Private Mortgage Broker in Oakville
When the Bank Says No, a Private Mortgage Can Say Yes
The bank turned you down. Or the timeline is too tight. Or your income looks different on paper than it does in real life. Whatever the reason, you are here because conventional financing did not work, and you need to know what comes next.
A private mortgage is not a last resort. It is a short-term loan backed by your home’s equity. A bridge. Homeowners across Markham, Vaughan, and Richmond Hill use them to solve immediate problems while building a path back to conventional lending.
Why Choose Deepika
With 12 years of mortgage experience, a background at RBC, TD, and BMO, and a strong track record with more complex files, Deepika helps clients explore private mortgage options with clear guidance on costs, timing, and exit strategy when traditional financing is not the right fit.
Built for Speed. Built on Equity.
Private mortgages play by different rules. Here is what that means for you:
3-5 days
Typical closing time. Some deals fund in 48 hours.
Up to 85%
Loan-to-value. Most approvals fall in the 65% to 80% range.
6-36 months
Typical term length. Interest-only payments throughout.
Need to move fast? Find out if you qualify.
How a Private Mortgage Works
A private mortgage is funded by individual investors, syndicates, or mortgage investment corporations. Not a bank. Not a credit union. These lenders sit outside the federal stress test, which means more flexibility and faster decisions.
The loan is secured against your property. Same as a conventional mortgage. The difference? What matters for approval. Private lenders care about your equity and whether the property is marketable. Your credit score is secondary. Your T4 is often not required.
How repayment works: Interest-only payments each month. The principal is repaid at the end of the term, usually through a sale, a refinance into a conventional mortgage, or another exit strategy agreed on upfront.
Who Uses a Private Mortgage in Oakville
It is not about financial failure. It is about a situation that does not fit the bank’s checklist right now. The property is solid. The plan is sound. The paperwork just does not line up.
What a Private Mortgage Costs
More than a bank mortgage. That is the trade-off for speed and flexibility. Know the full picture before you sign.
Interest rates typically range from 6% to 12% for first mortgages and 8% to 18% for second mortgages. On top of interest, expect a lender fee (1% to 3% of the loan), a broker fee, an appraisal ($300 to $500), and legal fees ($1,000 to $2,000). These are usually deducted from loan proceeds at closing.
Because payments are interest-only, monthly costs stay lower than an amortizing mortgage. A $200,000 private first mortgage at 8% runs roughly $1,333 per month.
How Much Can You Borrow
In Oakville, homeowners with strong equity may be able to access significant funds through a private mortgage. For example, on a $1.5M property with a $600,000 existing mortgage, a private first mortgage could potentially unlock roughly $375,000 to $525,000 before fees, depending on the lender’s maximum loan-to-value, the property, and the strength of the exit strategy.
Private Mortgage Pros and Cons
Powerful in the right situation. Not without risk. Here is what to weigh:
Benefits
- Approval based on property equity, not income or credit
- Funding in as few as three to five business days
- Open to self-employed, newcomers, and bruised credit borrowers
- Flexible terms tailored to your exit strategy
- Can prevent power of sale, clear arrears, or close a time-sensitive deal
- Interest-only payments keep monthly costs lower during the term
Considerations
- Rates are significantly higher than bank mortgages
- Lender and broker fees add to total borrowing cost
- Terms are short (6 months to 3 years), so you need a clear exit plan
- Interest-only payments do not reduce your principal
- Not all private lenders are well regulated, so a licensed broker is essential
- If you cannot repay at term end, the lender may pursue power of sale
Which Financing Option Makes the Most Sense?
Not everyone who gets declined by a bank needs a private mortgage. Depending on your equity, timeline, and goals, another option may be a better fit. This quick comparison shows where each path tends to make the most sense.
| Option | Usually best for | What to know |
|---|---|---|
| Bank mortgage | Borrowers with strong credit, stable income, and a straightforward file | Usually the lowest-cost option, but the hardest to qualify for |
| Private mortgage | Homeowners who need fast approval, have strong equity, or do not fit conventional rules right now | Fast and flexible, but higher cost and usually short term |
| Mortgage refinance | Homeowners with enough equity who want to restructure debt or pull out funds through a new mortgage | Can cost less than private lending if you qualify |
| HELOC | Homeowners who want flexible access to equity without replacing the full mortgage | Useful when available, but qualification can be stricter |
Not sure which path fits? Call Deepika to walk through your situation. She will tell you honestly which option makes the most sense for your timeline, equity, and goals.
Frequently Asked Questions
Talk to Deepika About a Private Mortgage in Oakville
A bank decline is not the end of the conversation. If you have equity in your home and a situation that needs solving, there may be a clear path forward. A free consultation lets you find out what is available, what it will cost, and whether it makes sense for your timeline and goals.