Private Mortgage Financing Solutions Across Canada
Private Mortgage Refinancing
Explore private mortgage refinancing to restructure existing debt, address mortgage maturities or access available property equity. Financing options for eligible homeowners, investors and borrowers who may not meet traditional lending requirements.
Second Mortgages & Home Equity
Access available property equity through eligible private second mortgage solutions. Explore financing for debt consolidation, home improvements, business needs and other approved purposes, subject to property valuation and lender requirements.
Short-Term & Bridge Financing
Explore short-term private mortgages and bridge financing for property purchases, refinancing deadlines and transitional financing needs. Solutions depend on available equity, security, repayment strategy and lender approval.
Explore Our Private Mortgage Financing Solutions
Private mortgage financing in Canada provides an alternative borrowing option for homeowners, real estate investors and property owners who may not qualify for conventional bank mortgages or require a shorter-term financing solution. True North Financing helps eligible borrowers explore private mortgage options based on property equity, available security, repayment capacity and lender requirements.
Whether you are refinancing an existing property, seeking a second mortgage, consolidating debt or arranging bridge financing, private lending may provide additional flexibility. However, private mortgages typically involve higher interest rates, lender fees and shorter repayment terms than conventional financing. A realistic exit strategy is essential.
Private Mortgage Refinancing Solutions
Private mortgage refinancing may assist eligible property owners who need to replace an existing mortgage, access available equity or restructure debt. Private lenders may place greater emphasis on property value, loan-to-value ratio and the proposed repayment plan, although borrower income, credit history and other financial circumstances may still be reviewed.
✓ Existing Mortgage Refinancing
Explore private refinancing solutions for eligible residential and commercial properties, including mortgage maturity situations, existing debt restructuring and borrowers who do not meet conventional lender criteria.
✓ Private Mortgage Equity Take-Out
Property owners may explore private mortgages to access available equity for eligible home improvements, business requirements, property investments or other approved purposes, subject to property valuation and lender policies.
✓ Debt Consolidation Through Private Refinancing
Certain borrowers may explore consolidating qualifying debts through a private mortgage. Borrowers should assess all fees, total interest costs, the risk of securing unsecured debt against property and the ability to repay or refinance at maturity.
✓ Mortgage Arrears & Maturity Solutions
Borrowers facing mortgage arrears or an approaching maturity may explore private refinancing where eligible. Approval is not guaranteed, and additional borrowing may not resolve underlying affordability problems. Early professional advice is important.
Second Mortgages & Home Equity Financing
A private second mortgage is an additional loan secured against a property that already has a first mortgage. It may allow eligible borrowers to access available home equity without immediately replacing their existing first mortgage.
✓ Private Second Mortgage Financing
Explore second mortgage options secured against available property equity. Lenders evaluate the existing first mortgage balance, property value, total indebtedness and ability to meet repayment obligations.
✓ Home Renovation & Property Improvement Financing
Qualifying property owners may explore private equity-based financing for renovations, repairs, accessibility improvements or other property upgrades. Financing costs should be compared against conventional mortgage and home equity options.
✓ Business & Investment Equity Financing
Eligible property owners may consider financing secured by real estate for approved business or investment purposes. Borrowers should understand that their property remains at risk if loan obligations are not met.
Short-Term Private Mortgages & Bridge Financing
Private mortgages are often used for shorter-term borrowing requirements or transactions involving time-sensitive circumstances. The suitability of this financing depends on the purpose, cost, duration and reliability of the repayment strategy.
✓ Private Bridge Financing
Explore temporary mortgage financing for eligible property transactions where funds are required before expected sale proceeds, refinancing or another identified source of repayment becomes available.
✓ Time-Sensitive Property Financing
Certain private lenders may accommodate qualifying property transactions with shorter timelines than conventional lenders. Actual approval and funding depend on valuation, title, underwriting and required legal documentation.
✓ Investment Property Bridge Mortgages
Real estate investors may explore private financing for eligible acquisitions, renovations or transitional property situations, provided the repayment plan and financing costs are commercially reasonable.
✓ Construction Completion & Transitional Financing
Private financing may be considered for certain eligible projects requiring temporary capital before construction completion, property stabilization or permanent financing, subject to lender review and an acceptable exit strategy.
Who May Consider Private Mortgage Financing?
Private mortgages may be an option for eligible borrowers whose circumstances do not fit traditional lending programs. Eligibility is not automatic, and lenders must assess the security and suitability of each proposed loan.
✓ Self-Employed Borrowers
Business owners and self-employed individuals with income documentation that differs from conventional bank requirements may explore eligible private lending solutions.
✓ Borrowers with Credit Challenges
Certain private lenders may consider applicants with previous credit difficulties, depending on property equity, repayment ability, existing obligations and the proposed exit strategy.
✓ Homeowners Requiring Short-Term Financing
Homeowners with sufficient qualifying equity may explore private mortgage options for temporary financing needs, provided the loan is affordable and a credible repayment strategy exists.
✓ Real Estate Investors & Property Owners
Investors may explore financing for eligible residential and commercial real estate assets, including acquisition, refinancing and certain transitional property requirements.
Private Mortgage Eligibility & Lender Requirements
Private mortgage lenders review several factors when assessing a financing request. Some emphasize property security and equity, while others also assess income, credit, existing debt and the ability to repay.
✓ Property Value & Loan-to-Value Ratio
Lenders assess the property’s appraised value, existing mortgage balances and proposed loan amount to determine available security and overall financing risk.
✓ Property Location, Type & Condition
Property location, market demand, condition, occupancy and permitted use can influence private lender eligibility and available financing terms.
✓ Borrower Income & Financial Obligations
Even where a loan is primarily secured by property equity, lenders may review income, repayment capacity, existing credit obligations and the borrower’s overall financial circumstances.
✓ Mortgage Position & Existing Debt
For second mortgages, lenders evaluate the first mortgage balance, registered charges, property equity and priority of security interests.
✓ Exit Strategy & Repayment Plan
An acceptable exit strategy may involve selling the property, qualifying for long-term refinancing or another realistic source of funds. Borrowers should not assume that refinancing will automatically be available at maturity.
Private Mortgage Interest Rates, Fees & Terms
Private mortgage costs are determined individually and may be higher than conventional mortgage costs. Before proceeding, borrowers should review the full cost of borrowing, not only the advertised interest rate.
✓ Interest Rates & Loan Terms
Rates and terms depend on property equity, loan-to-value ratio, lender risk, borrower circumstances and the requested financing period. Private mortgages often have shorter terms than conventional mortgages.
✓ Lender, Brokerage & Legal Fees
Private mortgage transactions may include lender fees, applicable brokerage fees, legal expenses, appraisal costs and other charges. Fees and compensation should be disclosed and reviewed before committing to financing.
✓ Interest-Only Payment Structures
Some private mortgage products offer interest-only payments during the loan term, with principal due at maturity. Borrowers should ensure they can meet both ongoing payment obligations and the final repayment amount.
✓ Renewal, Extension & Early Repayment
Renewal rights, extension fees, prepayment provisions and penalties depend on the mortgage agreement. Extensions are not guaranteed and may involve additional costs.
Documents Required for Private Mortgage Financing
Depending on the lender and financing request, borrowers may need to provide:
✓ Government-issued identification and mortgage application information.
✓ Property address, ownership details and current mortgage statements.
✓ Property tax information and condominium fee details, if applicable.
✓ Income verification or supporting financial information where required.
✓ Property appraisal or other acceptable valuation documentation.
✓ Details of outstanding debts, registered liens or additional mortgages.
✓ Purchase agreement, sale agreement or refinancing documentation, where applicable.
✓ Supporting information explaining the proposed repayment and exit strategy.
Our Private Mortgage Financing Process
✓ Step 1 — Discuss Your Financing Needs
Tell us about the property, requested loan amount, existing mortgage balances, financing purpose and expected repayment timeline.
✓ Step 2 — Review Property Equity & Borrower Details
We review available property information, estimated equity, financial circumstances and the proposed exit strategy to identify potentially suitable financing options.
✓ Step 3 — Explore Private Lending Options
Where appropriate, we help evaluate available private mortgage structures and review proposed interest rates, costs, terms and repayment conditions.
✓ Step 4 — Lender Underwriting & Approval
The lender reviews the application, security, valuation, documentation and financing conditions. Any commitment remains subject to its stated requirements.
✓ Step 5 — Legal Closing & Funding
Once required conditions are satisfied and legal documentation is completed, the financing proceeds through the applicable mortgage registration and funding process.
Important Risks & Considerations of Private Mortgages
Private mortgage financing should be evaluated carefully because it can involve additional expenses and substantial financial risks. Borrowers should ensure the loan supports a sustainable financial plan.
✓ Higher Borrowing Costs
Private mortgages may have higher interest rates and fees than conventional financing. Comparing the full cost of borrowing is essential.
✓ Shorter Terms & Maturity Risk
Many private mortgages require full repayment or refinancing within a relatively short period. If the intended exit strategy fails, the borrower may face additional costs or default risk.
✓ Property Security & Default Risk
Private mortgages are secured against real estate. Missed payments or failure to repay the loan can result in enforcement proceedings and potentially the loss of the property.
✓ Dependence on Future Refinancing
A future bank mortgage or other refinancing option is not guaranteed. Changes in income, credit, property value or lending policies can affect the ability to repay a private mortgage at maturity.
✓ Independent Legal Advice & Full Disclosure
Borrowers should review the mortgage commitment, fees, repayment obligations and legal documents carefully. Independent legal advice may be required and can help borrowers understand the consequences of the financing arrangement.
Why Choose True North Financing for Private Mortgages?
True North Financing helps eligible property owners evaluate private mortgage financing with attention to financing costs, property security, borrower circumstances and realistic repayment options.
✓ Assistance exploring private refinancing, second mortgage and bridge financing options.
✓ Review of property equity, lender requirements and available financing structures.
✓ Guidance on interest rates, applicable fees, maturity dates and repayment considerations.
✓ Assistance with documentation and the mortgage application process.
For additional consumer information about mortgages and borrowing costs, visit the Financial Consumer Agency of Canada.
Private Mortgage Financing Disclaimer: Private mortgage financing is subject to lender eligibility requirements, property valuation, underwriting and formal credit approval. Interest rates, lender fees, brokerage fees, legal costs, loan amounts, terms and funding timelines vary. Private financing can carry higher costs and the risk of property loss if obligations are not met. Information on this page is general and does not constitute a financing commitment or guarantee of approval.
A private mortgage is a loan secured against real estate and provided by a private individual, mortgage investment corporation or another non-traditional lender. Private mortgages may offer alternative qualification criteria and shorter financing terms than conventional bank mortgages. However, interest rates and fees are often higher.
Private mortgage financing may be available to eligible homeowners, self-employed individuals, property investors and borrowers who do not meet conventional lending requirements. Lenders may consider property equity, location, credit history, income, existing mortgage balances and the proposed repayment strategy. Approval is not guaranteed.
Some private lenders consider applicants with credit challenges. Property equity and available security can be important factors, but lenders may also assess income, repayment capacity and existing debts. Borrowers should compare total financing costs and ensure the loan addresses their financial needs sustainably.
Equity requirements vary by lender, property type, location and the borrower's financial circumstances. Lenders commonly evaluate loan-to-value ratio (LTV), including existing mortgages and the proposed new loan. A property with stronger equity may provide more financing options, but no specific loan amount is guaranteed.
Yes. A private second mortgage is registered behind an existing first mortgage and may allow qualifying homeowners to access available equity while keeping their current first mortgage in place. Lenders assess the combined mortgage balances, property value, repayment capacity and financing costs.
Private mortgage interest rates and fees vary according to loan-to-value ratio, property location, security, borrower circumstances, loan position and term. Costs may include lender fees, brokerage fees, legal fees and appraisal expenses. Borrowers should review the full cost of borrowing and all applicable disclosures before accepting financing.
Timelines depend on the lender, property, valuation, title review and completeness of the documentation. Some private mortgage transactions may move more quickly than conventional applications, but funding is never guaranteed within a particular timeframe. Appraisals, legal work and outstanding conditions can cause delays.
Eligible homeowners may explore private refinancing or second mortgages to consolidate qualifying debts, complete renovations or access property equity for other approved purposes. Borrowers should consider fees, total interest costs and the risks of securing additional debt against their homes.
At maturity, the borrower must meet the repayment obligations outlined in the mortgage agreement. This may involve refinancing through another lender, selling the property or using other available funds. An extension or renewal is not guaranteed and may involve additional charges. A realistic exit strategy should be established before taking out the mortgage.
Private mortgages can involve higher interest rates, additional fees, shorter repayment terms and significant maturity risk. Failure to make payments or repay the loan may lead to enforcement proceedings and potentially the loss of the secured property. Borrowers should review the complete agreement, compare available alternatives and obtain independent legal advice where appropriate.