Residential Mortgage

Private Residential Mortgage – Sandhu Capital

In today’s evolving real estate market, many borrowers are turning to private residential mortgages as a flexible and efficient solution for purchasing or refinancing a home, especially when traditional banks say no. Whether you’re self-employed, have bruised credit, or need funding fast, private lending can offer a practical path forward.

At Sandhu Capital, we specialize in arranging private residential mortgages across Surrey, Vancouver, and the Lower Mainland. Here’s everything you need to know about this alternative financing option.

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What is a Private Residential Mortgage?

A private residential mortgage is a home loan provided by a private lender or mortgage investment corporation (MIC), rather than a bank or credit union. These loans are commonly used by borrowers who do not meet traditional lending criteria but still own (or are purchasing) residential real estate.

Private mortgages are secured by the property itself and are typically short-term (6 to 24 months), with interest-only payments and more flexible approval standards.

Who Uses Private Residential Mortgages?

Private residential mortgages are ideal for:

• Borrowers with poor or limited credit history

• Self-employed individuals with non-traditional income

• Homeowners needing fast refinancing

• Buyers with high debt-to-income ratios

• Clients facing foreclosure or power of sale

• New immigrants without established credit

• Investors purchasing properties outside standard lending guidelines

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Private Mortgage for a Home Purchase

If you’re buying a home and don’t qualify for a traditional mortgage, a private mortgage can provide the funds you need, often faster and with less documentation. This can be especially useful in competitive markets where speed matters.

At Sandhu Capital, we help clients purchase:

• Detached homes

• Townhomes and condos

• Rental or investment properties

• Rural or non-conforming properties

We work with an extensive network of private lenders who are open to creative solutions and can fund deals quickly, often in as little as a few days.

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Private Mortgage Refinance

Homeowners may also use a private mortgage to refinance their property for a variety of reasons:

• Pay off high-interest debt

• Catch up on missed mortgage payments

• Stop foreclosure proceedings

• Access equity for renovations or investment

• Consolidate multiple loans into one manageable payment

Unlike traditional refinancing, private lenders are primarily focused on the equity in your home, not your credit score or income. If you have at least 20%–30% equity in your property, you’re likely eligible.

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Key Benefits of Private Residential Mortgages

• Fast approvals and funding

• Flexible qualification criteria

• Short-term, interest-only payment structure

• Available for high-risk or complex files

• Customized solutions tailored to your situation

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Important Considerations

Private residential mortgages come with higher interest rates and lender fees than bank mortgages due to the increased risk to the lender. However, they serve as a bridge, or a short-term solution until the borrower can transition to conventional financing.

At Sandhu Capital, we ensure full transparency so our clients understand the terms and costs upfront. We also work closely with you to develop a clear exit strategy, whether that’s refinancing with a traditional lender or selling the property.

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How Sandhu Capital Can Help

As a trusted private mortgage broker in Surrey, B.C., Sandhu Capital works with a wide range of private lenders to help clients:

• Purchase a new home

• Refinance and access home equity

• Secure fast funding for urgent needs

• Overcome traditional lending barriers

We handle everything from application to funding, including appraisals, legal documentation, and lender negotiations, so you can focus on your goals, not the paperwork.