3 Smart Tips for Private Mortgage Loans in Montreal

• December 30, 2017

The popularity of private mortgage loans in Montreal is expected to rise, following the introduction of the new mortgage regulations. They are a nice option, not just for individuals in need of mortgages, but they may be entangled by poor credit, but also for people who might find it difficult to get approved by the banks, and by the mainstream financial institutions.
While considering private mortgage loans in Montreal, it is important to be smart, and here are a few tips to help you get by smoothly:

Negotiate the rates

One of the advantages of private mortgage loans, is that you have a chance to negotiate the rates with the lender. It is not as strict as the mainstream loans, and with this room, you can potentially sway the negotiations to suit you the most. However, don’t expect that such loans are interest-free, even if you were to get them from a family member.

Get everything in writing

To be successful with private mortgage loans in Montreal, proper and genuine documentation is necessary. It is imperative to have a written agreement, outlining what both parties anticipate, and if possible, a copy of the agreement should be deposited at an attorney’s office. Things may not be the same after several years, once the loan is disbursed, and in case of any disagreements or misunderstandings, the agreement can always be reverted to.

Discuss contingencies

Before agreeing to any Montreal private mortgage, both the lender and the borrower must be free to discuss various contingencies that may complicate the agreement. Such should include the measures to be taken in the event that the borrower defaults on the payments or becomes incapable of continuing to service the loan. Be sure to use the services of an attorney, and a tax repairer when discussing any contingency revolving around private mortgages.