Toronto Blog Post: What Is A Private Mortgage?
Many people aren't familiar with this type of mortgage. The basic definition of a private mortgage is a mortgage contract in which the lender is not a registered financial institution but may be a friend, family member or an individual investor. Why wouldn't a financial institution want to lend? Strict guidelines. A bank in Toronto for example, follows strict guildlines for lending that limit their ability to finance certain scenarios and borrower profiles. That's where private mortgages are used to meet those unique needs...More
