Private Mortgages Ontario

Private Mortgages in Ontario are short- term, interest-only loans, ranging in length from 1 to 3 years. Interest only loans do not require homeowners to pay the mortgage principal down, and instead only require interest payments each month.

Private Mortgages Ontario

What are Private Mortgage Lenders Guidelines?

  • No Credit Score required
  • No Employment Proof required
  • Credit report doesn’t matter.
  • Bankruptcy and Consumer Proposal’s are fine.

As you can see above, a Private Mortgage Lender has very loose guidelines, the reason is because Private Lenders, lend based on Equity. All that matters to them is amount of equity you have. We have a Private Mortgage Calculator below which you can use to see how much you would qualify.


Why would I use a private mortgage lender?

  • You want to purchase an unconventional property that a prime lender or bank won’t finance.
  • You need fast financing and don’t want to wait for a long approval process.
  • Your bad credit history means you are being turned down by conventional lenders.
  • You only need a short term loan.
  • You have nonconfirmable income that is preventing you from obtaining a traditional mortgage.

Who are the Private Lenders in Ontario?

  • Mortgage Investment Corporations (MIC’s) – Usually a pool of investors lending money.
  • Trust Companies – Often backed by one or two big investors.
  • Investors – Funds a lot of small mortgages, are usually people looking to diversify their investments.

What Interest Rate would I get?

Most Private Mortgage Lenders charge Interest rate from 5.99% to 14.99%. Often called as risk based pricing is analyzed with a lot of factors

  • Equity – The higher the combined (First Mortgage + Second Mortgage) Loan to Value, higher the pricing.
  • Credit Report – Some lender’s do look at credit report to assess their risk
  • Repayability – Every lender want’s their investment back, sources of income can also be a factor

How much are the fees for Private Mortgages?

Conventional A(ScotiaBank, MCap, TD) lender’s pay our Brokers commission for bringing them an AAA Client, hence there is no fees with A lenders.

Private Lenders doesn’t pay any commission to brokers, hence our brokers often charge a flat fee or a % fee to cover all our costs. We charge the lowest fee among other brokers. Private lenders often charge a fee as well, fortunately, all these fees can be capped (added) to the mortgage.

For Eg: You need $100,000 Private Mortgage, all the fees come to $2,000. We will issue a $102,000 Mortgage to cover all the fees & cost.

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