Private mortgage rates
priced on equity —
funded in days.
Private firsts typically run ~7-10% and seconds ~9-13%, plus fees — all disclosed in writing. We map your exit to bank pricing before you sign.
Private mortgage rates in Canada typically run 7.5–13% for first-position loans, with second-position rates starting around 9.5–13%+. Rates are driven by the lender tier (MIC vs. individual), loan-to-value, and property type. CMHC data shows the 25 largest MICs averaged 9.6% on single-family first mortgages in Q3 2025. All fees must be disclosed in writing under Ontario's MBLAA before you commit.
Four things to know
about private rates.
Private is a premium bridge — priced on equity, with a planned end date.
Priced on equity, not credit
Private pricing is risk-and-position based: your loan-to-value and your position on title drive the rate far more than your bureau score.
Typical ranges, disclosed in writing
Private firsts run ~7-10% and seconds ~9-13%, plus roughly 1-2% lender and 1-2% broker fees — every figure disclosed before you sign.
Fast, when speed matters
Private lenders fund in days and look at the property and your LTV rather than re-running you through the stress test — useful when the banks decline or you're against a deadline.
It's a bridge, not a forever rate
Private is meant to be a 12-18 month bridge back to A or B pricing — we map the exit (credit rebuild, seasoning, income docs, sale) before you sign.
How private mortgage
financing works.
Equity first, costs second, exit mapped from day one.
Share your equity picture
Tell us your property value, what you owe, and why you need the funds. We identify the right position — first or second — and which lenders match your scenario. Takes about 5 minutes.
We disclose every cost in writing
Rate range, lender fee, broker fee, legal, and appraisal — all disclosed before you commit. We model the all-in cost so you can compare the private route against your real alternatives on real numbers.
Fund, then plan the exit
Once the private mortgage closes, we set the milestones for your exit: credit rebuild, income documentation, or property seasoning — so the refinance to bank pricing happens on schedule, not by accident.
When private financing
is the right tool.
Tap any situation below to see how we approach it.
If you’re…Your credit is too bruised for a bank or B-lender
Your credit is too bruised for a bank or B-lender
Private lenders look at equity, not your credit score. We price on your LTV and map a 12-18 month credit-rebuild plan to get you back to A pricing.
See bad-credit optionsIf you’re…You're self-employed and can't prove income to a bank
You're self-employed and can't prove income to a bank
Private bridges BFS (business-for-self) files A and B lenders can't place yet — funded on equity, no T4 required.
Self-employed optionsIf you’re…You need to stop a power of sale or foreclosure
You need to stop a power of sale or foreclosure
Fast private financing — often in days — to halt enforcement, pay arrears, and reset. We've done this many times.
Stop a power of saleIf you’re…You need a second mortgage without breaking a cheap first
You need a second mortgage without breaking a cheap first
A private second leaves your low-rate first mortgage untouched and prices the higher rate only on the smaller amount you need — often cheaper than re-pricing everything.
Model a second mortgageIf you’re…You need a short bridge to a sale or refinance
You need a short bridge to a sale or refinance
Private bridge financing covers the gap when timing doesn't line up — closing on a purchase before your existing property sells, or bridging a renovation before the A-lender will fund.
Explore bridge optionsIf you’re…You want to map the exit before you take the private
You want to map the exit before you take the private
We model the refinance back to bank pricing before you take the private — so you go in with a clear number and a realistic timeline.
Model the exit refinanceFirst vs second —
the real cost difference.
A private second often costs less than a private first when you have a cheap mortgage to protect.
- Property value$700,000
- New private 1st$420,000
- Rate (illustrative)~8.5% fixed
- Monthly interest~$2,975
- Lender + broker fee~$12,600 (3%)
- LTV60%
- Property value$700,000
- Existing 1st balance$300,000 @ 4.2%
- Private 2nd needed$120,000
- Rate (illustrative)~11% fixed
- Monthly interest~$1,100
- Saving vs private first~$1,875/mo
Illustrative only — rates, fees, and savings will differ based on your equity and position. Every figure disclosed in writing before you commit. Try the second mortgage calculator.
Common questions,
clear answers.
Rates, fees, first vs second, and the exit plan — answered plainly.
What is a typical private mortgage rate?
Private pricing is risk-and-position based, not a single posted number. As a guide, a private first mortgage at a conservative loan-to-value typically runs in the ~7-10% range, while a private second mortgage — which sits behind your existing first — typically runs ~9-13%. On top of the rate you'll usually see roughly 1-2% lender and 1-2% broker fees, plus legal and appraisal costs. These are illustrative market ranges (September 2026), not a live quote. For reference, CMHC reported that the largest private lenders averaged about 9.6% on single-family mortgages in Q3 2025. Your actual rate is set by your equity and position and is always disclosed in writing before you sign.
Why are private rates higher than bank rates?
Banks lend on income and credit at the lowest cost of funds; private lenders lend on equity and take more risk, often on files banks decline. They fund fast — typically in days — and look at the property and your loan-to-value rather than re-running you through the stress test. That speed, flexibility, and added risk is what the higher rate pays for. Private is meant to be a short 12-18 month bridge, not a forever rate.
What fees come with a private mortgage?
Beyond the interest rate, expect roughly a 1-2% lender fee and a 1-2% broker fee, plus third-party legal and appraisal costs. Every one of these is disclosed in writing before signing — no surprises at closing. We walk you through the all-in cost so you can compare the private route against your alternatives on real numbers.
How do I get off a private rate and back to a bank rate?
That's the whole plan. A private mortgage is a 12-18 month bridge with a mapped exit to A or B (bank/alt) pricing. Going in, we set the milestones — rebuild credit, season the property, document income, or complete the renovation/sale — so that by maturity your file qualifies for a lower-cost lender. We line up that exit refinance before the term ends so you move off the private rate on schedule, not by accident. Talk to us about your exit plan.
We’ll try to beat your rate.
If we can’t, we pay you $500.¹
¹ Rate Beat: eligible Big-6 bank written offers only · same product, term & amount · $500 paid to you or your nominated charity at closing · conditions apply
Private mortgage rates by city
Private mortgage rates vary by lender and market — Mortgage Squad advisors across Ontario help you compare options.