Private Mortgage Lender
A non-bank, non-regulated mortgage lender — typically an individual, mortgage investment corporation (MIC), or syndicate — used for borrowers who can't qualify with traditional lenders.
A private mortgage lender is an individual, small group, or mortgage investment corporation (MIC) that lends outside the federally regulated banking system. Private lenders are used when borrowers can't qualify with banks or credit unions — often due to credit issues, self-employment income that doesn't fit documentation standards, non-standard properties, or short time horizons. Rates are materially higher than bank rates (typically 8–15% in 2026) plus origination fees (typically 1–4% of the loan). Terms are usually 1–2 years, with refinancing to a bank once the borrower's situation stabilizes. Private lending is licensed provincially.
Related Terms
A loan secured against the equity in a property that already has a first mortgage — subordinated in priority and typically carrying higher rates.
A mortgage lender operating between traditional banks and private lenders — offering slightly relaxed underwriting and slightly higher rates than banks.