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Mortgage Squad Advisors
Private Mortgage

When banks say no — and you need a yes today.

A short-term mortgage based on your home's equity, not your credit score. Funded in 7–21 days, with a clear 12–24 month plan to get you back to a regular bank mortgage. Every fee disclosed in writing before you sign.

Funded in 7–21 daysBased on home equityUp to 75% (1st mortgage)Up to 85% (with 2nd)Clear exit planAll fees disclosed
5-star rated| FSRA #13737| 5-min pre-qualification

Written by the Mortgage Squad Advisors Editorial Team · Reviewed by the Principal Broker, FSRA #13737 · Updated June 2026

Bank said no? Need cash fast?
Funded in 24–48 hours.
A short-term mortgage based on your home's equity, not your credit score. Every fee disclosed in writing before you sign.
Funding window
48hrs
avg approval to funded
Max LTV
75-85%
Term
6-24 mo
Exit
A-lender
We use private as a bridge — never the destination. Exit plan to A or B-lender is on every file.
Get pre-approved Equity check
Maya · AI · 24/7
When does a private mortgage make sense?
5-star rated| FSRA #13737| 50+ langs

We arrange private mortgages from individual lenders, MICs (Mortgage Investment Corporations), and family-office capital. We always disclose the rate, fees, term, and exit plan upfront — and we always model the path back to A-lender pricing.

What you get

Why Canadians choose Mortgage Squad Advisors.

Funding in 7-21 days
Equity-based (income/credit less important)
Up to 75% LTV on first mortgages
Up to 85% combined on second mortgages
No income confirmation in many cases
Stops power of sale, bridges purchases, funds renovations
All fees disclosed upfront in writing
We map the exit to A-lender pricing as part of the original deal
Instant check · no credit pull

How much equity can you tap?

Private seconds typically reach ~75% combined LTV — fast, equity-first.

$200,000
Accessible equity (estimate)
Private 2nd ≈ 8–12% + 1–2% fees
Typical cost
Estimates only — a licensed advisor confirms your file. FSRA #13737.

Or ask Maya directly:

Do I qualify for a private mortgage?What documents will I need?How fast can this close?
Maya · 24/7 AI advisor

Question about private mortgage? Maya answers instantly in 50+ languages.

Chat Call
How it works

Three simple steps, no pressure.

1

Equity Confirmation

We order an appraisal (or accept recent one). LTV determines what's possible.

2

Structure

First or second mortgage? Open or closed? 6-12-18 month term? We pick what serves the exit.

3

Fund + Plan The Exit

Close. We track your file and refinance you into A-lender pricing as soon as your story qualifies.

Run the math first

What is a private mortgage — and when is it actually the right tool?

A private mortgage is equity-based lending. The lender underwrites your home, not your pay stubs or your credit score. If there's enough equity and a clear plan, the deal can fund in days — not the weeks a bank takes. That speed and flexibility is the whole point.

It's the right tool in three situations. First, when a bank or B-lender has declined you but you have real equity — self-employed income that doesn't show clean, recent bruised credit, or no Canadian credit history yet. Second, when you need money fast: a firm closing, a power-of-sale deadline, CRA arrears that have to clear now. Third, as a deliberate bridge — a short stay in private financing that buys you the 12–18 months needed to repair the file and refinance back to A-lender pricing. It is never meant to be permanent.

How do private lenders price a deal, and what does it really cost?

Private pricing is risk-and-position based, and it is always fully disclosed in writing before you sign — rate, lender fee, broker fee, term, and exit. Two numbers drive everything: loan-to-value and position. A first mortgage at conservative LTV is the safest spot, so it prices lowest — typically in the 7–10% range. A second mortgage sits behind your existing first, carries more risk, and typically runs 9–13%. These are general ranges, not a live quote; your actual rate depends on equity, property, and file.

On top of the rate sit fees. Expect a lender fee of roughly 1–2% and a broker fee of roughly 1–2%, plus legal and appraisal costs. We put every dollar in writing up front. No surprise charges at closing, no fee buried in the rate — you see the full cost of the money before you commit.

MIC vs. individual private lender — which is more reliable, and how do I choose?

Private capital comes from two main sources, and the difference matters. A MIC — Mortgage Investment Corporation — is a pooled, securities-regulated fund with multiple investors, formal underwriting, and predictable processes. Because it answers to regulators and shareholders, a reputable MIC is less likely to renege at the eleventh hour or change terms after commitment. For most borrowers, that reliability is worth a great deal.

Individual private lenders are people lending their own money. They can be faster and more flexible on an unusual file, and sometimes cheaper — but quality varies, and a deal can fall apart if one person changes their mind. The right answer depends on your file: speed, property type, position, and how unconventional the story is. We carry both in our network of 100+ lenders, and we match you to the source that actually closes — not just the one that says yes first.

What's the exit plan — and how do you engineer the refinance back to a bank?

A private mortgage without an exit is a trap. We build the exit on day one, because the term is short — usually 12 to 18 months — and you need to be out before it matures. The exit is the specific, written plan for what fixes the file so a B-lender or A-lender will take you next.

That plan is concrete. If the problem is bruised credit, we schedule the payment history and utilization changes that lift your score into B or A territory. If it's self-employed income, we time the exit to two clean Notices of Assessment. If it's CRA arrears or collections, the private money clears them and the refinance re-prices you once you're clean. We track the file every quarter against that plan, so the day you qualify, we move — turning a 9–12% bridge into a far cheaper bank mortgage. Anything past 24 months means we missed a window, and we don't miss windows.

What situations does a private mortgage actually solve?

Private financing is built for the files national generalists won't touch. Self-employed and business-for-self borrowers whose real income doesn't show on a T4 — private is often no-income-doc and equity-based, so the messy paperwork stops being the deal-breaker. Newcomers to Canada with no domestic credit history but a solid down payment or strong equity. Borrowers with bruised credit who need a bridge while they rebuild.

It also solves problems with hard deadlines. Stopping a power of sale before the property is lost. Clearing CRA arrears or property-tax arrears that block any prime lender. Funding a fast, firm closing when the bank can't move in time. Pulling equity for a renovation or a debt consolidation that an A-lender declined. As FSRA-licensed (#13737) specialists in complex and alternative files — with service in 50+ languages — this is the work we do every day, and we map the way back out from the start.

FAQ

Common questions, answered.

Don’t see yours? Ask Maya — instant answer, any time.

How fast can a private close?
7-21 days from binding offer to funding. Same-day commitment letters are achievable on clear files.
What's a typical rate?
First mortgages: 7-10%. Second mortgages: 9-13%. Plus 1-2% lender fee + 1-2% broker fee. All disclosed in writing before signing.
What's an MIC?
Mortgage Investment Corporation — a regulated pool of investor capital lent on private mortgages. Larger MICs are more institutional and reliable than individual lenders.
Will it hurt my credit?
A private mortgage reports differently — sometimes not at all. We disclose the credit-impact specifics for every lender.
How long should I be in a private mortgage?
Goal: 12-18 months. Anything past 24 months means we missed an exit window. We re-evaluate every quarter.
Can I do a private second behind my A-lender first?
Yes — common when you need equity but don't want to break your low first-mortgage rate. Combined LTV typically capped at 80-85%.
Are private mortgages regulated?
Brokerages and brokers are licensed under MBLAA / FSRA. Lenders themselves vary — MICs are securities-regulated; individuals lend at their own discretion. We only place clients with vetted lenders.
What's the worst-case scenario?
If you can't pay or refinance at term end, the lender can issue Notice of Sale (Ontario) within ~60-90 days. That's why the exit plan is non-negotiable.

Related products

Second mortgagePower of SaleBad CreditA vs B vs private lenderAlternative Lending

Related guides

Go deeper on this topic.

5 Signs You Need a Private Mortgage in Canada (and 3 Cheaper Options to Try First) (2026)A-Lender vs B-Lender vs Private Mortgage: 6 Factors That Decide Where You Fit (2026)

Ready when you are.

No obligation and no credit check to start. Maya answers right away, and a licensed advisor steps in whenever you'd like.