Alternative & private lending

Have you been turned down by your bank? Has your credit been affected by a difficult period, or is your income hard to prove under traditional criteria? A refusal isn’t the end of your project.

Besides banks and credit unions, there are alternative and private lenders with more flexible criteria. As mortgage brokers, we have access to these solutions and help you find the one that fits your situation, anywhere in Québec.

Our approach is simple: we first check whether a traditional solution is possible. If not, we present the alternative or private options, their real costs and a clear plan to return to a traditional lender as soon as possible.

Alternative lending

Alternative lenders are established financial institutions, such as trust and loan companies, that accept applications that don’t meet the major banks’ criteria. They look at your situation as a whole rather than relying only on a credit score or an automated calculation.

Who is it for?

An alternative loan may be a fit if, for example:

• your credit report shows late payments, accounts in collection or a low score;
• you’ve gone through a bankruptcy or a consumer proposal, ongoing or completed;
• you’ve recently become self-employed, or your income is hard to prove;
• your debt ratio exceeds traditional lenders’ limits;
• you want to consolidate your debts, but your credit no longer lets you do so with your current institution.

What you need to know

• Higher rates. Rates are higher than the banks’, but generally much lower than credit cards and consumer loans.
• A larger down payment or more equity. These lenders often require a greater contribution on your part.
• Possible fees. Application fees may apply. They are always presented clearly before you commit.
• Shorter terms. Alternative loans are often designed as a transition step.

A way to bounce back

Used well, an alternative loan lets you stabilize your situation, rebuild your credit and demonstrate your ability to pay. We support you throughout the term with concrete advice, so that at maturity you can return to a traditional lender on better terms.

Private lending

Private lenders are companies or investors who lend their own funds, secured by a property. Their decision is based mainly on the property’s value and the strength of the repayment plan, rather than on your credit report or income.

In which situations?

A private loan may be considered when:

• no traditional or alternative solution is possible for now;
• you’re going through a temporary situation and need a solution while you get back on your feet;
• the funds are needed very quickly;
• the property is atypical or doesn’t meet other lenders’ criteria.

What you need to know

• Speed and flexibility. Decisions are often made quickly and the criteria are adapted to each situation.
• A higher cost. Rates are significantly higher than those of traditional and alternative lenders, and fees are generally added (lender fees, brokerage fees, legal fees). All costs are disclosed to you in writing before you make your decision.
• A short term. A private loan is a temporary solution. It must always come with a clear exit strategy, such as a return to a traditional or alternative lender, or the sale of the property.

An informed decision

Before recommending a private loan, we make sure it’s truly the best option for you and that you fully understand all the terms. We work with reputable lenders and support you until repayment, so that this solution remains a step and not a permanent situation.