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Mortgage Squad Advisors
Private rates

Private mortgage rates in Canada.

Private rates aren’t a single posted number — they’re priced on your equity and position, not your credit score, and funded in days. A private first typically runs ~7-10% and a second ~9-13%, with fees disclosed in writing up front. These are typical ranges, not a live quote — we price your exact file and map the exit back to a bank rate.

Rates reviewed by the Principal Broker, Mortgage Squad Advisors · FSRA #13737| Updated Jun 16, 2026
As of Jun 16, 2026. Typical ranges, not a live quote. Your rate depends on your equity and position. O.A.C. FSRA #13737.

What do private mortgage rates actually cost?

Private pricing is risk-and-position based, and it’s always disclosed in writing before you sign. Two things drive the rate: your loan-to-value and your position on title. A private first mortgage at a conservative LTV typically runs in the ~7-10% range. A private second mortgage sits behind your existing first, so the lender takes more risk and it typically runs ~9-13%.

On top of the rate sit the fees — roughly 1-2% lender and 1-2% broker, plus third-party legal and appraisal costs. Every figure is disclosed up front, so you compare the all-in cost on real numbers. These are typical ranges, not a live quote — your exact rate is set when we see your equity and position. The point of private isn’t to live there: it’s a 12-18 month bridge back to A or B (bank/alt) pricing, with the exit mapped before you sign.

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Private mortgage rates — FAQ

What is a typical private mortgage rate?
Private pricing is risk-and-position based, not a single posted number. As a guide, a private first mortgage at a conservative loan-to-value typically runs in the ~7-10% range, while a private second mortgage — which sits behind your existing first — typically runs ~9-13%. On top of the rate you'll usually see roughly 1-2% lender and 1-2% broker fees, plus legal and appraisal costs. These are typical ranges, not a live quote — your actual rate is set by your equity and position and is always disclosed in writing before you sign.
Why are private rates higher than bank rates?
Banks lend on income and credit at the lowest cost of funds; private lenders lend on equity and take more risk, often on files banks decline. They fund fast — typically in days — and look at the property and your loan-to-value rather than re-running you through the stress test. That speed, flexibility, and added risk is what the higher rate pays for. Private is meant to be a short 12-18 month bridge, not a forever rate.
What fees come with a private mortgage?
Beyond the interest rate, expect roughly a 1-2% lender fee and a 1-2% broker fee, plus third-party legal and appraisal costs. Every one of these is disclosed in writing before signing — no surprises at closing. We walk you through the all-in cost so you can compare the private route against your alternatives on real numbers.
How do I get off a private rate and back to a bank rate?
That's the whole plan. A private mortgage is a 12-18 month bridge with a mapped exit to A or B (bank/alt) pricing. Going in, we set the milestones — rebuild credit, season the property, document income, or complete the renovation/sale — so that by maturity your file qualifies for a lower-cost lender. We line up that exit refinance before the term ends so you move off the private rate on schedule, not by accident. Talk to us about your exit plan.

Equity-based pricing, funded in days.

We price your private first or second on real numbers — fees disclosed in writing — and map your exit back to a bank rate. No bureau pull to start.