What are private mortgages?

Private mortgages fill the gaps that mainstream lenders are unable to fill.  These mortgages are funded by private individuals or groups rather than a bank or credit union.  The private lender is invests in registered mortgages because they can receive higher returns than in some other investments.  The degree of risk corresponds directly with the rate charged.

How do I become a private lender?

If you have money available in your savings account, RRSP, holding company or family trust, you could use these funds to invest in mortgages that offer a high return and are secured by real estate.  Please Contact Us and we can explain more about how private mortgages work, the potential risks and of course the significant interest income possible.

How do I get a private mortgage?

If your mortgage broker has exhausted possibilities among mainstream programs, there is an application process just as there would be if we placed your mortgage with a bank or credit union.  We present your mortgage application to the private lender including interest rate, supporting information and all other terms and conditions. Private mortgage investors will want enough documentation to make an informed decision on their investment, and typically will want to review: bank statements, recent appraisals, employment letters, etc, but will also listen to your situation openly without the confines of lending policies that exist at all financial institutions.  The mortgage is registered by a lawyer, just as it would be with any financial institution.


  • Rates – typically 4-10% above our regular best posted rates and vary based on specific risk.
  • Term – a few months to 1 year or- longer if there is a valid reason.
  • Payments – interest only payments are typical but amortized payments are possible.
  • Fees – depends entirely on the package – usually 1 to 3%
  • Approval – approvals can take 1 day to 2 weeks depending on the deal.
  • Speed – funding can happen in less then a week but generally in about 10 days.

A private mortgage is usually only a short term solution. Once you have demonstrated your ability to make your mortgage payments on a timely basis, our goal is to transition back to more traditional financial institutions and qualify for a new mortgage at more mainstream rates.

If you think a private mortgage may resolve a current need for funds or if you are interested in making an investment in private mortgages, please Contact Us for more details.