Alternative mortgage lender: private non-bank loan
A private mortgage lender is an individual, company or investment structure that finances a property outside the conventional mortgage channel (traditional lenders), with security registered against the property. In Switzerland, this type of non-bank loan must be assessed carefully, because it may meet a real need but often involves a higher cost, stricter terms and less room for error.
When to use an alternative mortgage lender
An alternative mortgage lender may step in when standard financing is not immediately possible, but the project remains economically defensible. This may be the case if you need to buy quickly, refinance an urgent debt, bridge an estate matter, finance an atypical property or wait for the sale of another home.
The point is therefore not simply “getting money”. The key issue is whether the loan serves as a temporary solution, with a clear exit: sale, refinancing, future equity contribution, regularisation of a file or improvement of your financial situation. Without an exit strategy, a private mortgage lender can turn a temporary difficulty into a lasting problem.
Collateral, cost and risk control
A private lender first looks at the quality of the collateral: property value, available mortgage rank, safety margin, liquidity of the local market and ease of resale in the event of default. It may require a mortgage certificate, a specific rank, a short term, higher interest or significant application fees.
You should therefore compare the total cost, not just the rate. This includes notary fees, land register costs, creation or transfer of the mortgage certificate, possible analysis fees, penalties, default interest and early repayment terms. Private mortgage lenders can be useful, but they require a careful reading of the contract: term, maturity date, personal guarantees, payment default and procedure in the event of non-repayment.
Example of a private lender for buying a home
You are buying a house, but part of your equity depends on selling your current home. The timeframe is too short and your file cannot yet be finalised under good conditions. A private lender for buying a home may then temporarily finance part of the need, provided that the property value, mortgage rank and exit plan are clearly documented.
This type of solution must remain targeted. It does not automatically replace conventional financing; it can serve as a bridge, transition solution or specific financing arrangement. It should therefore be distinguished from standard lenders, which fall under a different analysis framework.
