Acknowledged as the biggest investment most people will make in their lifetime, the purchase of a residence is also what most young people aspire to, so what do you do if you simply don’t qualify for a traditional mortgage?

Government regulations on mortgages and qualification requirements stringently applied by mainstream lenders in Canada are making it increasingly more difficult for people to qualify for a standard mortgage.

Private Mortgage Lenders’ Rates

Private investors are prepared to trade higher risk for higher returns. They realise that the strict criteria applied by the banks is preventing people who are able to pay back loans from borrowing. Those prepared to pay the higher lenders’ rates may qualify for a private mortgage.

Private mortgages make up around four to five percent of the property loan market in Canada. These loans are generally taken over the shorter term, somewhere between one and three years.

The borrower is not expected to pay back the principal. Paying only the interest means that the amount that has to be paid monthly is reduced. Because this is a short-term mortgage, the borrower should have a long-term plan in place.

When It Is Difficult to Get a Mortgage Through Mainstream Banks

Circumstances that create the need for private mortgage lenders.

  • The borrower does not qualify for a mortgage due to poor credit history
  • Funding for unconventional homes that the banks will not cover
  • The borrower is self-employed and unable to provide proof of steady income
  • The borrower is recently employed, or temporarily out of employment
  • Non-residents

Private mortgages may make it possible to take advantage of circumstances.

  • Second mortgages for home improvements prior to selling
  • Second mortgages to top up the first where the buyer cannot make up the difference between the seventy or eighty percent mortgage and the purchase price of the property
  • For construction projects to circumvent restrictions placed on these projects by mainstream funders.

Private mortgages are normally more quickly and easily obtained than conventional mortgages as the providers of these funds are happy to use the property as security. The decision will be based on the intrinsic value and location of the property. The creditworthiness and income of the applicant is less important to the lender as the property secures the mortgage. Typically, a mortgage will only cover 85% of the value of the property, and the borrower will be expected to make a down payment. The bigger the down payment the less the risk to the investor.

Call Us Today +1 866 921 8890

Questions? We’re here to help!

Mortgage Offers

...pick the one thats right for you.

Find Out More

We Pay Your Legal Fees!

When You Close a Mortgage With Us

WE PAY YOUT LEGAL FEES,
$1000 VALUE

Get $1000 Cash Back

When You Close a Mortgage With us

RECEIVE $1000
CASH BACK

$1000 Referral Fee

When They Close a Mortgage With us

REFER A FRIEND AND GET
$1000

Featured Rates

FIXED

LenderRateTerm
Mortgage Lendwise RateLendwise

2.39%

5-Year
Mortgage First National Bank RateFirst National Financial

2.69%

4-Year
Mortgage RMG RateRMG Mortgages

2.64%

3-Year
Mortgage Street Capital RateStreet Capital Bank

1.99%

2-Year
Mortgage TD Bank RateTD Bank

2.69%

1-Year

VARIABLE

TermRate
5-Year Variable

2.85%

3-Year Variable

3.10%

OTHER

TypeRate
Line of CreditStarting at

3.00%

Equity LoansStarting at

5.99%

Private MortgagesStarting at

5.99%

Private Mortgage Lenders’ Interest Rates

As with all investments, the private lender will expect to receive higher interest rates for higher risk so the private mortgage does come at a cost. The interest rates are usually between ten and eighteen percent per annum. Obtaining the private mortgage can also run up additional costs of between one and four percent of the total loan amount for legal, broker and lender fees, but they are a great solution for home owners who are facing foreclosure, who have property tax arrears or who need an opportunity to improve their credit rating.

OUR CUSTOMERS LOVE US

My wife and I recently purchased our first place, so we started to look for a mortgage broker. Neither of us really knew what we were doing, so it was important to us that we could find someone who could guide us through the whole process. After some searching we finally stumbled upon the guys at certified mortgage broker We worked with leon and his team, got a great rate and they took their time to explain and guide us through the whole process. Great rates and great service. Would absolutely recommend.
Linderman Beadles
Linderman Beadles
06:16 26 Feb 18
Got tired of sow service and mediocre rates from my bank, so I started looking for a mortgage broker. Had some family friends recommended Leon and his team, so decided to check them out. Was very impressed with Leon, he guided me through step by step, recommended a mortgage and I ended up switching to him. My rate is better and he always answers call and emails right away.
Gina Carroll
Gina Carroll
05:06 28 Feb 18
Was looking for a new mortgage broker, my old one moved so had to find someone else to work with. Didn't really know how to go about it so just started googling. After some searching and talking, decided to go with the guys at certified mortgage broker. No one could match their rates, plus their customer service is honestly some of the best i’ve seen.
Deane Laflamme
Deane Laflamme
04:40 27 Feb 18
My wife and I recently purchased our first place, so we started to look for a mortgage broker. Neither of us really knew what we were doing, so it was important to us that we could find someone who could guide us through the whole process. After some searching we finally stumbled upon the guys at certified mortgage broker We worked with leon and his team, got a great rate and they took their time to explain and guide us through the whole process. Great rates and great service. Would absolutely recommend.
Stephnie Boyles
Stephnie Boyles
13:59 15 Nov 17
Got tired of sow service and mediocre rates from my bank, so I started looking for a mortgage broker. Had some family friends recommended Leon and his team, so decided to check them out. Was very impressed with Leon, he guided me through step by step, recommended a mortgage and I ended up switching to him. My rate is better and he always answers call and emails right away.
Billye Peralta
Billye Peralta
13:38 19 Nov 17
Was looking for a new mortgage broker, my old one moved so had to find someone else to work with. Didn't really know how to go about it so just started googling. After some searching and talking, decided to go with the guys at certified mortgage broker. No one could match their rates, plus their customer service is honestly some of the best i’ve seen.
Moore Hoover
Moore Hoover
02:25 16 Nov 17
We worked with Leon and he provided a thorough and a professional process in re-financing our mortgage. Communication was consistent, he was easy to reach and documents were processed quickly. Most importantly, we got a great rate that has us savings hundreds of dollars per month on our home. These guys really know what they're doing.
Melissa Brown
Melissa Brown
00:12 18 Jul 17
As third time home buyers we couldn't be happier with the service we got from Certified mortgage broker. The team did a great job working on our loan. Everything was fast, easy and transparent. Probably the best mortgage experience i’ve ever had.
Riley Clements
Riley Clements
15:27 20 Jul 17

CONTACT US

Give us a call or email us to schedule your appointment

Certified Mortgage Brokers Across Canada

…by providing award winning customer service to each and every single client.