Private Mortgages
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Navigating Complexity with
Precision and Care
Not every deal fits at the Bank, and some transactions need bridge financing or in their present state, do not fit the senior lending appetite.
Opportunity waits for no one, and in business, time is money.
The one-size-fits-all approach of traditional mortgages may not meet your unique needs. HALO Mortgage Advisory Inc. presents a more adaptable alternative: Private Mortgages.
For private mortgages, our focus on due diligence stands out. We meticulously assess each file with proprietary underwriting guidelines, thoroughly examining risk factors to create a comprehensive risk profile. This detailed approach ensures that our private mortgage arrangements foster success in every transaction.
Why Choose a Private Mortgage?
Time-Saving
Forget the lengthy approval processes of traditional banks. Gain faster access to capital and accelerate your project's timeline.
Flexible Terms
Whether you're financing a business expansion, development project, or investment property, our private lending solutions can be customized to fit your needs.
Bridge to Traditional Financing
Once your project is repositioned or your business requirements are met, shift seamlessly into traditional financing.
Reduced Opportunity Cost
Secure that unmissable property deal or finance timely business improvements while your competitors await their bank's approval.
When is a Private Mortgage More Suitable?
- Complex Projects: When juggling multifaceted business initiatives or intricate real estate deals, the flexible structure of a private mortgage can be a lifesaver.
- Repositioning Assets: A private mortgage can be the perfect tool for short-term asset repositioning before securing a more traditional, long-term loan or CMHC.
- Capitalizing on Market Conditions: Leverage a private mortgage to swiftly capitalize on favorable market conditions, something that slower traditional financing methods might jeopardize.
- Speed and Adaptability: Bypass the red tape and traditional lender constraints. Private mortgages offer quicker access.
- Customized Solutions: Tailor your mortgage terms to suit your unique needs for short-term transitions or more structured long-term strategies.
- Cost-Effective: While private lending may seem costlier at first glance, when you factor in the flexibility and potential opportunity costs saved, the difference in expense compared to traditional banks narrows considerably.
Private mortgages offer alternative financing routes but come with their own set of complexities. They generally present higher interest rates than traditional loans, reflecting the increased risk for lenders. Due to higher loan-to-value ratios, borrowers must often contribute more equity or offer additional collateral. Additionally, the typically shorter terms of private mortgages may necessitate more frequent renewals, which requires borrowers to stay vigilant about their refinancing needs and market conditions. It’s essential for those considering private mortgages to weigh these factors against their financial strategies carefully.
Private mortgages are pivotal for a diverse set of borrowers. Commercial entities like businesses, real estate investors, home owners, and developers choose them for their adaptability during major transactions like acquisitions, construction, or expansions and for managing cash flow. Our clients often have complex income sources that traditional lenders struggle to understand, which makes them ideal candidates for private mortgages. This demographic particularly benefits from our construction mortgage solutions for custom homes and residential investment projects, areas where senior lenders typically show limited interest.
Additionally, investors seeking to broaden their portfolios with real estate-backed ventures, whether residential or commercial, frequently turn to private mortgages as a strategic financial tool to diversify a well-balanced investment portfolio.
Need clarity on navigating Private Mortgage Solutions?
Private Lending Guidelines at a Glance
Purpose:
Purchase | Refinance | Construction
Lending Areas:
Serving the GTA and its Environs
Loan Amounts:
up to $50MM
Max LTV:
Achieve up to 70%
Max LTC:
Secure up to 70% for Construction
Terms:
Flexible 1 – 2 Year Periods
Interest Rate:
Starting at 12%*
Lender Fee:
3%*
Specializing In:
Commercial Properties, Residential Estates, and Construction Loans.
At HALO Mortgage Advisory, we don’t just offer first and second mortgages. As both equity-based and cash-flow lenders, our flexibility transcends all asset classes. We only need assurance in a solid exit strategy and your capability for repayment.
Kindly note: The final interest rate and lender fee will be finalized after our comprehensive review and risk assessment of the deal.
Partner with HALO Mortgage Advisory
Unlock the potential of private mortgage financing with HALO Mortgage Advisory, specifically designed for commercial business owners, real estate developers, and investors. We specialize in offering alternative financing solutions that bypass the constraints of traditional loans, enabling you to achieve your project goals with speed and flexibility. Let us help bring your vision to life.
“The Halo team (Connie, Anna, Stephen) was excellent in helping me build a solid business plan and secure a funding for a business I am starting up. The whole Halo team is very professional and the process was seamless. Securing funds have always been one of my main concerns with starting a business but Halo makes it really easy.
I can't say enough good things about this team and I will work with them again if/when the time comes to expand my business. 100% highly recommended.”
– Ed M.
Frequently Asked Questions
A private mortgage is a loan secured by real estate, funded by private investors instead of banks or traditional lenders. Unlike traditional mortgages, private mortgages often cater to specific needs like income-producing commercial real estate or apartment construction, offering more flexibility and quicker funding times but typically at higher interest rates.
HALO Advisory specializes in private lending tailored to income-producing commercial real estate and apartment construction projects. Our solutions are designed to support developers and property owners with their financing needs, from initial construction to long-term income generation.
Qualification for a private mortgage with us depends on the value and potential of the real estate project, your investment experience, and the project's feasibility. Our team will evaluate these aspects to ensure the private mortgage aligns with both your needs and our lending criteria.
Private mortgages offer several benefits, including flexibility in terms, faster approval and funding processes, and financing options for projects that may not meet traditional lending criteria. They're ideal for time-sensitive projects or those requiring specialized funding solutions.
One of the key advantages of private mortgages is the speed of funding. Once approved, funding can be available in as little as a few weeks, allowing you to move forward with your project without significant delays.
For a private mortgage application, you'll need to provide detailed project plans, financial projections, a business plan if applicable, property appraisals, and any other documents that demonstrate the viability and profitability of your project.
Interest rates for private mortgages are typically higher than those for traditional bank loans, reflecting the increased flexibility and risk associated with these loans. Rates are determined on a case-by-case basis, considering the project's details and your financial standing.
While our primary focus is on income-producing commercial real estate and apartment construction, we're open to discussing funding for other types of projects. Contact us to explore how we can meet your specific financing needs.
The LTV ratio for a private mortgage is determined based on the project's risk assessment, its potential value upon completion, and current market conditions. We aim to offer competitive LTV ratios that reflect the project's merits and your financing needs.
Beginning the process is straightforward. Contact HALO Advisory to schedule a consultation. We'll discuss your project in detail, review your financing needs, and guide you through the application process to secure the private mortgage that best supports your goals.
Pre-payment terms for private mortgages vary. Some loans may include pre-payment penalties, while others offer more flexibility. These details will be clearly outlined in your loan agreement, ensuring transparency from the start.