A private mortgage is property-secured borrowing from a private lender. It may address a short-term need, but the complete cost, payment capacity and a credible exit plan must be considered before proceeding.
What is a private mortgage?
A private mortgage is a loan secured against property from a private lender, such as an individual, private company or mortgage investment corporation. It is often used as short-term financing. It is different from a premium banking or private-client service.
Begin with your situation
Bring the property details, existing secured debts, cash flow and financing deadline to the conversation. We can discuss what needs assessment and which alternatives to consider. Property equity alone does not establish that a loan is suitable or affordable.
Understand the complete cost
Review interest, lender and brokerage fees, legal and appraisal costs, renewal charges and the amount actually available after deductions. Interest-only payments do not reduce the principal. Ask for written terms and independent legal advice before committing.
Know the risks before proceeding
Private borrowing can be expensive. Renewal is not guaranteed, and missed obligations can put your property at risk. Ask what happens if a sale is delayed, income falls or replacement financing is unavailable. Approval or future refinancing is never guaranteed.
Make the exit plan specific
An exit plan should identify how and when the loan will be repaid, the steps you need to complete and a fallback if circumstances change. A hoped-for increase in property value is not a dependable repayment plan. Discuss progress before the term ends.
Discuss your Ontario or Alberta property
Select your province above to see the appropriate contact number and enquiry context. Tell Tajwar about the amount required, the purpose, property location and timing. A first conversation may lead to financing options, further preparation or a decision not to borrow.
A cost example: gross borrowing versus usable funds
Illustration only, not an advertised offer: a $100,000 gross loan with $6,000 in total upfront deductions leaves $94,000 before any other payouts. Interest, repayment of principal and any further charges remain separate obligations. Obtain an itemized cost statement for the actual proposal; the figures here are chosen examples, not typical fees.
Compare alternatives before committing
Ask whether a conventional application, different timing, a smaller borrowing amount or a decision not to borrow would better address the need. Explain why the funds are required and how repayment will happen. Urgency should not replace a suitability assessment.
| Review | Ask before signing |
|---|---|
| Net funds | How much reaches me after all deductions and payouts? |
| Payments | Are payments interest-only, and is the principal unchanged? |
| End of term | What repays the loan if a sale or refinance is delayed? |
| Property risk | What are the consequences if I cannot meet the obligations? |
Questions to bring to your mortgage conversation
Is private mortgage approval guaranteed if I have equity?
No. Equity alone does not establish suitability or approval. Property, repayment capacity, lender criteria and the exit plan still need review.
Will a bank refinance the private loan later?
That is not guaranteed. The exit plan must identify realistic qualifying steps, timing and alternatives rather than assume future approval.
How does this apply to your plans?
No obligation. A personal conversation with Tajwar.
Further reading: FSRA: Private mortgagesFSRA: A viable private mortgage exit strategy
General information, not a commitment to lend. Mortgage eligibility, costs and terms depend on your circumstances and the lender.