For every buyer, there is an appropriate lender. Banks and trust companies are not the only sources of funding for a mortgage. Read on to find out if a private mortgage is the right match for you.

At Aero Mortgages, we strive to make your borrowing experience as fast and easy as possible. With that in mind, we've compiled a list of the most commonly asked questions when shopping for a private mortgage. If you have other questions, email us and we will get you answers as soon as possible. When you're ready to apply for your mortgage, just click Apply Online Now! to start the no obligation, online application process.

1. What is a private mortgage?
2. How do private mortgages work?
3. How is the mortgage broker paid and what are the fees?
4. What is the interest on a private mortgage?
5. What are the risks?
6. What criteria does the broker look for in the borrower and the property?
7. How long does it take to process the mortgage application?

1. What is a private mortgage?

In a private mortgage, emphasis is on the value of the security, not the applicant's proof of ability to pay. This makes it appealing to people who feel they can afford repayments but cannot prove serviceability. For example, the tax returns of many businessmen may bear little or no resemblance to their real income and/or their ability to service a loan.

Although the mortgage is secured by equity in the property, the applicant's credit still must be acceptable. The property quality must be good.

2. How do private mortgages work?

A private mortgage works the same way as other types of mortgages.


3. How is the mortgage broker paid and what are the fees?

The borrower pays all fees for private mortgages. Generally, a 50% deposit is required with the application while the remaining 50% is payable after the advance of funds.

4. What is the interest rate on a private mortgage?

The rates start at Canadian Bank Prime + 2%, or more.


5. What are the risks?

There are no appreciable risks to the borrower if the mortgage broker properly secures the mortgage.


6. What criteria does the broker look for in the borrower and the property?

The broker looks for good credit in the borrower, and good-quality real estate.


7. How long does it take to process the mortgage application?

   Private mortgage approvals take approximately one week from the time all pertinent information is received. Funding is usually available two weeks after approval.