Private Mortgage Lenders Ontario

A private mortgage in Ontario can serve many purposes, but it shares one commonality: It’s a ‘stepping stone’ for those who do not meet traditional bank requirements and a solution to improve your long-term situation.

Whether you’re looking for a private first or second mortgage. For an owner occupied or rental property. No matter what your need or situation, we can help.

How do I get the best private mortgage lender rate?

The best way to ensure the best private lender mortgage rate in Ontario is to connect with a mortgage broker who is able and willing to provide all mortgage options. We have listed some of the best, up to date private mortgage lender rates below.

Private Mortgage Lender Rates as of January 2026

Altrua Financial typically provides lower private mortgage lending rates than our competition. Connect with us today for a quote.

Is a private mortgage a good idea?

A private mortgage is suitable for those who do not qualify through the traditional Canadian banking system. Perhaps income can’t be shown, or credit is in bad shape. Instead, private mortgage lenders tend to focus on the equity available in the property and how the mortgage will eventually be repaid.

How do private mortgages work in Ontario?

Private mortgages are offered by literally over 1000 different lenders in Ontario alone . These lenders offer different rates and terms and have different tolerances and measures for risk. However, the one common thing among these lenders is that there is far less paperwork and hoops to jump through.

How fast can I get a private mortgage?

Many private mortgage lenders advertise ‘1 day financing’. However, this usually isn’t possible. A more reasonable expectation would be from application to closing within 3 days. Sometimes 2 days is possible, but if private mortgage funds are required quickly, 3 days is a reasonable expectation. 

One reason for this is that lenders usually require an appraisal, which can take until the next day, even on a rush basis. The lawyer funding the deal will also need a few hours to prepare the transaction. Typically, 2-3 days is the minimum.

How do I get approved for a Private mortgage?

In most cases, as long as there is at least 15% for down payment or 15% equity remaining for a refinance, a private mortgage can be approved. However, in 2026, in some cases, with no income and distressed credit, the minimum approval can require 20%. 

Often, getting approved is not the difficult part. It’s about getting approved for the best deal with the best mortgage rate. 

Apply today for your best result.

Private Mortgage Risks

• A private mortgage is typically seen as a temporary solution. If the private mortgage can’t be paid off in the short term of, perhaps, 1-3 years, this is less likely to lead to financial hardship. However, if the private mortgage is more permanent, this can lead to high long-term costs and potential issues.
• The main risk for a private mortgage is that is cant be repaid with a lower rate mortgage.
•  Perhaps the payments are included in the mortgage amount, so theres no regular monthly payment. With higher mortgage rates this can eat in to the home equity available. 
• Weather payments are made interest only or included in the mortgage, it can get very expensive. In most cases, the cost of owinging a home with a larger private mortgage is very risky and will not yield a profit. 

Paying off a Private Mortgage

A private mortgage can be paid off at the end of the term, unless the term is fully open. Often trying to pay off a private mortgage before the end of the term can trigger additional costs/ fees. This is one main reason why its important to select the right term length when selecting a private mortgage.

The private mortgage is preferably paid off by a traditional, prime rate lender. If a prime rate lender approval is not quite possible, then a b lender mortgage is the next best option because these rates are often