Over the past few years, it has become more difficult to obtain mortgages through traditional lenders like banks, registered loan or trust companies, or other traditional lending institutions. That has moved an increasing number of consumers into the private mortgage market, where mortgages are available from an individual, a corporate client or a group of clients, instead of from a traditional financial institution. Private mortgage lenders play an important role in Canada’s housing market. According to Statistics Canada, the value of residential mortgages by non-bank lenders reached $47.9 billion in 2020, a 36.5% year-over-year increase compared to 2019. Because private lenders do not accept deposits from the public, they are not federally or provincially regulated.  This makes it especially important that all of the legal aspects of a private mortgage are carried out correctly and legally, Without a mortgage broker involved, handling the legal requirements and documentation of a private mortgage can be an overwhelming task. One of our experienced lawyers can lead you through the process and ensure that your interests are protected.

Can’t My Real Estate Agent Handle my Private Mortgage Paperwork?

In conventional mortgages, it is often your real estate agent or mortgage broker who navigates the paperwork with you.  Whether the agent or broker is representing you, the lender, or both, can be murky. In a private mortgage, the transaction is often handled by a lawyer, who is subject to rules of professional conduct that prohibit them from representing both the lender and the borrower.  Therefore, you can be assured that a lawyer hired from K & Y Law, P.C. to help negotiate and execute a private mortgage will only be representing you and your best interests.  To protect your major investments and your interests, call our Thornhill, Ontario law firm today at 905-597-8529.

What are the Special Challenges of Private Mortgages?

Private mortgages can be more complicated than conventional mortgages with regard to escrow accounts, sale payouts, title insurance, and the discharging of previous mortgages. At K & Y Law, P.C., we have years of experience and training in successfully closing sales involving private mortgages, and can ensure that your transaction is smooth and hassle-free.

Can Just  Any Lawyer Handle Private Mortgage Transactions?

Private mortgages are not regulated by federal or provincial government, which can leave openings for fraud or shady practices.  Hiring a lawyer with experience and knowledge in this specialized area of Real Estate Law will ensure that your private mortgage transaction is completed correctly and safely.   Protect your investments and yourself by calling K&Y Law P.C. at 905-597-8529 today!