Private Mortgages vs. Traditional Banks: Which One is Right for You?

When securing financing for a property, borrowers often face a critical choice: Should they go with a traditional bank mortgage or explore private mortgage lending? At Fibonaii Group Inc. (FIG), we specialize in tailored Investment Solutions, including private mortgages, and understand that the right option depends on your financial situation, timeline, and goals.

Key Differences Between Private Mortgages and Bank Loans

1. Approval Speed & Flexibility

• Banks: Strict credit checks, lengthy approval processes (weeks or months), and rigid criteria.
• Private Mortgages (FIG): Faster approvals (often days), flexible terms, and solutions for borrowers with low credit scores or non-traditional income.

2. Loan Eligibility

• Banks: Require strong credit (680+), stable employment, and low debt-to-income ratios.
• Private Lenders (FIG): Focus on property value and exit strategy, making them ideal for:
  • Real estate investing (fix-and-flips, rental properties)
  • Self-employed professionals
  • Borrowers with past credit challenges

3. Interest Rates & Terms

• Banks: Lower interest rates but inflexible terms.
• Private Mortgages: Higher rates (reflecting risk and speed) but shorter terms (1-3 years), perfect for bridge financing or investment properties.

4. Collateral & Risk Assessment

• Banks: Emphasize borrower creditworthiness.
• FIG Investment Solutions: Prioritize property equity and potential ROI, allowing more creative financing structures.

Who Should Choose a Private Mortgage?

✅ Real estate investors needing quick funding for a deal.
✅ Borrowers with unique financial situations (e.g., self-employed, credit gaps).
✅ Those requiring short-term financing before refinancing with a bank.

Who Should Stick with a Bank?

✔ Borrowers with strong credit seeking the lowest rates.
✔ Homebuyers planning to stay long-term (10+ years).

Why Consider Fibonaii Group Inc. for Private Mortgages?

At Fibonaii Group Inc., we provide customized Investment Solutions that align with your real estate goals. Whether you’re a mortgage investor looking for passive income or a borrower seeking flexible financing, our private mortgage lending options offer speed, transparency, and strategic advantages.

Ready to explore your options? Contact Fibonaii Group Inc. today! at info@fibonaiigroup.ca or visit us at https://fibonaiigroup.ca

#PrivateMortgages #RealEstateInvesting #MortgageLending #PassiveIncome #RealEstateInvestors #FixAndFlip #InvestmentProperties #FibonaiiGroup #AlternativeLending