- A large share of renters can't qualify at a bank right now.
- Many have steady income but thin or damaged credit.
- They have few homes to choose from, so they're motivated.
- The lender, not the seller, takes the lending risk.
Who these buyers are
- Self-employed people whose income doesn't fit bank rules
- Newcomers to Canada without a long credit history
- People rebuilding after a divorce, job loss or medical issue
- Families paying high rent who haven't saved a full down payment
Why they're motivated
Because they can't qualify at the bank, your home is one of the very few they can buy. Many thought they'd be renting for five more years. Once the private lender qualifies them and books a showing, they tend to move quickly.
Is it risky for the seller?
No more than a bank-financed sale. You don't lend anything. The private lender qualifies the buyer and sends the funds to their lawyer, who closes with your lawyer. If the financing doesn't come together, the sale doesn't close, just as with a bank. How the process protects you.
Is this rent-to-own?
No. Rent-to-own keeps you as the owner for years. Here the buyer buys the home outright at closing, financed by the private lender, and you're paid in full.
Sell it yourself, with more buyers calling
Add the private-financing header to your ad and let our private lender qualify the buyers the banks turn away. No commission, no contract, no obligation. Listing takes about 5 minutes.
Frequently asked questions
Why are private-financing buyers so likely to buy?
Because they can't qualify at the bank, your home is one of the few they can actually buy, thanks to the private financing. Many expected to rent for years, so once the lender qualifies them and books a showing, they're very motivated.
Is this a scam? Can my house be stolen?
No. Nothing is signed with us. Once the lender approves a buyer and they write an offer, the buyer, the lender and you each choose your own lawyer. The lender sends the funds to their lawyer, who closes with your lawyer, exactly like a bank-financed sale.
Is selling to a bad credit buyer the same as rent-to-own?
No. The buyer purchases outright at closing with private financing, and the seller is paid in full through their lawyer.
Do I take on any risk if the buyer has bad credit?
No lending risk. The private lender finances the buyer. The seller is paid at closing like any sale.
Related guides
General information for Canadian home sellers, not legal, tax or financial advice. Rules and fees change, so confirm the details with a real estate lawyer in your province before you sell.