Alternative lending mortgage in Ontario refers to mortgage financing options outside of the traditional banking system. This type of lending often caters to borrowers who may not meet the criteria for a conventional mortgage, such as those with poor credit, low income, or self-employed individuals.
Examples of alternative lending mortgage options in Ontario include:
- Private Lenders: These are individuals or firms that lend their own money to borrowers. They may offer more flexible terms and higher interest rates than traditional banks.
- Hard Money Lenders: Similar to private lenders, these are typically individuals or firms that use their own funds to finance mortgages. They are often more willing to lend to borrowers with poor credit or those who can’t qualify for a conventional mortgage.
- Peer-to-Peer Lenders: This type of alternative lending involves matching borrowers with individual investors who are willing to provide the funds for the mortgage. The interest rate and terms are determined by the lender.
It’s important to note that alternative lending options may come with higher interest rates and fees compared to traditional mortgage