2026 market ranges
- Private first mortgages: typically in the high single digits (roughly 8%–11%)
- Private second mortgages: typically 9%–14%
- Lender fees: 1%–3% of the loan amount, one-time
What moves the rate
Loan-to-value (LTV)
The single biggest driver. A first mortgage at 50% LTV will price very differently from a second mortgage that pushes combined LTV to 80%.
Property type and location
Detached homes in the GTA price more aggressively than rural acreages or unique properties. Condos, rentals, and non-standard properties typically carry a premium.
Exit strategy
A clear plan — refinance to an A- or B-lender, sale, income improvement — gives the lender confidence and tightens pricing.
Term
Most private mortgages are 6–12 months, interest-only. Shorter terms are often cheaper on rate but tighter on timing.
Where rates sit vs. banks
Bank first mortgages remain meaningfully cheaper for borrowers who qualify. Private pricing reflects the speed, flexibility, and equity-based underwriting that banks don't offer.
How to compare offers fairly
- Always compare the full cost — rate plus lender fee plus broker fee, over the term
- Confirm payment structure (interest-only vs. amortizing)
- Check for prepayment privileges if you plan to refinance early
- Get every fee in writing before you commit