What Is a Private Mortgage?
A private mortgage is granted by individual investors or private funds rather than banks or credit unions. These lenders primarily evaluate the property's value and available equity, rather than credit score or income.
It's an ideal transition solution for people who don't qualify for institutional loans but need financing to purchase, retain, or stabilize their property.
Who Is the Private Mortgage For?
Typical Costs of a Private Mortgage
Private Mortgage in Your City
Frequently Asked Questions
Who can benefit from a private mortgage in Quebec?+
Private mortgages suit people with bad credit (score below 600), self-employed workers with variable income, homeowners with recent bankruptcy, and anyone turned down by traditional institutions.
What are the rates for a private mortgage?+
Private lender rates in Quebec generally range from 8% to 18% per year, depending on property value, loan amount, and borrower profile. These rates are higher than a bank but provide fast access to financing.
What are the fees for a private mortgage?+
File fees range from $500 to $2500 depending on the lender and complexity. Legal fees ($800 to $1,500) are added for mortgage registration. Our broker details all fees before any commitment.
How long does it take to get a private mortgage?+
Private lenders can typically approve and release funds in 5 to 10 business days, compared to 3 to 4 weeks for a traditional institution. This is one of the great strengths of private financing for urgent situations.
Is a private mortgage a long-term solution?+
No. A private mortgage is a transition solution of 1 to 3 years. The goal is to rebuild your credit file during this period, then refinance with an institutional lender at more advantageous rates.
Can you get a private mortgage with an undischarged bankruptcy?+
Yes. Some private lenders accept applications with undischarged bankruptcy if the property value offers sufficient equity (generally 25% to 35% down payment or accumulated equity).