Private Mortgage & Bridge Financing
Private mortgages cost more. We're direct about that. They also close in days, not weeks — and sometimes that's exactly what the situation requires.
Discuss Your SituationA private mortgage is funded by an individual investor or a Mortgage Investment Corporation (MIC) rather than a chartered bank, credit union, or trust company. The investor is lending their own capital and setting their own terms. Because there's no institutional underwriting committee or regulatory deposit-taking structure involved, they can move quickly and approve situations that institutional lenders would decline.
What it isn't: a long-term financing solution for most borrowers. Private mortgage rates in BC typically range from 8-14% annually, depending on the loan-to-value, property type, and borrower profile. There's also a lender fee — typically 1-3% of the loan amount — that comes off the top at funding. These costs are real and significant. Anyone who minimizes them in the pitch should be viewed with skepticism.
Private mortgages serve specific situations where the cost is justified by the alternative:
We won't place a private mortgage without a clear, realistic exit plan. Private lending is a tool for a defined window of time — typically 6-24 months — and the plan for what happens at the end of that window needs to exist before you enter it.
Common exits: refinancing to a B lender once the credit event has aged, selling the property, or waiting for a change in income or qualification picture that opens institutional financing. If the exit is "we'll figure it out," that's not an exit — it's a plan to pay 12% indefinitely, which is not in your interest.
We'll tell you plainly if your situation has a realistic exit or not. If it doesn't, we'll tell you that too rather than placing you in a product that traps you at a rate that compounds the original problem.
Considering private vs. bad credit: not every declined conventional application needs private lending. B lenders and alternative lenders occupy the space between A and private, with rates between the two. See our alternative mortgage page — B lending is often the right answer for situations that look like they need private but actually qualify for better terms with the right lender match.
Private deals need to move fast. Tell us what you're working with and we'll tell you what's possible and what it actually costs.
Book an Urgent ConsultationCredit issues? Check this first:
Alternative Lending Options →Common questions
Rates typically range from 8-14% annually. There's also a lender fee of 1-3% of the loan amount paid at funding. On a $400,000 private second mortgage at 10% with a 2% lender fee, you're paying $8,000 upfront and roughly $3,333/month in interest. It's expensive — and it should be used as a short-term tool, not a long-term solution.
Approvals in 24-72 hours. Funding in 5-7 business days with a cooperating notary. Speed is the reason to use private lending — if you have more time, explore B lenders first, because the rate difference is significant.
We won't place you in a private mortgage without one. The most common exits: refinancing to conventional or B lending once your bureau or income situation improves, selling the property, or resolving the bridge scenario. Private lending is a bridge, not a destination.
Private deals are time-sensitive by definition. Tell us what you're working with.