Private Mortgages
When traditional lenders say no, private mortgages offer a flexible path forward.
What Is a Private Mortgage?
A private mortgage is a loan funded by a private individual or company rather than a bank or credit union. Private lenders focus primarily on the equity in your property rather than your credit score or income documentation. This makes them an option for borrowers who don't qualify through traditional channels — whether due to credit challenges, self-employment income, or a unique property.
Who Uses Private Mortgages?
Credit challenges
If you've had a bankruptcy, consumer proposal, or collections, private lenders can bridge the gap while you rebuild your credit.
Self-employed borrowers
Traditional lenders often struggle with non-traditional income. Private lenders look at the big picture — your equity and overall situation.
Bridge financing
Need to close on a new home before your current one sells? A private mortgage can bridge the gap.
Unique properties
Acreages, rural properties, or homes in need of repair can be difficult to finance conventionally. Private lenders are more flexible.
Fast closings
Private mortgages can close in days rather than weeks — ideal when timing is critical.
How Private Mortgages Work
Private mortgages are typically short-term (6 months to 2 years) and carry higher interest rates than conventional mortgages, reflecting the increased risk to the lender. They are designed as a temporary solution — a stepping stone to get you back to conventional financing once your situation improves. I work with a trusted network of private lenders and will always be transparent about costs and terms.
The Process
Review your situation
We discuss your goals, property, equity position, and timeline to determine if a private mortgage is the right fit.
Match with a lender
I connect you with the most suitable private lender from my network based on your property and needs.
Appraisal & approval
The lender orders an appraisal and reviews the file. Approvals can happen within 24–72 hours.
Close and plan ahead
We close the mortgage and immediately start planning your exit strategy to conventional financing.
Private Mortgage FAQs
How much does a private mortgage cost?
Rates vary based on the lender, property, and your situation — typically ranging from 8% to 14%. There are also lender and broker fees. I will always provide full disclosure of all costs upfront.
How much equity do I need?
Most private lenders require at least 20–25% equity in your property (i.e., the loan-to-value ratio should not exceed 75–80%).
Is a private mortgage a long-term solution?
Generally no. Private mortgages are designed as short-term bridges. The goal is always to transition you back to conventional financing as quickly as possible.
Let's Find a Solution
Every situation is unique. If you've been turned down by a bank, don't give up — reach out and let's explore your options together.
Get in Touch