Key takeaways
- Approval is equity-first; income and credit matter less.
- Expect a lender fee and possibly a brokerage fee, both disclosed on the bid.
- Plan your exit back to a prime or alternative lender.
How does a private mortgage work in Canada?
The lender registers a first, second or third charge. Most are interest-only, open after a short period, and renew annually.
Private vs alternative vs prime lenders
| Prime (A) | Alternative (B) | Private / MIC | |
|---|---|---|---|
| Typical rate | Lowest | +1% to +3% | Higher, plus fees |
| Qualifying | Strict ratios, stress test | More flexible | Equity-based |
| Speed | 2–4 weeks | 1–3 weeks | Days |
| Best for | Strong credit and income | Self-employed, recent credit issues | Short-term needs, complex files |
How do I exit a private mortgage?
Improve credit, document income and refinance with an alternative or prime lender at renewal. Lenders bidding on MortgageBids.ca can quote both sides of that plan.
Frequently asked questions
Are private mortgage lenders regulated?
Lenders that administer mortgages for investors, and brokerages that arrange them, are licensed provincially (for example by FSRA in Ontario). Every lender on MortgageBids.ca is approved before bidding.
MBWritten by the MortgageBids.ca editorial team. Last updated October 7, 2026. General information only; your lender confirms terms for your file.
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