Private mortgages have become a popular way for Ontario borrowers to access funds quickly when a traditional bank is not the right fit. Here is a clear overview of how they work.
What is a private mortgage?
A private mortgage is a loan secured against real estate and funded by a private lender or group of investors rather than a bank. It is registered against the property in first or second position, which determines who gets repaid first if the property is ever sold.
Who uses private mortgages?
Private mortgages suit borrowers who need fast funding, are self-employed or have non-traditional income, or whose situation falls outside rigid bank criteria. They are also common for bridging the gap between buying and selling a property, or funding renovations.
How funding works
You share basic details about the property and what you need. The lender assesses the property and your circumstances, proposes clear terms, and once everything is agreed the funds are advanced through a lawyer — often within days.
Costs and timelines
Because private lending is faster and more flexible than a bank, it typically carries a higher interest rate. Private mortgages are usually short-term bridge solutions rather than long-term financing, so it is important to plan your exit strategy from the start.
Ready to talk?
If this sounds like your situation, start your application or contact us and we will help you understand your options across Ontario.
This article is for general information only and is not financial, legal, or investment advice. Please consult a qualified, licensed professional before making any decision.
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