Private Mortgage
When banks say no, private lenders look at the full picture - focusing on your equity and property value rather than rigid qualifying criteria.
Private mortgages are funded by individual investors and mortgage investment corporations (MICs) rather than banks or credit unions. Because they are not regulated by the same federal rules, private lenders have the flexibility to approve files that institutional lenders cannot. Self-employed borrowers with complex income, homeowners with bruised credit, borrowers who have exceeded their TDS/GDS ratios, and those in urgent situations all regularly use private mortgages as a practical solution. Private mortgages are typically short-term (1–2 years) and are used as a bridge while you repair credit, sell a property, or restructure your finances.
Key Benefits
Equity-Based Approval
Private lenders focus on your property value and available equity rather than income verification or credit history.
Self-Employed Friendly
No need to prove income the way banks require. Private lenders work with stated income and common-sense underwriting.
Bad Credit Solutions
Consumer proposals, past bankruptcies, and poor credit scores are not disqualifiers for private mortgage financing.
Fast Closings
Private mortgages can close in as little as 3–5 business days - critical when timing is everything.
How It Works
- 1
We discuss your situation, property value, existing mortgage balance, and what you're trying to accomplish.
- 2
We match you with the right private lender from our network based on your equity position and needs.
- 3
We negotiate the best available terms - rate, fee structure, and term length - on your behalf.
- 4
We close the mortgage and work with you on an exit strategy to transition back to conventional financing.
Frequently Asked Questions
What interest rates do private mortgages carry?
Private mortgage rates in Ontario typically range from 8% to 15% depending on the loan-to-value ratio, property type, and risk profile. While higher than bank rates, the short-term cost is often worthwhile to solve an immediate problem or avoid a much more expensive outcome.
How long is a private mortgage term?
Most private mortgages are 1-year terms, sometimes up to 2 years. They are designed as a bridge - giving you time to improve your situation so you can qualify for conventional financing when the term ends.
What fees are involved in a private mortgage?
Private mortgages typically involve a lender fee (1–3% of the loan amount) and a broker fee. These are usually added to the mortgage so there is minimal out-of-pocket cost. We are fully transparent about all fees before you commit to anything.
Is a private mortgage a good long-term solution?
It is an excellent short-term solution. We always build an exit strategy into the plan - whether that's repairing credit, regularizing income documentation, or waiting for a bank qualification trigger - so you transition to better-rate financing as quickly as possible.
Get a Free Consultation
Tell us your situation and we'll find the best option for you.