What Is Private Lending? And When Does It Make Sense? 💰🏡
Private lending is an alternative financing solution that’s growing in popularity—especially for borrowers who may not meet traditional bank requirements.
Instead of borrowing from a bank or credit union, you borrow from a private individual or company. This can offer more flexibility when your situation is unique—like being self-employed, going through a divorce, or needing short-term financing quickly.
When Private Lending Might Make Sense:
✅ You’re turned down by traditional lenders
✅ You have income that’s hard to document
âś… You need fast access to funds (for a purchase, renovation, or consolidation)
âś… You want a short-term loan while transitioning between properties
âś… You're dealing with credit challenges but have strong home equity
Things to Keep in Mind:
Private mortgages usually come with higher interest rates and shorter terms (typically 1–2 years)
They are often interest-only loans
You’ll need sufficient equity in your property
Private lending isn’t for everyone—but in the right situation, it can be a powerful tool to move you forward financially.
Want to explore whether a private mortgage is right for you?
https://www.dianebuchanan.ca
