What is a loan against property (LAP) ?
A private loan against property (LAP) in the USA, UK and Canada is a financing arrangement in which an individual or business borrows money from a private lender using real estate as collateral.
The loan is secured by a lien on the property, meaning the lender has the legal right to repossess or sell the property if the borrower defaults.
In the USA, private loans against property are often referred to as hard money loans, they are popular with real estate investors, house flippers, and borrowers with poor credit who need quick access to funds.
In the UK, private loans against property are usually called bridging loans or second-charge loans when issued by private lenders.
In Canada, private loans against property are also a key part of the alternative lending market, especially for those who don’t qualify under Canada’s strict mortgage stress tests.
Who does a loan against property works ?
How It Works – Step by Step
- Application:
You apply with details of your property, income, and the loan amount you need. - Property Valuation:
The lender evaluates the property’s market value. Typically, you can borrow 50–70% of the property’s value (called Loan-to-Value ratio, or LTV). - Documentation & Eligibility:
- Proof of ownership of the property (title deed, registration papers).
- Proof of income (salary slips, tax returns, pension, business accounts).
- Identity and address documents.
- Approval & Loan Disbursement:
Once approved, the lender places a lien (legal claim) on your property until the loan is fully repaid. The loan is then disbursed as a lump sum or line of credit. - Repayment:
You repay through monthly EMIs (equated monthly installments), which cover both principal and interest, over a tenure that may range from 5 to 20 years.
Who are the top lenders for loan against property (LAP) in the USA, UK and Canada ?
Here’s an updated overview of the top private lenders offering Loans Against Property (LAP)—also known as hard-money, bridging, or private mortgage lenders—in the USA, UK, and Canada, based on recent, credible sources:
United States (Hard Money / Property-Based Private Lenders)
According to multiple expert recommendations and lending rankings, the leading private mortgage lenders include:
- Kiavi – Recognized for fair rates and strong digital functionality. Excellent for fix-and-flip investors.
- RCN Capital – Known for personalized service, especially for both new and experienced real estate investors. The CloseFit Small Business
- Easy Street Capital – Stands out for rapid funding—ideal for urgent deals.
- New Silver – Offers very fast loan approvals, useful for quick-turnaround financing.
- Additionally noted are Constitution Lending, Flip Funding, Center Street Lending, and Residential Capital Partners, each serving niche investor needs like low credit score borrowers, seasoned investors, or no down-payment situations.
These firms specialize in short-term, secured loans based on property value, making them a go-to when traditional bank mortgages are unavailable.
United Kingdom (Bridging / Property Bridge Lenders)
Top providers in the UK bridging finance market include:
- United Trust Bank – Known for competitive rates on secured bridging loans.
- Precise Mortgages – Offers a variety of secured property finance options, including bridging.
- Shawbrook Bank, West One, Apex Bridging, Together, LendInvest, ABC Finance, Funding 365, and MT Finance are also highlighted for their agility and tailored bridging solutions.
- MT Finance, in particular, stands out for bridging finance and auction property funding across large loan ranges. MT Finance
These lenders support quick transitions or purchases, ideal for scenarios such as buying property at auction or managing timing gaps between transactions.
Canada (Private Mortgage Lenders)
Canada’s private lending landscape includes several specialist firms, particularly for borrowers who don’t meet conventional bank criteria:
- Citadel Mortgages – Offers fast, flexible private mortgage options, including access to up to 85% of home equity and approval within just a few days. Citadel Mortgages
- A directory of Canadian private and B-type lenders features notable names like Alta West Capital, CMLS Alternative, CMLS AVEO, Community Trust, Equitable Bank, First National Excalibur, Fisgard, Haventree Bank, Home Trust, Neighbourhood Holdings, and Peoples Bank. These entities offer flexible terms and are known for filling the gaps left by traditional lenders.
- Additionally, private mortgage aggregators like Private Lender Inc. and broker networks (e.g., Turnedaway.ca) provide tailored lending based on property equity rather than credit scores.
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