What's a Private Mortgage? 
Imagine you need to borrow money to buy a house or use your house's value. 

• Most people go to a big bank (like BMO, RBC, or Scotiabank) to get a loan. This is a traditional mortgage.

• But what if the bank says "no"?

A private mortgage is a loan for your house that comes from a person or a special company instead of a big bank.

Think of it like borrowing money from a neighbor or a local business owner instead of the giant bank downtown.

Why would someone in Ontario do this?

• Maybe the bank said "no" because you work for yourself (like a YouTuber!) and your money isn't the same every month.

• Maybe you need the money really fast for an emergency, and banks are too slow.

• Maybe your credit score (your "borrowing report card") needs some work.

Here's the key:

Private mortgages are often a temporary helper. Because these lenders are helping when the banks won't, their loans usually:

1. Cost more (have higher interest rates).

2. Are for a shorter time (like 1 or 2 years, not 25).

The goal is often to use the private loan for a little while, fix the problem (like build your credit), and then move to a regular bank loan later!

Want to Learn More?

Got questions or want to see if this could work for you?

Click here to talk to our team! We're happy to help.