2 answers from licensed, verified mortgage brokers.
Two situations: (i) you need to close fast or (ii) the bank has declined you. Both need equity. Income and bruised credit matter less.
It’s a short-term strategy with an exit plan: a refinance, a sale, or a payout. Used that way, it can close a deal, consolidate debt, provide capital for an investment or potentially boost returns.
You need expert brokers on your side to watch for undisclosed or inappropriate fees, no legal review, unregistered lenders, and more.
Answered October 2026
A private mortgage may suit a temporary financing need when traditional lending is unavailable, provided the payments are affordable and there is a realistic exit plan. Review interest costs, lender and brokerage fees, legal costs, renewal terms and penalties. Understand whether payments reduce the principal and what happens at maturity. Your exit plan might involve refinancing or selling, with a backup if circumstances change. Missed payments can put your home at risk.
Answered October 2026
✓ Answers reviewed by VerifiedAdvisors.ca. General information only, not personal financial advice. Speak with a licensed broker about your situation.