Private Mortgages
Not every financial situation fits neatly into a bank's checklist — and that doesn't mean you don't deserve a mortgage.
Private mortgages exist for exactly these moments. Whether you're self-employed with income that's hard to "prove" on paper, dealing with a temporary credit setback, need funds quickly to close on a property, or have a property that doesn't fit a traditional lender's rigid criteria, a private mortgage can bridge the gap.
Why Use a Private Mortgage?
No income verification. Private lenders don't require any income verification.
Bad credit isn't a dead end. A low score or past credit issues won't automatically disqualify you. Private lenders look at the full picture, including your equity and your plan.
Speed when you need it. Private mortgages can close remarkably fast. We've had a deal funded in as little as 3 days — a timeline that's simply not possible with a traditional bank.
Room for unique situations. Half-interest mortgages, unique properties, or properties in locations banks tend to avoid — private lending is built to handle the scenarios conventional financing can't.
Common Uses for a Private Mortgage
- Debt consolidation
- Business investments
- Renovations
- Property purchases
- Preventing foreclosure
What Are the Rates for Private Mortgages?
Private mortgage rates are higher than bank rates, reflecting the flexibility and speed they offer:
- 1st mortgages start from 5.25%
- 2nd mortgages start from 9%
Your exact rate depends on a few factors: the loan-to-value ratio, how marketable the property is, and your credit profile.
What Fees Are Involved?
Private mortgages come with a different fee structure than bank financing. Here's what to expect:
| Fee | Amount |
|---|---|
| Appraisal fee | $300 – $600 |
| Lender & broker fee (one-time) | ~2% for 1st mortgages, ~4% for 2nd mortgages (can vary) |
| Legal fees | $2,500 – $4,000 |
| Renewal fee | $295 – 1.5% of loan amount |
A few important notes:
- The appraisal fee is the only cost typically paid upfront.
- Some lenders may request a legal fee deposit just before your file is sent to the lawyers.
- All other fees are deducted from the mortgage proceeds at closing — not paid out of pocket.
- On legal fees, borrowers cover the cost of both their own lawyer and the lender's lawyer.
What Is the Maximum Loan-to-Value (LTV)?
In the current BC market, maximum LTV guidelines are:
- Condos: up to 65%
- Townhouses & houses: up to 75%
- Up to 80% in select cases
In stronger market conditions, private mortgages up to 90% LTV have been arranged — availability shifts with the market.
What Happens When the Term Ends?
A common worry with private mortgages is getting "stuck" — but that's not how they're meant to work. Private mortgages are typically short-term (often 1–2 years) and designed as a bridge, not a permanent solution.
What's the exit plan? Most borrowers use the term to fix the issue that kept them from bank financing — building income documentation, repairing credit, or letting a property season — then refinance into a traditional bank mortgage at a lower rate once they qualify.
Can I renew instead? Yes. If you're not quite ready to move to a bank yet, many private mortgages can be renewed for another term (see the renewal fee above) rather than requiring an immediate exit.
Will I need help transitioning? That's part of the plan from day one. We map out your path back to conventional financing before your private mortgage even closes, so the term has a clear purpose and an end date — not an open-ended arrangement.
Our service area:
Vancouver, North Vancouver, West Vancouver, Langley, Surrey, Delta, Maple Ridge, New Westminster, Port Coquitlam, Richmond, Nanaimo, Kelowna, West Kelowna Vancouver, Peachland, Victoria, Kamloops, Burnaby and in small towns in BC.
