BORROWERS - alicorn.ca

Alicorn Private Lending is expert in private mortgages. We operate with a strong focus on transparency, integrity, and borrower protection, ensuring you’re not just getting funding – but making an informed financial decision. We work with a large pool of trusted private lenders and investors, giving you access to more options and better terms than working with a single source.

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Frequently Asked Questions

Find answers to commonly asked questions about private mortgages.

What is a Private Mortgage?

A private mortgage is a loan provided by an individual or private lending company, rather than a traditional bank or credit union. These loans are typically used when conventional financing is not an option due to credit challenges, income verification issues, or time constraints.

How much can I borrow through a private mortgage?

Loan amounts depend primarily on the equity in your property, not just your credit score or income. Most private lenders will lend up to 70-75% of your home’s value, depending on the property and location.

Can I get a private mortgage with bad credit or no income verification?

Yes, private lenders emphasize property value over credit/income, making these loans popular for self-employed or credit-challenged borrowers. Decisions are often based more on property equity and exit strategy than credit score alone.

I already have a first mortgage with a bank. Can I still obtain a private mortgage?

Yes, many borrowers use private mortgages as a second mortgage behind their existing bank financing. Private lenders often provide second-position loans for purposes such as debt consolidation, home renovations, or short-term cash flow needs. Eligibility depends on the property’s equity, your ability to make payments, and your overall financial strategy.

What are the interests rates and fees?

Private mortgage rates are generally higher than those from banks, as they involve more risk. In addition to interest, you may be responsible for:
– Lender fees
– Broker fees
– Legal and appraisal costs
We are committed to full transparency and will explain all costs before you proceed.

How quickly can I get funded?

Private mortgages can close within a few days to two weeks, depending on the complexity of the deal and documentation.

What are the repayment terms?

Private mortgages are usually short-term solutions (6 to 24 months), often used to bridge financial gaps or improve credit before transitioning back to traditional financing. Most private mortgages are interest-only payments.

What can I use the funds for?

You can use private mortgage funds for:
– Paying off debts or CRA arrears
– Home renovations or repairs
– Business or investment opportunities
– Bridging a gap between transactions
– Refinancing existing mortgages

What documents do I need to apply?

Basic requirements usually include ID, completed application form, a recent mortgage statement (if applicable), property details (appraisal usually required), purpose of funds, and exit strategy.