Getting a mortgage in Peterborough isn't always as simple as walking into a bank and signing papers. For many borrowers—especially those facing credit challenges, unconventional income sources, or time-sensitive deals—traditional lenders may not be a viable option. That’s where private mortgage lenders come in.

As a local expert, Mike Cara, Mortgage Broker in Peterborough, works with both traditional and private lenders, helping clients understand when private financing is a smart move and when it should be approached with caution. If you’ve been turned down by a bank or need fast access to equity, here’s what you should know.

What Is a Private Mortgage Lender?

Unlike banks or credit unions, private lenders are individuals or groups who lend money secured against real estate. These can include:

• Private investors

• Mortgage investment corporations (MICs)

• Specialized private lending firms

Private lenders focus primarily on the value of the property and the equity available, rather than on income verification or credit scores. This makes them an option for those who don’t fit into the strict lending boxes that traditional institutions use.

Why Consider a Private Mortgage?

Here are some common reasons people in Peterborough might consider private financing through a broker like Mike Cara:

1. The bank has turned you down

If your credit score is low, your income isn’t easily verified (familiar with self-employment), or you’ve had past financial issues, traditional lenders may say no. A private lender may still be able to help.

2. You Need Funds Quickly

Banks can take weeks to process and approve a mortgage. If you’re facing a tight closing deadline or dealing with a time-sensitive situation—such as stopping a power of sale—private lenders can often approve and fund in just a few days.

3. You Have Equity But Can’t Refinance Traditionally

Many homeowners in Peterborough have built up significant equity in their homes. Even if your income or credit has taken a hit, a private mortgage can allow you to access that equity for renovations, debt consolidation, or emergencies.

4. You Need Short-Term or Bridge Financing

If you’re planning to refinance or sell your home within a year or two, a private mortgage can act as a bridge. Mike Cara regularly helps clients in transition secure short-term loans with clear exit strategies.

5. The Property Doesn’t Meet Traditional Lender Guidelines

Rural homes, fixer-uppers, or non-conventional properties can be tough to finance with banks. Private lenders are often more flexible when it comes to unique or unconventional real estate.

Pros of Private Mortgages

• Flexible qualification criteria

• Quick approval and funding

• Open to a wider variety of property types

• Available even with poor credit or irregular income

What Are the Drawbacks?

Before moving forward, it’s essential to understand the potential downsides of private lending:

Higher Costs

Private mortgages typically carry higher interest rates—often ranging from 10% to 12%—plus additional fees from the lender and broker.

Shorter Terms

Most private mortgages are for terms ranging from 6 months to 3 years. You’ll need a clear exit plan (such as refinancing, selling, or improving your financial position) when the term ends.

Less Regulatory Oversight

Private lenders aren’t regulated the same way banks are, which is why working with a licensed, experienced mortgage broker like Mike Cara is essential. He ensures the lender is reputable, the deal is fair, and all terms are transparent.

What Does a Private Mortgage Look Like in Peterborough?

While every situation is unique, here are some general guidelines:

Mike Cara works closely with each client to compare private mortgage options and calculate total cost, not just the interest rate, ensuring you fully understand what you’re signing up for.

When a Private Mortgage Makes Sense in Peterborough

You may want to explore private financing if:

• Traditional lenders have declined you

• Your credit score or income documentation is weak

• You need fast access to funds

• You’re looking to consolidate high-interest debt

• You’re investing in renovations to increase property value

• You need a short-term loan to bridge a real estate transaction

• Your property is rural, unique, or under renovation

Mike Cara can assess your specific situation and advise you on whether private lending is your best option—or if there are better alternatives you haven’t considered.

When It Might Not Be Right

Private lending isn't for everyone. You might want to avoid it if:

• You can qualify for traditional financing with better rates

• You don’t have enough equity to support the loan

• You don’t have a realistic exit strategy

• The monthly payments would cause financial strain

• The lender isn’t transparent or reputable

Mike Cara always takes a client-first approach, helping you weigh all your options and guiding you only toward choices that make financial sense.

Work With a Trusted Mortgage Broker in Peterborough

Private mortgages can be a lifeline—but they can also be a liability if not structured properly. That’s why working with an experienced professional is crucial.

As a licensed mortgage broker in Peterborough, Mike Cara has access to a wide network of trusted private lenders. He’ll help you:

• Understand your options

• Review all terms and fees

• Avoid shady lenders or hidden costs

• Secure a deal that fits your situation and goals

• Build a strategy to transition back to traditional financing when possible

Final Thoughts

Private mortgage lending isn’t a last resort—it’s a strategic tool for the right borrower at the right time. Whether you’re in a tough financial spot or need a short-term solution while you regroup, private financing through a trusted broker like Mike Cara could be your best move.

📞 Need advice or a free consultation? Contact Mike Cara – Mortgage Broker in Peterborough today and explore your options with confidence.