Bank of Canada 2.25% ▬ 0.00|Prime 4.45% ▬ 0.00|GoC 5yr 3.01% ▲ 0.02|CMB 5yr 3.42% ▲ 0.01|CORRA 2.24% ▼ 0.01|as of Jun 15, 2026 · sample · view the rate board →|Bank of Canada 2.25% ▬ 0.00|Prime 4.45% ▬ 0.00|GoC 5yr 3.01% ▲ 0.02|CMB 5yr 3.42% ▲ 0.01|CORRA 2.24% ▼ 0.01|as of Jun 15, 2026 · sample · view the rate board →|

Questions to Ask Before You Use a Private Lender

Private lending is one option to review when conventional financing does not fit, often for a specific, short-term situation. It is never a default or a first choice, and it is not right for everyone. If you are weighing it, these are the questions to ask, print this and take it to any lender so you can compare the answers side by side.

Questions to Ask

What is the all-in cost?

Ask for the full cost, including the lender fee, broker fee, and legal, not the rate alone.

How long is the term?

Most private loans are short term. Know the maturity date and what happens when it arrives.

What is the exit plan?

The exit is how you pay the loan off: moving to conventional financing, selling, or refinancing. Know how and when.

What fees apply?

Setup, renewal, prepayment, and discharge (the fee to pay the loan out and clear it from title). Ask what each is before you sign.

What if the plan changes?

Understand the risk if timelines slip, the market shifts, or a renewal is needed.

Is there a conventional path first?

Ask whether a conventional option fits before private is considered at all.

How We Review Whether Private Fits

  1. Understand Your Situation
  2. Review Conventional Options First
  3. Map the Cost and the Exit
  4. Decide Together

Reading the Answers

What a Clear Answer Sounds Like

A specific all-in cost, a defined term and maturity date, a realistic exit, and fees spelled out in writing. If the deal can answer these plainly, you can weigh it with a clear picture.

A Reason to Pause

No clear exit, a term that does not match your plan, vague costs, or pressure to move quickly. When the answers stay fuzzy, it is a sign to slow down and review conventional options first.

Private lending is one option to review, never the default. When it does fit, it is usually a short-term bridge to a clear next step. We explain the cost and the exit in plain language before you commit, and we say so if it is not the right path for you.
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Talk Through Your Options

Bring us your situation and we will review the financing paths with you, including whether private lending fits or whether a conventional option is the better route. A licensed member of our team will follow up.

Start a conversation
(902) 835-6420  |  contact@tmgharbourtown.ca

Information here is general and educational. It is not financial, legal, or lending advice, and it is not an offer of financing. Private lending is one option to review and is not suitable for every situation. Any figures are illustrative only. All financing is subject to lender review, property review, and supporting documentation. Submission of a form does not guarantee approval or financing.