
At DMS, we help Albertans discover the dependable difference.
Learn more at dependablemortgage.ca
