Private Mortgage Lending in BC
When traditional lenders say no, private lending can be a legitimate bridge to where you want to go.
Private mortgage lending isn't for everyone — but for the right situation, it's exactly the right tool. If you don't qualify with a traditional lender or an alternative lender right now, a private mortgage can provide short-term financing while you build toward a better long-term solution. I work with private lenders across BC and I'll be straightforward with you about whether it makes sense for your situation
— and what the path forward looks like.
Private lending is a bridge, not a destination. My job is to get you through the bridge as efficiently as possible and into conventional financing as quickly as makes sense.
If your financial situation is "complicated", consider the many alternative lending options available to you. Here's the plan.
Get started right away
The best place to start is to connect directly. We'll want to assess your credit situation and put a plan together to move forward. There are many alternative lenders who want to work with someone like you. Let's get you there!
Consider your options
While we all like to get the best terms available, sometimes there are reasons we don't quite fit in the standard banking system. Let's look at all your options and put a plan together to accomplish your goals.
Develop a plan
Private lending isn't meant to be a long term solution. Instead, it meets an immediate need and shouldn't be relied on long term. Let's look at your needs holistically and work towards a long term solution.
What to Expect With Private Lending
Private mortgages work differently from institutional lending. Here's what you need to understand:
- Higher rates: Private lenders charge significantly higher rates than banks or alternative lenders — typically 8–14%+ depending on risk profile and property
- Shorter terms: Most private mortgages are 1-year terms, sometimes 2-year
- Lender fees: Private lenders charge arrangement fees, typically 1–3% of the mortgage amount
- Equity-driven: Private lenders focus primarily on the property and available equity, not income
- Exit strategy required: You need a clear plan for what happens at the end of the private term — refinance, sale, or alternative lender
When Private Lending Makes Sense
Private mortgage financing is commonly used in these situations:
- Credit challenges: Recent bankruptcy, consumer proposal, or collections that prevent qualifying with traditional or alternative lenders
- Income verification issues: Self-employed borrowers who can't currently document income sufficiently for any other lender type
- Short-term bridge financing: Buying a new property before your existing one sells
- Construction or renovation financing: Short-term funds for a project while permanent financing is arranged
- Second mortgages: Accessing equity behind an existing first mortgage without breaking it
- Time-sensitive situations: When a deal needs to close quickly and traditional approval timelines won't work
Consider private lending to meet your immediate needs while you build a plan for the future. Let's do this together.
Resources to help you navigate mortgage financing and private lending.
What is a Second Mortgage?
A second mortgage can be an excellent tool that allows you to access some of your home equity without breaking your first mortgage. Learn more about how a second mortgage can be beneficial here.
Alternative Lending Provides You With Options
Alternative lending provides you with mortgage options that fall outside the normal banking channels. Learn more about the choices you have available to you.
Getting a Mortgage After Bankruptcy
If you’ve been through a bankruptcy or consumer proposal, there are several questions lenders will ask you regarding your financial situation. They'll want to know how long you’ve been discharged, if you’ve established new credit, how much money you have for a downpayment, and how much you make compared to how much you want to borrow.
Reposition Your Debts Through Mortgage Financing
If you’re a homeowner looking to optimize your finances, consider taking advantage of your home’s equity to reposition any existing debts you may have.
Credit and Mortgage Financing
Credit is the ability of a customer to obtain goods or services before payment, based on the trust that you will make payments in the future. When you borrow money to buy a property, you’ll be required to prove that you have a good history of managing your credit.
How to Handle Missed Payments
If you’ve missed a payment on your credit card or line of credit and you’re wondering how to handle things and if this will impact your creditworthiness down the road, here’s the plan for you to follow.
Frequently Asked Questions
What is a private mortgage and how is it different from a bank mortgage?
A private mortgage is funded by a private individual or company rather than a regulated financial institution. Private lenders focus primarily on the property and available equity rather than your income and credit score. They charge higher rates and fees to compensate for the added risk, and terms are typically short (1 year). They're a legitimate tool for specific situations — but not a long-term solution.
What interest rates should I expect with private lending in BC?
Private mortgage rates in BC typically range from 8% to 14% or higher depending on the lender, the property, the loan-to-value ratio, and your overall risk profile. There are also lender fees typically ranging from 1–3% of the mortgage amount. I'll give you a realistic picture of what your specific situation will cost before you commit to anything.
What is a second mortgage and when does it make sense?
A second mortgage sits behind your existing first mortgage and allows you to access your home equity without breaking your first mortgage. This avoids any prepayment penalty on your first mortgage. Second mortgages typically carry higher rates than first mortgages but can be a cost-effective way to access equity in the short term — especially if you have a great rate on your first mortgage that you want to protect.
How quickly can a private mortgage be arranged?
Private mortgages can often be arranged significantly faster than institutional financing — sometimes within days if the property and equity position are straightforward. This makes them useful in time-sensitive situations. That said, faster doesn't mean skipping due diligence. I'll make sure the terms are clear and the exit strategy is solid before we proceed.
What happens when my private mortgage term ends?
This is the most important question to ask before you take out a private mortgage. Most private mortgages are one-year terms, and your goal should be to transition to conventional or alternative financing by the time it matures. I work with you on that transition from day one — reviewing your credit, income, and equity position so we have a realistic plan for what comes next.
