Private mortgages are a financing option available in Canada, often provided by individual investors or private lending institutions rather than traditional banks. These loans can be a lifeline for those who may not meet the stringent criteria of conventional lenders due to factors like credit history, income verification issues, or unique property situations.

Key Points about Private Mortgages:

1. Accessibility: Private mortgages are often easier to obtain than traditional mortgages, making them ideal for borrowers with poor credit or non-standard income sources.
2. Flexibility: These mortgages can offer more flexible terms and conditions, tailored to the borrower's specific needs and financial situation.
3. Short-Term Solution: Typically, private mortgages are short-term, usually ranging from 6 months to 3 years, designed to provide temporary financing until the borrower can qualify for a conventional mortgage.
4. Interest Rates and Fees: Expect higher interest rates and fees compared to traditional mortgages, reflecting the increased risk taken on by the lender.
5. Application Process: The process can be quicker and less bureaucratic, with a focus on the property's value rather than the borrower's financial history.
6. Exit Strategy: It’s crucial to have a clear plan for transitioning out of a private mortgage, whether through refinancing with a traditional lender or selling the property.

Private mortgages can be a viable option for those needing quick, flexible financing solutions in Canada, but it's essential to understand the higher costs and have a solid exit strategy in place.

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