Refinancing with Private Mortgage Lenders | When You Have Insufficient Credit Score and Confirmable Income

Growth in refinancing mortgage transactions financed by private mortgage lenders has been on the rise in the Greater Toronto Area (GTA) and surrounding communities.

There are many reasons for choosing private mortgage lenders to refinance:

  • You have a credit score under 600 or have a bad credit history
  • You can’t qualify for a refinance or HELOC (Home Equity Line of Credit)
  • You need a short term loan
  • You need fast financing and don’t necessarily want to wait for a long approval process
  • You are looking for interest-only loans where you do not need to pay the mortgage principal down


Private Mortgage Lending Criteria

Private lenders take into account your property’s overall value (equity) and marketability as opposed to simply looking at your credit history and income.

Since rates are almost always higher, you would only turn to private lenders when turned down by banks and bad credit lenders such as HomeTrust. Take a look at this table for a basic characteristics of a private mortgage: [Image Source:]

Rather than try to find private lenders on your own, work with a mortgage broker like Credit Butler. A broker will have contacts from different sources and be able to present you with more options, and likely better options, than you’d be able to find on your own.

At Credit Butler, we are also able to provide a private mortgage loan for up to 85% of your home value (higher than many out there). For example, if your property is valued at $500K, you can refinance up to $425K. 

Another advantage of working with Credit Butler is we help all our clients move on to a prime lender, which is in our clients’ best interest. Private mortgage lenders want their clients to be able to transfer on to a prime lender within a year to 18 months.

Read what recent clients have said about working with Credit Butler:


Get a Quote (No Obligation)


At Credit Butler, we offer a no-obligation and fast mortgage quote, and a simple process! We do a lot of the heavy lifting, shopping and contacting multiple lenders on your behalf. And, we can do all of this over the phone.

If you are a homeowner and self-employed or have bruised/bad credit or looking for a home equity loan or any other situation where traditional lending is not possible, CLICK THE BUTTON BELOW and let’s start the discussion.