Loan security is always taken by the lender when making a loan advance to the client.
If a client was to buy a property, a bank would normally want a first mortgage, and non-bank private lenders are no different. They prefer a first mortgage over the security property. If the loan is to a trust or a company, then they would normally ask also for a personal guarantee from the trustees or the directors of that company.
Second mortgages (one of the more common types of loan security) are harder to come by, but in some cases they are ideal if it’s a smaller amount for a short term. It can be cheaper than refinancing the entire mortgage to a non-bank type lender. It’s really case by case, but loan security is always required for any lending.
Note: If you’re not 100% sure whether you have the adequate amount of loan security for the lending amounts you are looking to borrow for your financing or project needs, feel free to get in touch with me and over a phone call. I should be able to give you a no-obligation indication from a short chat with you. I’d also implore you to check out some of my testimonials to give you that extra assurance that you’re in good, safe and trusted hands.