Private lending Is an effective tool In situations where credit Is below 650 beacon score due to high utilization or missed payments. In these cases the equity of the home Is heavily relied upon for the collateral and risk management.

It Is Important to remember that there Is risk for the lender and risk for the borrower. Rights for borrowers are aligned with best practises written in the commitment letter. They are not regulated the same as banks.

Common types of private lenders are:

MIE Mortgage Investment Entities - Broader term for MIC’s or syndicated mortgages or pooled Investors In mortgage lending. - Regulated by CRA and may have adopted practise standards from FCAC they are not regulated like banks.

MIC Mortgage Investment Corporations - Investors pooling funds for the purpose of lending to sub prime borrowers - Regulated by the CRA

Individual Private Lenders - Individuals lending funds with a CHANGE IN FIDUCIARY DUTY from the mortgage associate. - Regulated by the CRA