Private mortgages are often misunderstood. While they're associated with credit problems, many borrowers use private lending for strategic reasons. This guide explains when private mortgages make sense and how to use them wisely.
What Is Private Lending?
Private mortgages are loans from individuals or investment companies rather than banks or credit unions.
How Private Lending Differs
Protecting Yourself
- Work with licensed mortgage brokers
- Get everything in writing
- Use a real estate lawyer
- Understand all fees before committing
- Have realistic exit strategy
FAQ
Q: Is private lending legal in Canada?
A: Yes, completely legal. Private lending is a legitimate part of the mortgage market.
Q: How fast can private mortgages fund?
A: Often 3-7 days. Some can fund in 24-48 hours for urgent situations.
Q: Can I get a private mortgage on a rental property?
A: Yes—private lenders finance rentals, often more easily than primary residences.
Q: What happens if I can't refinance at the end of the term?
A: You may need to renew at potentially higher rates, find a new lender, or sell the property.
Q: Do private mortgages report to credit bureaus?
A: Most do not, which means they won't help rebuild credit directly.
What's Next
Private mortgages can be valuable tools when used strategically. Connect with our team to explore whether private lending fits your situation—and develop a solid exit plan.
Explore Private Lending Options
We'll help determine if private lending is right for you and develop a clear exit strategy.
