Private mortgages, Ontario
If the bank said not yet but your home holds real equity, a short-term private first or second mortgage may bridge the gap. We help you understand the true cost, the risks and a realistic exit before anything is signed. No promises of approval.
Who it fits
Private lenders are individuals, mortgage investment corporations and syndicates that lend their own or pooled money. They care less about a perfect credit report and more about the property securing the loan. If you owe $480,000 on a home appraised at $1,000,000, there may be room to borrow, even when income is hard to document or credit took a hit.
Common situations we hear about: self-employed borrowers waiting on tax filings, homeowners consolidating high-interest debt or tax arrears, buyers who need to close before their current home sells, and people renewing after a bank declined to continue.
Private money is expensive by design. It works best as a short, deliberate step, not a long-term home loan. If a bank or B lender can help, we will tell you.
First or second position
Replaces your current mortgage entirely, or funds a purchase. The lender is first in line if the property is sold, so pricing is usually lower than a second. It makes sense when your existing mortgage is maturing or the bank will not renew.
Sits behind the mortgage you already have. You keep your first mortgage and its rate, and borrow a smaller amount against the remaining equity. Costs are higher because the lender is second in line, and your first lender's terms still apply.
What it really costs
Exact figures depend on the lender, loan size and property. These are the categories you should expect to see in writing.
Typically well above bank rates
Private rates reflect short terms and higher lender risk. Many loans are interest-only, so your balance does not shrink.
Often a percentage of the loan
Charged by the lender for setting up the mortgage, usually deducted from the advance.
Disclosed in writing before you sign
Private files often carry a broker fee. You will see the exact amount in your disclosure documents, never as a surprise at closing.
Paid upfront, a few hundred dollars and up
An independent appraisal confirms the value the lender will rely on. Larger or rural properties cost more.
Your lawyer and often the lender's
Private mortgages are registered through lawyers. Expect to cover independent legal advice and sometimes the lender's legal costs.
Ask before you commit
If your exit takes longer than planned, renewing the private loan usually means another fee. Budget for it.
Risks to weigh
Exit strategies
Once credit, income documentation or a tax filing is sorted, many borrowers move to an alternative lender with lower costs. Our Private to B page walks through this step.
When the issue that required private money is fully resolved, a mainstream lender may be possible, sometimes after a B-lender stage.
Some borrowers use private funding to bridge to a planned sale. The plan needs a realistic list price and timeline, not the best case.
An inheritance, business proceeds or a closing on another property can retire a short loan, if the timing is documented and believable.
Where we arrange private mortgages
Our office is in Brampton. Everywhere else is handled by phone, video and email, with independent local appraisers and lawyers. Private lenders do weigh location, so rural and smaller-market properties may see different limits.
Every former borough, from Etobicoke to Scarborough
Our home region, office in Brampton
Suburban, estate and rural properties
Lakeshore towns to farm country
West of Toronto along the lake
Handled remotely, with local appraisers and lawyers
Questions
No. Equity matters a great deal to private lenders, but they also look at the property, its location and condition, your ability to make payments, and most of all your exit plan. Some requests are declined, and sometimes private money is not the right answer at all.
Private lenders generally cap total borrowing at a percentage of the appraised value, combining all mortgages on title. The exact limit depends on the lender, the property type and the position (first or second). We give a range only after reviewing the details.
A first mortgage is registered in first position and is repaid first if the property is sold. A second mortgage sits behind an existing first mortgage, so it usually costs more. A second can let you keep a low-rate first mortgage in place while borrowing against equity.
Most private terms run from about six months to two years. That short window is why a written exit plan matters before you sign, not after.
Sometimes, if there is enough equity and a credible plan. Timelines in these cases are tight, so reach out early and speak to a lawyer as well.
No. The enquiry below asks only for contact details and a general picture. If we move forward, we will explain what a lender needs and how to share it securely. Please do not send identification or financial documents through this form.
No. Sending this enquiry does not trigger a credit check. Any credit check later happens only with your explicit permission.
Private lending enquiry
A licensed agent reviews what you send and replies with honest next steps, including when private money is not the right fit.
Prefer to talk? Call (647) 775-0823 or book a 30-minute call.
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