Private Mortgages, Ottawa
Fast, flexible financing when timing or circumstances don't fit a bank's conventional guidelines, arranged by a licensed Ottawa mortgage agent.
When Speed and Flexibility Matter Most
A private mortgage comes from an individual investor or private lending company instead of a bank, and it's underwritten differently: private lenders focus primarily on a property's value and your equity position, not a rigid income and credit checklist. That makes them a genuine option when a deal needs to close in days, not weeks, or when the property or your documentation doesn't fit inside a conventional lender's box.
As an Ottawa mortgage agent with relationships across private lenders throughout Ontario, we structure these deals carefully, with a clear plan to move back to conventional financing once the immediate need is resolved. Private financing costs more than a bank mortgage, and we make sure you understand exactly why before you commit.
How Private Mortgages Work
- Lending decisions based mainly on property value and equity, not strict income/credit rules
- Typically lend up to 75-80% loan-to-value, depending on the property and lender
- Can close in days rather than the weeks a bank typically needs
- Rates run several points higher than bank mortgages, plus lender and broker fees
- Terms are usually short, 6-24 months, with a clear exit plan back to conventional financing
Every fee, disclosed upfront
Private financing has real costs. We walk through the lender fee, broker fee, and rate in plain numbers before you sign anything, no surprises at closing.
Common Reasons Ottawa Clients Use Private Financing
Time-Sensitive Closings
A great deal with a tight closing date that a bank's timeline simply can't match.
Bridging a Sale Gap
Short-term financing while you're between selling one property and closing on the next.
Unique or Non-Conforming Properties
Properties banks won't finance, unconventional construction, rural acreage, mixed-use, that private lenders will.
Other Alternative Financing Options
Private financing is one part of a broader toolkit.
Bad Credit Mortgages
B-lender and alternative options for credit challenges, often a lower-cost fit than private.
Learn moreBridge Financing
Short-term financing specifically for closing before your current home sells.
Learn morePrivate Mortgage Questions
A private mortgage is financing from an individual investor or private lending company rather than a bank or credit union. Private lenders make lending decisions based primarily on the property's value and equity position rather than strict income and credit criteria, which makes them useful for situations banks won't touch, but at a higher rate and typically shorter term.
Private mortgages are typically used for time-sensitive closings, unique or non-conforming properties, bridging a gap while selling another property, or when credit or income documentation doesn't fit a conventional lender's box. They're usually a short-term solution with a clear exit plan back to conventional financing.
Private mortgage rates typically run several percentage points higher than bank rates, and often include a lender fee and broker fee disclosed upfront. The higher cost reflects the speed, flexibility, and reduced documentation requirements, private lenders can often close in days rather than weeks.
Private lenders typically lend up to 75-80% of a property's appraised value (loan-to-value), sometimes less depending on the property type and location. The exact amount depends on your equity position and the specific lender's risk appetite.
Need Financing Fast?
Talk to an Ottawa mortgage agent who can move as quickly as your deal needs.