{"id":3103,"date":"2023-07-20T11:03:04","date_gmt":"2023-07-20T15:03:04","guid":{"rendered":"https:\/\/canadianlending.ca\/brokers\/?p=3103"},"modified":"2023-07-21T06:40:14","modified_gmt":"2023-07-21T10:40:14","slug":"how-to-choose-a-private-lending-partner","status":"publish","type":"post","link":"https:\/\/staging.canadianlending.ca\/brokers\/how-to-choose-a-private-lending-partner\/","title":{"rendered":"How to choose a private lending partner"},"content":{"rendered":"
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After a short hiatus, the Bank of Canada returned to its interest rate hikes in June in its continued efforts to curb inflation. The Bank has increased the benchmark rate to the highest it\u2019s been since 2001. With the cost of owning a home in Canada on the rise again, home buyers and owners will continue to rely on private lenders to achieve their goals and keep up with their existing obligations.\u00a0\u00a0<\/span><\/p>\n But not all private lenders are created equal. As interest in private lending continues to grow, it\u2019s more important than ever that mortgage brokers build robust relationships with established private lenders that are ethical, transparent and accountable.\u00a0<\/span><\/p>\n To help guide your clients through these uncertain times, be sure to partner with a private lender you can trust to provide the tools and knowledge your clients need to feel confident about their mortgage decisions. Keep these four key characteristics in mind when <\/span>choosing a private lending partner<\/span><\/a>, and advise borrowers to consider these factors when reviewing their options.<\/span><\/p>\n Relationships <\/b>\u2014<\/span> The level of service a lender provides to you and your clients from the get-go is a key indicator of the support you can expect throughout the partnership. Turn to your network to learn what a lender\u2019s reputation and relationships are like. Focus on connecting with a lender that prioritizes open, honest, and consistent communication, even when delivering bad news. In addition, a private lender that has a borrower\u2019s best interest at heart will always prioritize deals with a viable exit strategy early on in the mortgage process. Trustworthy private lenders, like CMI, also take the time to understand a borrower\u2019s full story in order to help you come up with the best possible solution for your client.\u00a0\u00a0<\/span><\/p>\n <\/b><\/p>\n Resources <\/b>\u2014 When it comes to private lenders, bigger tends to be better. Consider how long a private lender has been in the market; the size and scope of the company; how many mortgages they\u2019ve funded; and where their capital is coming from. Larger, more experienced private lenders will generally have a dedicated and experienced team of underwriters, broker relationship managers, and support staff to ensure they have both the expertise and capacity to deliver a high-touch experience and foster lasting relationships with their broker partners. In addition, industry-leading private lenders are generally more digitally-driven with greater investment in mortgage technology to improve the client journey for brokers and their borrower clients.\u00a0<\/span><\/p>\n Range <\/b>\u2014<\/span> A leading private lender can <\/span>get deals done when others can’t<\/span><\/a>. Focus on lenders that have proven their flexibility in the way they structure their deals and the range of solutions that they can provide. These lenders are agile, creative, and offer a range of personalized solutions to help borrowers improve their credit, consolidate debt, or get into a new home.\u00a0<\/span><\/p>\n Reputation <\/b>\u2014<\/span> A private lender\u2019s reputation is a\u00a0 key consideration. Help steer clients toward a private lender that is upfront about fees and costs and prioritizes transparency. Reputable private lenders are not afraid to be honest with brokers and borrowers alike to ensure the suitability of the solution – and to make sure there are no surprises – to avoid potentially devastating consequences down the line. Borrowers should also do their own research, look at reviews, and learn about the experiences of friends, relatives, and other homeowners.\u00a0<\/span><\/p>\n CMI is an award-winning private lender with a proven track record over the past 18 years. CMI\u2019s success – including the recent milestone of surpassing $2 billion in lifetime mortgage fundings – has been driven by our mission to provide financing to underserved and disadvantaged borrowers using fair, transparent, and ethical business practices. In addition, it\u2019s always been important to CMI to elevate the reputation of the private lending industry. When recommending a private lender to clients, there are many reasons <\/span>why CMI stands out<\/span><\/a>.\u00a0<\/span><\/p>\nThe CMI difference\u00a0<\/b><\/h2>\n