Private Mortgage Solutions When Banks Say No
Access flexible home financing through private lenders even with credit challenges, unique income situations, or recent financial setbacks. Get customized terms and faster approvals to achieve your property ownership goals.
Advantages of Private Mortgage Financing
Customized solutions that work when traditional financing isn’t an option
Access to Cash
Use the equity in your home through a private mortgage to secure funds for major expenses like renovations, education, or debt consolidation—without needing to sell assets or disrupt your long-term financial plans.
Flexible Terms
Select private mortgage terms that suit your financial goals. Whether you require short-term cash flow or a longer-term repayment plan, flexible options are available to help you manage your finances with ease and confidence.
Alternative Financing
Private mortgages are a smart option when banks say no. Ideal for those with unique financial situations or past declines, they offer flexible solutions when traditional lenders aren’t an option.
No Need to Refinance
Get extra financing through a private mortgage without changing your current mortgage. Maintain your existing terms while covering new financial needs—making it easier to manage both old and new obligations.
Fast Approval Process
Private mortgages feature a streamlined application process with faster approvals than traditional lenders. Get the funds you need quickly with less paperwork and fewer qualification hurdles.
Property Retention
Keep your home when facing foreclosure or financial challenges. A private mortgage can provide the breathing room needed to retain ownership of your property while you develop a long-term plan for repayment.
When Is a Private Mortgage Right for You?
Private mortgage financing can be an excellent solution in various scenarios where traditional financing isn’t accessible or suitable:
- First-time buyers turned down by banks due to credit or income verification challenges
- Real estate investors needing bridge loans for property acquisitions or renovations
- Homeowners requiring second mortgages or debt consolidation solutions
- Canadians facing foreclosure or power of sale situations who need immediate financing
- Self-employed individuals with complex income structures that traditional lenders won’t accept
- Property owners with unique properties that don’t fit conventional lending criteria
Our mortgage experts can help determine if a private mortgage is the right solution for your specific situation and guide you through the entire process.
Private Mortgage Resources
Explore these valuable resources to better understand your private mortgage options
CBC’s Private Mortgage Guide
Understand the fundamentals of private mortgages, including how they differ from traditional bank financing, typical terms, and what to expect during the application process.
Read the guideDebt consolidator
use my debt consolidator calculator to calcuate how you can consolidate the debt with private mortgage to make your life easy.
Try the calculatorFrequently Asked Questions
Get answers to common questions about private mortgage financing
A private mortgage comes with higher interest rates and fees compared to regulated financial institutions. It’s essential to consider the total cost and your ability to make payments. Working with a reputable broker helps ensure you understand all terms and have a solid exit strategy to transition to more favorable financing in the future.
Private mortgage lending typically allows you to borrow up to 75-80% of your property’s value, depending on location and property type. The amount is primarily based on the equity in your home rather than your income or credit score. Urban properties in major markets may qualify for higher loan-to-value ratios than rural properties.
Traditional mortgages from banks and credit unions focus heavily on borrower qualification (income, credit score, debt ratios) with lower interest rates but stricter approval criteria. Private mortgages primarily assess property value and equity, offering more flexible qualification but at higher interest rates. Private mortgages also typically have shorter terms (1-3 years) compared to conventional mortgages.
Yes, a private second mortgage is an excellent tool for debt consolidation. You can use it to pay off high-interest debts like credit cards, tax arrears, or other loans, potentially improving your cash flow and reducing your overall monthly payments. This approach leverages your home equity to secure lower interest rates than most unsecured debts.
Qualifying for a private mortgage primarily depends on your property’s value and location. While your credit score and income are considered, they aren’t as critical as with traditional lenders. Having sufficient equity in your property is the most important factor. Our team evaluates each situation individually to find the best private lending solution for your circumstances.
Private mortgage interest rates typically range from 7% to 12%, depending on various factors including the loan-to-value ratio, property location, your credit profile, and the specific purpose of the loan. Higher risk scenarios may command higher rates. These rates are higher than traditional mortgages but significantly lower than most credit cards and unsecured loans.