Private Lenders

Tracy Head • January 24, 2025

The easy fix isn’t always the right fix.

I’ve been wondering how long it would take to see the fallout as clients who have been paying really low interest rates come up for renewal. 


We have all experienced a steep increase in the cost of living. Even though rates now are sitting where most clients qualified with the stress test when they originally got their mortgages, for many people life has happened in the meantime.


What do I mean by that?


Often clients are having to push right to the top of what they qualify for just to get into the housing market. As we are going through the mortgage approval process we talk about keeping big consumer purchases (financing a car or furniture as an example) to a minimum as additional loan payments reduce borrowing power.


Once clients are into a home life does indeed happen. The older car dies and a new car is necessary. Little ones come along and that can affect family income and add a daycare bill to the bottom line. Property taxes increase. Grocery prices skyrocket. You know the list.


Balances start creeping up on credit cards or lines of credit. 


There are lots of different mortgage products to help with consolidation of debt. Lately the challenge has been that even if clients have significant equity in their homes with the increased interest rates they may not qualify with traditional lenders.


Alternative lenders and private lenders come into play as options in this case. I’ll leave the alternative lenders to another day because I have a cautionary tale about private lenders.


Not all private lenders are created equal. I have several that I work with when my clients need a solution in the private world.

There is a time and a place where a private mortgage is the ideal fit. As long as you have an exit strategy (a plan as to how it will be paid out in a relatively short time frame ie: one year) this can be a great option for clients.


Then there is the private lender that hurts my heart.


Heavy catchy marketing bombards us from multiple venues. Their jingle is running through my head as I write this. For them the bottom line is that if you have adequate equity in your home you are approved.


Cool. That fixes the immediate problem. However, more times than I like to think about, this lender creates far bigger problems for people.


Despite the fact that you have equity in your home you still have to make the payments on these private mortgages. Interest rates are usually around the 14% mark so payments are high and you are not making any headway with paying down the mortgage.

If there is no significant increase in your income you struggle and find yourself in a financial bind again. They set up another mortgage with an even higher rate.


When you sign on for a private mortgage your are responsible for covering your legal fees, the lender’s legal fees, and there is also a lender fee that is included. Even a small private mortgage can end up costing almost $10,000 to put in place.


If you couldn’t cover expenses with your first mortgage (at reasonable rates) guess what happens when you start adding in more and bigger payments on top of your normal expenses?


For most people the only out at this point is selling their home.


That is a very hard conversation for me to have with clients, especially when they’ve been in their home for many years.


If you are finding that there is more month than money, sitting down and reviewing your expenses is the first step to take. Are there any areas that you are able to cut back? Do you have any options for increasing your income?



If the answer is no, talking to a mortgage professional sooner rather than later may help identify some options before you end up in a never-ending cycle of sleepless nights and missed payments.

Tracy Head

Mortgage Broker

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Trying to Buy a Home in a Competitive Market

By Tracy Head • January 23, 2026
Trying to Buy a Home in a Competitive Market? You’re Not Imagining Things After years as a mortgage broker, I can tell you this with confidence: buying a home in a competitive market isn’t just hard. It’s emotionally exhausting. I talk to buyers every day who feel like they’re doing everything right. They’ve saved a down payment, checked their credit, talked to a lender, and started house hunting with realistic expectations. And yet, they’re still losing out. Multiple offers. Bidding wars. Homes selling in days — or hours. It can make even the most level-headed buyer question whether homeownership is still within reach. One of the biggest challenges I see is speed . In competitive markets, hesitation can cost you the house. Buyers are often expected to make quick decisions on the largest purchase of their lives, sometimes with limited conditions and tight timelines. That’s a lot of pressure, especially for first-time buyers who are still learning the process as they go. Then there’s the financing side. In a hot market, a strong offer isn’t just about price. It’s about certainty . Sellers want to know the deal will close. That’s why buyers with solid pre-approvals, flexible closing dates, and fewer conditions tend to stand out. Unfortunately, many buyers don’t realize how important this is until they’ve already lost a few bidding wars. Another challenge is expectations versus reality . Online listings and headline prices don’t always tell the full story. I often see buyers fall in love with homes that are priced low to attract attention, only to sell well above asking. That can be discouraging, especially when it happens repeatedly. It’s not that you’re doing something wrong. It’s that the market is playing a different game. Appraisals can also throw a wrench into things. Even if you’re willing to pay more, the lender still needs the property to appraise at or near the purchase price. When prices are rising quickly, appraisals sometimes lag behind the market. That can mean buyers need to come up with extra cash or renegotiate. That’s not a conversation anyone wants after winning a bidding war. And let’s not forget the emotional toll. I’ve seen buyers go from excited to deflated more times than I can count. Losing out on a home — especially one you pictured yourself living in — hurts. Do it three or four times, and it’s easy to feel burnt out or start second-guessing your plans entirely. So what helps? Preparation. Flexibility. And a good team. Getting your financing sorted early — ideally before you start house hunting — gives you clarity and confidence. Understanding your true budget (not just the maximum you qualify for) helps you move decisively when the right home appears. Being open on location, property type, or timing can also make a big difference. Most importantly, remind yourself of this: This market is not a reflection of your worth or your effort. It’s competitive because demand is high and supply is tight. Not because you’re failing. I’ve seen many buyers feel like they’d never catch a break, only to end up in a home they love — sometimes one they hadn’t even considered at first. The path may be longer and bumpier than expected, but with the right guidance and a bit of resilience, it’s still very possible. If there’s one thing I want buyers to know, it’s this: You’re not alone. And you’re not crazy.  This market is tough — but tough doesn’t mean impossible.

FTHB readiness

By Tracy Head • January 8, 2026
First-Time Home Buyers: How to Get Ready Before You Fall in Love With a House After years of working with first-time buyers, I’ve learned this: most people don’t struggle because they can’t afford a home — they struggle because they start in the wrong order. Buying your first home isn’t complicated, but it is sequential. A little preparation goes a long way toward making the process smoother, less stressful, and more affordable. Step one: know your numbers. Before talking listings, take an honest look at your income, debts, savings, and credit. Lenders don’t just look at what you earn — they look at how you manage credit. Pull your credit report early and fix any issues before they become deal-breakers. Step two: understand the full cost. Your down payment is just the start. First-time buyers should also budget for legal fees, land transfer tax, moving costs, and everyday expenses that come with homeownership. A good rule of thumb is to have an extra 1.5%–4% of the purchase price set aside. Step three: timing your mortgage pre-approval matters. Ideally, speak with a mortgage broker three to six months before you plan to buy. This gives you a realistic budget, time to improve credit if needed, and the ability to lock in a rate. A proper pre-approval isn’t just a number — it’s a strategy. Step four: build your team early. A mortgage broker, real estate agent, lawyer, and insurance advisor should all be in place before you make an offer. When they work together, surprises are minimized and decisions are clearer. Finally: stay financially boring. Once you’re pre-approved, avoid changing jobs, taking on new debt, or making big financial moves without checking first. Lenders re-check everything.  Preparation doesn’t take the excitement out of buying your first home — it replaces panic with confidence. And when the right home comes along, being ready makes all the difference.