Private financing carries higher costs than a bank mortgage in exchange for speed and flexibility. Here's exactly how rates and fees work, in plain language, before you sign anything.
Private mortgage costs in Ontario typically include the interest rate (starting from 4.95%, interest-only), a lender fee, and a broker fee, all disclosed before the borrower commits. Costs are higher than bank mortgages because private lenders take on more flexible underwriting risk and move on compressed timelines; the trade-off is speed and accessibility.
Private financing should never come with surprise costs. Here's what's typically included.
Private rates start from 4.95%, typically structured as interest-only payments to keep monthly costs manageable.
A one-time lender fee and broker fee apply, usually calculated as a percentage of the loan amount and disclosed upfront.
Standard closing costs — appraisal and legal fees on both sides — are typical of any mortgage transaction.
You'll see the full cost breakdown before you ever sign a commitment.
Before you apply formally, we provide a plain-language estimate of rate, fees, and total cost.
The lender's formal commitment letter spells out rate, fees, and terms in writing — nothing verbal or assumed.
You have the opportunity to review the commitment and ask questions before signing.
The costs disclosed at commitment are the costs at closing — no last-minute additions.
Rates and fees vary by file. These are the main factors that move the number up or down.
The cost questions we get asked most often, answered plainly.
Share your property and loan details for a full cost breakdown, no obligation.
