Traditional Lender Said No? You May Still Have Options.
Explore private mortgage solutions when conventional mortgage qualification doesn't fit your situation. We'll help you understand the available options, costs and risks.
Private mortgage financing generally involves higher interest rates and additional fees than conventional financing. Any financing is subject to lender criteria.
Explore private mortgage options
A licensed Mortgage Made Better broker will review your situation and discuss potential options. Submitting this form is not mortgage approval.
What is a private mortgage?
Private mortgage financing is generally an alternative form of mortgage financing funded by private lenders. It may be considered when conventional lender qualification doesn't fit the borrower's situation — for example, credit challenges, self-employed income, tax obligations, or an urgent closing timeline.
Private mortgages can differ from conventional mortgages in interest rates, fees, terms, amortization, LTV, qualification approach, and exit requirements. They are typically short-term financing solutions, and terms vary by lender. We serve borrowers across the GTA, so you can work with a local Scarborough mortgage broker, Toronto mortgage broker, Markham mortgage broker, York Region mortgage broker, Durham Region mortgage broker or Peel Region mortgage broker.
Private financing isn't automatically better — or worse — than conventional financing. It's a different tool that may fit certain situations, subject to lender criteria.
Situations where borrowers explore private mortgages.
Eligibility depends on your circumstances and lender criteria. Submitting an inquiry is not a mortgage approval.
Understand the cost before you commit.
A private mortgage can solve a short-term financing problem, but it is important to understand the full cost and your exit strategy before proceeding. Private mortgages typically involve:
- ›Higher interest rates than conventional
- ›Lender fees
- ›Brokerage fees where applicable
- ›Legal costs (often two lawyers)
- ›Appraisal costs
- ›Administration fees
- ›Shorter terms
- ›Renewal costs at term end
We review all costs upfront so you can evaluate whether the option makes sense for your situation. Fees and rates vary by lender.
What's your exit strategy?
Borrowers should understand how the private mortgage will eventually be repaid or replaced. Common approaches include:
Your future financing options will depend on your financial circumstances and lender criteria at that time. Refinancing later cannot be guaranteed in advance.
Private vs conventional at a glance.
| Conventional Mortgage | Private Mortgage | |
|---|---|---|
| Qualification | Income / credit / lender criteria | Often more property and equity focused |
| Rates | Typically lower | Often higher |
| Terms | Often longer | Often shorter |
| Fees | Vary | May be higher |
| Flexibility | Varies | Can be more flexible in some situations |
| Exit strategy | Standard mortgage lifecycle | Important to plan ahead |
General guidance only. Actual pricing, fees, terms and flexibility vary by lender and are subject to lender criteria.
How we work with borrowers.
Think private financing may be an option?
Let's review your property, equity and financing situation. Submitting the form is not mortgage approval — a licensed broker will discuss potential options with you.
Private mortgage questions borrowers ask.
Answers are general in nature. Your specific eligibility, rate, fees and terms depend on the lender, property and your situation.
Let's review your options.
If traditional mortgage financing doesn't fit your situation, let's look at the options that may be available and make sure you understand the costs and strategy before moving forward.
Private mortgage financing generally involves higher rates and fees than conventional financing. Submitting the form does not constitute mortgage approval. All financing is subject to lender criteria.