Sometimes private financing is a fallback. Just as often it is a deliberate strategy, the move that lets a strong borrower act on an opportunity, fund a build, or unlock value a bank cannot reach quickly. Used well, with a clear exit, it is a positive. The real question is why it might be the right play for you.
Private lending is financing from non-bank sources, often secured against the property and focused on the asset and the exit rather than only on income and credit. It can be faster and more flexible than conventional financing, and it usually costs more, with higher rates and fees and shorter terms. Used well, it is a deliberate strategy; used poorly, it is simply expensive. Knowing the difference, and structuring it with a clear exit, is exactly where a good broker earns their keep. We review it as one option among many, and we are straight with you about when a conventional path is the stronger move.
We are mortgage brokers, not bankers. We work for you, not a single lender, so our role is to lay out every option clearly, including the trade-offs, so you can make an informed decision.
Private does not mean fringe. The lenders range from individuals to established, professionally run firms, and some are owned by institutions. Two of our largest private-lending partners are owned by credit unions, which is part of why we are comfortable bringing the right ones to the table.
Private financing is not one product. It is a family of short-term tools, each suited to a different gap. These are the ones we see most often, with a plain-language guide on each.
Borrowing against equity behind your existing first mortgage, without disturbing a good first-mortgage rate. Often used to consolidate or to bridge a short-term need.
How second mortgages workShort-term funds that carry you from one position to the next, most often between buying a new property and selling the current one.
How bridge financing worksAsset-focused financing while a property is mid-renovation, in transition, or being repositioned toward a conventional refinance later.
What it is, and whenShort-term financing for a builder or investor on a time-sensitive purchase or a project step, planned around a defined exit.
Builder and developer financingAvailability, structure, and terms vary by lender and property and are confirmed only after review. Private lending is one option among many.
Often it is about timing, opportunity, and fit, giving a strong borrower room to move. These are situations where it frequently earns its place.
The common thread is a clear, realistic exit. With one in place, private financing can be a genuinely smart move, and that is the conversation to have with us.
Used right, private financing opens doors. It also has a cost, and going in with eyes open is what turns it from a gamble into a strategy.
Rates and fees are typically higher than conventional financing. It buys speed and flexibility, and you pay for them.
Often a year or less. It is meant as a bridge, not a place to settle.
You need a credible plan to refinance or sell. We map the exit before you take the financing, not after.
The goal is almost always to move back to conventional financing as soon as it fits.
Plenty of our clients have significant net worth and still choose private lending, deliberately, because it is a tool. The right call is never the headline rate on its own. It is the whole picture: speed, the opportunity in front of you, the equity you keep, and the return on the other side. As part of TMG The Mortgage Group, we weigh all of it with you, alongside the conventional paths.
Most of the creative financing we have structured with private capital sits in two places: construction, and value-add or repositioning projects where a property is being improved toward its real worth. On a project, financing is a cost like any other line in the budget. The question is not whether private money costs more than a bank, it is whether the project return justifies the cost of moving now. Often it does.
This is our niche. TMG HarbourTown works alongside affiliated HarbourTown development, construction, and capital teams, so a complex project can draw on a wider bench that works together, reviewed case by case. We have done a great deal of creative structuring here. If your project does not fit a standard box, that is often exactly when a conversation is worth having.
Private lending leans on the asset and the exit more than on income and credit scores. Understanding what a lender looks at, and what the financing costs, lets you decide with the full picture.
What you are trying to do, the timeline, and the full picture.
We look at bank and other conventional paths first, because they usually cost you less.
If a short-term private solution is genuinely the right tool, we lay out the cost and the exit plainly.
We structure the move back to conventional financing as part of the plan, not as an afterthought.
The best private-lending decision is an informed one. Start with these plain-language guides, then talk it through with us.
How private lending works and the situations it actually suits.
GuideBorrowing behind your first mortgage, and when it makes sense.
GuideCarrying the gap between buying and selling.
GuideWhy the way out matters more than the way in.
ChecklistWhat to ask before you agree to any private mortgage.
Not exactly. It is a specific tool for specific situations, usually about timing and fit. For the right short-term need with a clear exit, it can be a smart bridge. For a long-term need, it is usually the wrong tool, and we will tell you.
More than conventional financing. Rates and fees are higher, which is the trade for speed and flexibility. We show you the full cost before you decide, with no surprises. We do not quote rates here; figures are confirmed once we understand your situation.
Usually short, often a year or less. It is designed to bridge to a conventional solution, which is why the exit plan matters so much.
Because private financing is meant to be temporary. A clear path to refinance or sell is what makes it work. If there is no realistic exit, we will steer you away from it.
We do not lead with it. We look at conventional options first, and only present private financing if it genuinely fits your situation. You always make the decision, with the full picture in front of you.
Private mortgages are a long-standing part of the Canadian lending landscape and involve real legal agreements. We help you understand the terms, and we always recommend you review them with your own legal and financial professionals before proceeding.
A first mortgage sits in first position on title. A second mortgage sits behind it, which lets you borrow against equity without touching a good first-mortgage rate. A second usually carries a higher rate than a first because it takes on more risk. We help you weigh whether a second mortgage or a refinance of the first is the better move.
Often faster than conventional financing, which is part of why it exists. Timelines still depend on the property, the appraisal, and the legal work, so we set a realistic schedule with you rather than promise a date.
Residential, investment, commercial, and land are all possible, depending on the lender and the situation. The property type and its marketability are a big part of how a private lender assesses the file.
Typically a lender fee and a broker fee, plus the usual legal and appraisal costs. Every fee is disclosed to you in writing before you commit. We do not believe in surprises.
Private financing comes from sources outside the banks, including mortgage investment entities and individual investors, matched to your situation. As brokers we work for you, not any one lender, and we always recommend you review the agreement with your own legal counsel.
Tell us what you are trying to do. We will look at every option, starting with conventional, and be straight with you about what fits. You are more than just a client. You are our priority.
Private lending is one option among many and is subject to lender review, property review, and supporting documentation. Submission of this form does not guarantee approval or financing.