What is a Canadian Private Mortgage and why would I use one?

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Private Mortgages

A Canadian private lender is a non-institutional lender who provides loans to individuals or businesses.

Private lenders typically operate outside of traditional financial institutions, such as banks or credit unions, and are often more flexible in their lending criteria.

What is a Private Mortgage?

A private mortgage is a type of loan that is secured by real estate…like all real estate loans…

Private mortgages are provided by private lenders, rather than traditional financial institutions.

Private mortgages are often used by individuals or businesses who are unable to secure financing through traditional lenders due to factors such as bad credit, lack of income documentation, or a need for a quick loan approval.

Private mortgages can be used for a variety of purposes, including:

Bad Financial Credit

Private mortgages can be a good option for individuals who have bad credit or a limited credit history.

Private lenders may be more willing to lend to individuals with poor credit, as they are able to assess each borrower’s situation on a case-by-case basis.

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Easier mortgage funding

Private mortgages can also be used to secure funding for properties that may not be eligible for traditional mortgages.

For example, if a property is in need of significant repairs or renovations, a private mortgage may be the best option for financing.


Private mortgages can be used to finance the construction of a new property or the renovation of an existing property.

Private lenders may be more willing to lend for construction projects, as they can assess the potential profitability of the project.

private chain sign hanging

Investment and development

Private mortgages can also be used for investment and development purposes.

For example, an individual may use a private mortgage to purchase a property that they intend to rent out or to finance the development of a new commercial property.

Conclusions and Further Thoughts

It’s important to note that private mortgages often come with higher interest rates and fees than traditional mortgages, as they are considered to be a higher risk for lenders.

Borrowers should carefully consider the terms of any private mortgage before accepting the loan.

Huber Mortgage has experience organizing and strategizing with clients in regards to these loans.  Give us a call!



PS – One of my hobbies is blogging about mortgages, debt and government policy.  During the day I’m a MORTGAGE BROKER in Kelowna, BC!

Check out the Huber Mortgage Home Buyers Guide HERE

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