Private Mortgage Broker in Oakville
When the Bank Says No, a Private Mortgage Can Say Yes
Conventional financing may fall short when the closing is urgent, your income is difficult to document, your credit has been affected or the property falls outside standard lender guidelines.
For Oakville homeowners with sufficient equity, a private mortgage may provide short-term financing while you work toward a clear exit, such as refinancing, selling the property or paying out the loan from another confirmed source.
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 an individual investor, private lending company, or mortgage investment corporation rather than a bank. The loan is still secured against your property. The difference? A more flexible approval process.
Private lenders focus on the property, your available equity, and how the loan will be repaid. Your income, credit, and debts may still be reviewed, but they do not always carry the same weight they would with a bank.
How repayment works: Many private mortgages use interest-only monthly payments. 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. The exact cost depends on the lender, mortgage position, loan-to-value, property, term, and exit strategy.
Private first mortgage rates typically range from 6% to 12%. Private second mortgage rates typically range from 8% to 18%. Lender fees commonly range from 1% to 3% of the loan. A brokerage fee, appraisal, legal fees, and other closing costs may also apply.
Most fees are deducted from the mortgage proceeds at closing. Because payments are usually interest-only, a $200,000 private mortgage at 8% would run roughly $1,333 per month in interest. The full $200,000 principal would still be due at the end of the term.
Before you sign, Deepika will walk you through the rate, monthly payment, APR, fees, net funds you will receive, and the amount due at maturity. No surprises.
How Much Can You Borrow
Your available equity sets the starting point. The lender will also consider the property, mortgage position, amount requested, and strength of your exit strategy.
Oakville Example
Property value: $1.5 million
Existing mortgage: $600,000
Assumed private first mortgage: 65% to 75% loan-to-value
Potential funds before fees: $375,000 to $525,000
Private Mortgage Pros and Cons
Powerful in the right situation. Not without risk. Here is what to weigh:
Benefits
- Greater emphasis on property equity than conventional income or credit requirements
- 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 or credit union | Borrowers with strong credit, stable documented income, and a standard property | Usually the lowest-cost option, but the hardest to qualify for |
| Private mortgage | Borrowers with strong equity, an urgent timeline, bruised credit, complex income, or an unconventional property | Fast and flexible, but more expensive, usually short term, and requires a clear exit plan |
| Alternative or B lender | Borrowers who fall outside bank guidelines but can still support the mortgage payments | More flexible than a bank and may cost less than private financing, although lender fees can apply |
| HELOC | Qualified homeowners who want ongoing access to available equity | Reusable credit without replacing the full mortgage, but approval requirements can be strict and rates are usually variable |
Already own the property? A conventional mortgage refinance may cost less than private financing if you qualify.
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.