When traditional banks turn you away because of strict lending rules, a private mortgage can open doors that seemed closed. In Ottawa, many people find themselves with strong income or valuable property but are still declined by big financial institutions due to credit history, self-employment, or unconventional income sources.
Private mortgages step in to fill that gap offering a more flexible, human approach to financing. Instead of focusing solely on your credit score, private lenders look at the bigger picture: your equity, assets, and ability to make timely payments.
At Bank Street Mortgage, we connect you with trusted private lenders who understand unique situations. Our goal is to provide quick approvals, personalized terms, and the confidence to move forward toward your financial goals.
A private mortgage is a loan funded by private investors or mortgage corporations rather than banks or credit unions. These lenders assess your property and overall financial picture, not just your credit score. They are ideal for borrowers who:
In Ottawa’s fast-moving real estate market, a private mortgage can provide the speed, flexibility, and approval options that conventional lending cannot.
Private mortgages are structured differently than traditional ones. They typically have shorter terms (1–3 years) and focus primarily on the equity in your property meaning lenders look more at the Loan-to-Value (LTV) ratio than your credit history.
The first step is submitting your mortgage application along with property details. The private lender then orders a professional appraisal to determine your home’s current market value. In Ottawa, most private lenders are comfortable financing up to 75%–85% of the property’s value, depending on location and condition.
Once the property is assessed, the lender reviews your equity position and exit strategy how you intend to pay off the mortgage at the end of the term (for example, refinancing, selling, or returning to a traditional lender). After review, they issue a mortgage commitment letter outlining:
When you accept the offer, your lawyer coordinates with the lender to register the mortgage on title. Funds are usually released within a few business days, allowing for quick closings often critical in Ottawa’s competitive market.
While terms vary between lenders, here’s what borrowers can generally expect:
| Feature | Typical Range in Ottawa |
|---|---|
| Interest Rate | 8% – 15% (depends on risk & LTV) |
| Term Length | 1 – 3 years |
| Loan-to-Value (LTV) | Up to 85% |
| Fees | 1% – 3% lender fee + legal & broker costs |
| Amortization | Interest-only or short amortized term |
Private mortgages are designed as short-term solutions, not long-term debt. The goal is often to stabilize your finances or improve credit so you can qualify for a traditional mortgage later.
Choosing a private mortgage can offer several strategic advantages, especially when timing and flexibility are key.
Private lenders can approve and fund mortgages in as little as 48–72 hours, compared to weeks with banks. This makes them ideal for urgent closings or bridge loans.
Private lenders focus on equity and property value, not strict credit requirements. This allows self-employed individuals, new immigrants, and those with past credit issues to access financing when banks decline them.
Borrowers can use private mortgages as temporary solutions for example, during renovations, credit repair, or income verification updates. Once stabilized, refinancing with a major bank becomes easier.
For homeowners with significant equity, private lenders offer a convenient way to tap into home equity for:
Private mortgages, while beneficial, come with higher costs. Borrowers should understand the trade-offs.
Working with experienced mortgage professionals like Bank Street Mortgage ensures you fully understand all costs and timelines involved.
Private mortgages serve many unique borrower profiles, such as:
For many Ottawa homeowners, private mortgages are a bridge to long-term stability not a last resort.
A knowledgeable Ottawa mortgage broker plays a critical role in connecting borrowers with reputable private lenders. At Bank Street Mortgage, we maintain strong relationships with trusted private investors across Ontario. Our role includes:
We ensure every borrower receives transparent advice and ethical lending solutions tailored to their needs.
At Bank Street Mortgage, we specialize in private mortgage solutions that work when traditional financing doesn’t. Our approach is built on integrity, speed, and flexibility, ensuring every client finds the best mortgage product for their specific goals.
Whether you need to secure fast financing, leverage home equity, or restructure existing debt, we can help you move forward confidently.
A private mortgage in Ottawa can be a smart, strategic choice when traditional lending isn’t an option. It provides immediate access to funds, flexible qualification, and short-term stability while you plan your next move.
Before signing any agreement, consult a licensed mortgage professional to review your financial goals, repayment plan, and exit strategy.
At Bank Street Mortgage, we’re here to guide you every step of the way from evaluation to funding ensuring your mortgage works for you, not against you.
