Private Mortgage Rates in Ontario (2026): What Actually Drives Your Rate and How to Get the Best Terms

Private mortgage rates in Ontario currently range from 7% to 14%, depending on whether the financing is structured as a first mortgage, a second mortgage, or a construction loan. A first mortgage from a private lender in Ontario typically carries an interest rate between 7% and 10%. Second mortgages range from 9% to 14%. Construction financing generally falls between 10% and 14%. These are the interest rate ranges — not the total cost of borrowing, which includes lender fees, broker fees, legal costs, and other charges that can add 3% to 7% to your effective annual percentage rate (APR).

The rate you receive depends on seven specific factors: your loan-to-value ratio, the property type and location, the strength of your exit strategy, your borrower profile, the loan term, current market conditions, and the lender source. Understanding how each factor influences your rate is the most strategic step you can take before entering the Ontario private lending market in 2026.

Quick Reference: Private Mortgage Rate Ranges in Ontario (2026)

The following table summarises current private mortgage rate ranges across the three most common financing structures in Ontario. These are interest rates only — total cost of borrowing is higher after fees are included.

Rates shown are illustrative and reflect general Ontario market conditions as of early 2026. Actual rates depend on individual circumstances, including property type, location, equity position, exit strategy, and lender source. Rates are subject to change based on market conditions.

For a complete breakdown of how these rates translate into total cost of borrowing, read our guide on the true cost of a private mortgage in Ontario.

How Do Private Mortgage Rates Compare to Bank and B-Lender Rates?

Private mortgage rates sit at the top of the Canadian lending spectrum. They are higher than both A-lender (bank) and B-lender (alternative lender) rates. But rate alone does not determine whether a financing option is the right strategic choice.

The table below shows how rate ranges compare across the three tiers of the Canadian mortgage market as of early 2026.

For a deeper comparison of when each lender type makes strategic sense, read our full guide on private mortgage vs bank vs B-lender financing.

The rate premium on private lending reflects three structural realities: private capital is not subsidised by government deposit insurance or CMHC backstops, private lenders fund faster and with more flexibility than institutions, and private lending evaluates the full borrower story rather than a standardised checklist. The premium is the cost of access, speed, and flexibility — not a penalty.

What Are the 7 Factors That Determine Your Private Mortgage Rate?

No two private mortgage rates are the same. The rate on your deal is the product of seven interrelated factors that the lender evaluates together. Understanding each one gives you the ability to position your deal for the best terms available.

1. Loan-to-Value (LTV) Ratio

LTV is the single most influential factor in private mortgage pricing. It represents the ratio of your loan amount to the appraised value of the property.

A borrower seeking a $300,000 first mortgage on a property appraised at $600,000 has a 50% LTV. A borrower seeking $450,000 against the same property has a 75% LTV. The lender's risk exposure is fundamentally different in each scenario, and the pricing reflects that.

How LTV affects your rate:

Reducing your LTV — by bringing more equity to the deal or borrowing less — is the most direct path to a lower private mortgage rate. On a $500,000 mortgage, the difference between a 50% LTV deal and a 75% LTV deal can be 2-3 percentage points, which translates to $10,000 to $15,000 in annual interest savings.

2. Property Type and Condition

Private lenders price risk partly based on how quickly and predictably they could recover their capital if the borrower defaults. Property type directly affects this calculation.

Property type rate hierarchy (lowest to highest rates):

• Urban residential (detached, semi-detached, townhouse) in major Ontario markets. These are the most liquid property types. A detached home in Toronto, Ottawa, Hamilton, or Kitchener-Waterloo can typically be sold within 30-60 days, giving the lender confidence in recovery. Rates are at the lower end of the range.

• Condominiums. Condos in urban centres are liquid, but condo-specific risks (status certificate issues, special assessments, rental restrictions) can add a modest premium.

• Multi-unit residential (2-6 units). Income-producing properties carry moderate risk. Lenders evaluate both the property value and the rental income. Rates sit in the mid-range.

• Commercial and mixed-use properties. Longer marketing times and more complex valuations push rates toward the higher end.

• Rural and recreational properties. Properties outside major urban centres have longer sale timelines and smaller buyer pools. Lenders compensate with higher rates.

• Vacant land and construction projects. These carry the highest rates in private lending because there is no completed asset to secure the loan against until the project is finished. Construction financing typically falls in the 10-14% range.

3. Property Location

Geography matters in private lending. Ontario is not a single market — it is a collection of local markets with different property values, liquidity profiles, and economic fundamentals.

Properties in the Greater Toronto Area (GTA), Ottawa, Hamilton, London, and Kitchener-Waterloo generally qualify for the most favourable private mortgage rates. These markets have deep buyer pools, active resale volumes, and predictable valuation patterns.

Properties in smaller Ontario centres — Barrie, Niagara, Kingston, Sudbury, Thunder Bay — may carry a rate premium of 0.5% to 2% relative to GTA-equivalent deals, depending on the lender's comfort with the local market.

The further a property sits from a major urban centre, the more the lender needs to account for market liquidity risk. That risk is priced into the rate.

4. Exit Strategy Strength

At Private Mortgages Canada, exit strategy is not an afterthought. It is a core factor in every deal we structure — and it directly influences the rate we can negotiate with our private capital sources.

An exit strategy is the documented plan for how the borrower will repay or refinance the private mortgage at the end of the term. The clearer and more viable the exit, the lower the risk for the lender, and the better the terms for the borrower.

Strong exit strategies that can lower your rate:

• Confirmed sale of another property with a firm closing date
• Pre-qualification from a B-lender or A-lender for refinancing within 6-12 months
• Construction completion timeline with a clear take-out financing plan
• Documented credit improvement plan with measurable milestones

Weak or absent exit strategies that increase your rate:

• "I will sell if I have to" with no specific timeline
• No documented plan for transitioning to conventional financing
• Reliance on property appreciation alone
• No credit or income improvement plan in place

For a detailed guide to building a strong exit strategy, read our cornerstone guide on private mortgage exit strategy planning.

5. Borrower Profile

Private lenders focus primarily on property equity rather than borrower credit scores. However, the borrower's overall profile still influences rate pricing.

Factors that contribute to a favourable borrower profile:

• Demonstrated ability to service the debt. Even though private lenders do not require traditional income verification, evidence that you can make monthly interest payments (through bank statements, rental income, business revenue) reduces risk and can improve your rate.

• Track record as a borrower. A borrower who has previously held and successfully exited private mortgages presents lower risk than a first-time private borrower. Real estate investors with portfolio experience often qualify for better terms.

• No active legal or financial proceedings. Borrowers with pending litigation, active CRA collections, or other legal complications represent higher risk. These situations do not necessarily disqualify you from private financing, but they are reflected in the rate.

• Self-employed income documentation. If you are a self-employed borrower seeking private financing, providing bank statements, contracts, or other evidence of cash flow — even if it does not meet bank standards — can strengthen your position and support a better rate.

6. Loan Term

Private mortgages in Ontario are structured as short-term financing, typically ranging from 6 to 24 months. The term length influences rate pricing in two ways.

Shorter terms (6-12 months) may carry slightly lower rates because the lender's capital is committed for a shorter period. The trade-off is that shorter terms increase the urgency of the exit timeline. If you cannot refinance or repay within 6-12 months, the renewal will add fees and potentially a higher rate.

Longer terms (18-24 months) provide more runway for the exit strategy to unfold. Some lenders charge a modest rate premium for longer terms because their capital is locked up longer. Others prefer the stability of a longer commitment.

The strategic calculation is not about getting the lowest rate on the shortest term. It is about matching the term to a realistic exit timeline. A 12-month term at 9% that leads to an on-time exit costs less than a 6-month term at 8% that requires a renewal with additional fees. Every renewal compounds the total cost of the mortgage.

7. Market Conditions and Capital Supply

Private mortgage rates are influenced by broader economic conditions, including the Bank of Canada's policy rate, the conventional mortgage market, and the supply of private capital available for lending.

Key market dynamics affecting private mortgage rates in Ontario in 2026:

• Bank of Canada rate trajectory. The Bank of Canada cut rates in 2024 and 2025, bringing the overnight rate down from its 2023 highs. Lower conventional rates have made it easier for some borrowers to qualify at banks, which has slightly reduced demand in the private lending market. This can create room for negotiation on private rates for strong deals.

• Mortgage renewal wave. Over $315 billion in Canadian mortgages are coming up for renewal in 2025-2026. Borrowers who took fixed-rate mortgages at historically low rates in 2020-2021 are now renewing at significantly higher rates. Some will not qualify for renewal at their current bank and will need alternative financing, including private lending. This increased demand can put upward pressure on private rates.

• Private capital supply. The availability of private capital fluctuates. When more private investors and MICs (mortgage investment corporations) are actively seeking to deploy capital, competition among lenders can push rates lower for borrowers. When capital is tight, rates rise.

• Ontario real estate market conditions. In markets where property values are stable or rising, lenders have more confidence in their security, which can translate to better rates. In markets with declining values, lenders increase rates to compensate for higher risk.

What Fees Apply Beyond the Interest Rate?

The interest rate is only one component of the total cost of a private mortgage. Every private mortgage in Ontario carries additional fees that can add 3% to 7% to your effective APR.

On a $500,000 private mortgage at 10% over 12 months, total fees typically add $15,000 to $25,000 on top of the $50,000 in annual interest — bringing the total cost to $65,000 to $75,000 and the effective APR to approximately 15-16%.

This is why the interest rate alone is a misleading comparison metric. APR captures all costs in a single annualised number. Use the PMC mortgage calculator to model the total cost of your specific scenario, or read our detailed breakdown of every cost component in a private mortgage.

Why Are Private Mortgage Rates Higher Than Bank Rates?

This is the most common question borrowers ask — and the answer is structural, not arbitrary.

Private mortgage rates are higher because private lending operates under fundamentally different economics than bank lending. Understanding the differences helps you evaluate whether the rate premium is justified for your situation.

01. Private capital is not subsidised. Banks fund mortgages through deposits that are insured by CDIC (Canada Deposit Insurance Corporation) and through mortgage-backed securities that are guaranteed by CMHC. This government backstop dramatically lowers their cost of capital. Private lenders use their own capital or investor funds with no government insurance. The higher cost of capital is passed through to the borrower.

02. Private lending serves non-standard risk. Borrowers who qualify at banks are the lowest risk. Private lenders serve borrowers whose situations — self-employment income, complex structures, portfolio scale, credit challenges, time sensitivity — fall outside standardised underwriting. Higher risk requires higher compensation.

03. Speed and flexibility carry a premium. A private mortgage can fund in 7-21 days. A bank mortgage takes 30-90 days. The ability to move quickly on a real estate deal, stop a power of sale proceeding, or close a time-sensitive transaction has tangible value. That value is reflected in the rate.

04. Smaller loan volumes and higher per-deal costs. Banks process millions of mortgages annually through automated systems. Private lenders evaluate each deal individually, with hands-on underwriting, legal review, and property assessment. The cost per deal is higher, and that cost is reflected in the pricing.

05. Private mortgages are structured as transitional tools. A bank mortgage is permanent financing designed to last 5-30 years. A private mortgage is designed to last 6-24 months as a bridge to a specific outcome. The annualised rate is higher, but the total cost of the bridge — measured against the value it creates or protects — is the real calculation. A real estate investor in the GTA who uses a private bridge loan to close on a property before a competing offer takes it is not paying a penalty. They are paying for strategic access to capital.

For investors evaluating whether private financing fits their strategy, explore our real estate investor hub or read about how private capital supports BRRRR financing in Canada.

What Is a "Good" Private Mortgage Rate in Ontario?

There is no single "good" rate for a private mortgage. A rate that is excellent for one deal may be unreasonable for another. The quality of a rate can only be evaluated in context.

Here is the framework for evaluating whether your rate is appropriate:

01. Compare the rate to the risk profile. A first mortgage at 55% LTV on a detached home in Toronto should be at the lower end of the range (7-9%). A second mortgage at 80% combined LTV on a rural commercial property should be at the higher end (12-14%). If the rate does not match the risk profile, ask why.

02. Calculate the total cost, not just the rate. A 9% rate with a 3% lender fee costs more than a 10% rate with a 1% lender fee over a 12-month term. Always compare APR. Use the mortgage calculator to model total cost.

03. Measure the rate against the alternative. What happens if you do not proceed with the private mortgage? If the alternative is losing a deal, facing a power of sale, or stalling a construction project, the cost of inaction may exceed the cost of the private rate by a wide margin.

04. Evaluate the exit plan. A rate of 10% on a deal with a strong, documented exit strategy that allows you to refinance to a 5% bank mortgage in 12 months is fundamentally different from 10% on a deal with no exit plan that may require a renewal at 12% or higher.

05. Check the fee structure. A competitive rate paired with excessive fees may not be competitive at all. The rate and fee structure should be evaluated as a single package.

At Private Mortgages Canada, we do not compete on rate. We compete on structuring deals that make strategic sense for the borrower — with exit plans, transparent costs, and terms that serve the borrower's financial outcome. Over 6,500 deals and $2B+ in funded capital across the Streetwise platform, we have learned that the best deal is not the cheapest deal. It is the deal that gets the borrower from where they are to where they need to be, on time and on plan.

How Can You Negotiate a Better Private Mortgage Rate?

Private mortgage terms are negotiable. Unlike bank rates, which are largely standardised, private rates are structured deal by deal. Here are six strategies that can improve your terms.

01. Lower your LTV. Bring more equity to the deal. If you can reduce your LTV from 75% to 60% by bringing additional down payment or by borrowing less, you remove risk from the lender's perspective. Less risk means better pricing.

02. Strengthen your exit strategy. A borrower with a pre-qualification letter from a B-lender for refinancing in 12 months presents less risk than a borrower with a vague plan. Document the exit. Make it specific. The stronger the exit, the better the terms your broker can negotiate.

03. Work with an experienced broker. A mortgage broker who has established relationships with multiple private capital sources can access better rates than a borrower approaching a single lender directly. At PMC, our access to a broad network of private investors and institutional sources across Ontario means we can match each deal with the lender whose risk appetite and pricing best fit the scenario. With 20+ years of experience and thousands of deals structured, we negotiate from a position of track record and volume.

04. Keep the term realistic but not excessive. A 12-month term is standard for most private mortgages. If your exit plan can be executed in 9-12 months, there is no strategic value in requesting an 18-month term at a higher rate. Match the term to your timeline.

05. Prepare your documentation upfront. Even though private lenders do not require the same documentation as banks, providing a complete package — appraisal, property details, income evidence, exit plan, legal information — speeds up the underwriting process and demonstrates seriousness. Lenders price uncertainty. Reduce uncertainty and you reduce your rate.

06. Consider an equity takeout structure. If you have significant equity in an existing property, structuring the deal as an equity takeout at a lower LTV can access better rates than a purchase or construction loan at higher LTV.

Do Private Mortgage Rates Change Seasonally?

Private mortgage rates in Ontario are less seasonal than conventional mortgage rates, but market dynamics do create patterns that informed borrowers can use to their advantage.

Spring and fall (peak real estate seasons). Higher transaction volumes in Ontario's spring and fall markets increase demand for private bridge loans, construction financing, and investor acquisition capital. This increased demand can tighten the supply of private capital, which may push rates slightly higher. Conversely, more deal flow gives brokers more negotiating leverage with lenders who want to deploy capital.

Winter and summer (quieter periods). Lower transaction volumes mean less demand for private capital. Lenders with capital to deploy may offer marginally better terms to attract deals during these quieter periods. For investors who are not under time pressure, structuring deals during off-peak periods can sometimes yield favourable pricing.

Year-end and tax season. Some private lenders, particularly MICs, have year-end deployment targets. If a MIC needs to place capital before its fiscal year-end, borrowers may benefit from more competitive terms. Similarly, tax season creates demand from self-employed borrowers and business owners who need capital while managing CRA obligations.

The seasonal effect on private mortgage rates is modest — typically 0.25% to 0.75% — and is secondary to the deal-specific factors (LTV, property, exit strategy) discussed above. It is not a reason to delay a time-sensitive deal. But for borrowers with flexibility on timing, awareness of market cycles can be a marginal advantage.

Do Private Lenders Offer Rate Holds or Rate Locks?

Rate holds and rate locks work differently in private lending than in conventional mortgage markets.

At banks and B-lenders, rate holds of 90-120 days are standard. The lender guarantees a specific rate for a defined period while the borrower completes the application and closing process. If rates rise during the hold period, the borrower is protected.

In private lending, formal rate holds are uncommon. Here is why:

• Private mortgage deals are priced individually based on the specific risk profile of each transaction. The rate is determined during underwriting, not quoted in advance.
• Private deals typically close within 7-21 days, so the window for rate movement is much shorter than the 30-90 day bank closing timeline.
• The commitment letter, once issued, typically locks the rate and terms for the closing period specified in the letter (usually 14-30 days).

What this means for borrowers: Once you receive a commitment letter from a private lender, the rate and terms in that letter are generally fixed for the stated closing period. There is no separate "rate hold" step. The commitment letter is the rate lock.

If market conditions change significantly between your initial conversation with a broker and the issuance of a commitment letter, the terms may be adjusted. This is another reason to have your documentation prepared and to move efficiently once you decide to proceed.

What Is the Cost of NOT Acting?

Every private mortgage rate conversation should include the other side of the calculation: what happens if you do not access capital at all.

Scenario 1: The missed acquisition. A real estate investor in the GTA identifies a below-market property at $800,000. Bank financing will take 60 days. The seller has a competing offer with a 14-day closing. Without private bridge capital, the investor loses the deal. The potential equity gain of $100,000 to $150,000 on a BRRRR renovation project evaporates. The cost of an 8-month private bridge loan at 10% with standard fees would have been approximately $55,000-$65,000. The cost of inaction: the entire deal. For more on how private capital supports this strategy, read our guide on BRRRR financing with private mortgages.

Scenario 2: The power of sale. A homeowner in Hamilton falls behind on their bank mortgage. The lender issues a notice of sale. The homeowner has 35 days to act. A private first mortgage can discharge the arrears and stop the proceedings. The cost of a 12-month private mortgage at 10% on a $400,000 balance is approximately $55,000-$60,000 including all fees. The cost of a forced power of sale — typically 10-20% below market value on a $600,000 property — is $60,000 to $120,000 in lost equity.

Scenario 3: The stalled construction project. An investor in Kitchener-Waterloo is building a garden suite on a rental property. The bank construction loan ran out before the project was completed. Without additional capital, the half-finished project generates no income, incurs carrying costs, and loses value. A private construction financing package at 12% to complete the project may cost $35,000-$45,000 in total. The completed suite will generate $2,000-$2,500 per month in rental income and add $150,000-$200,000 to the property value.

The interest rate on a private mortgage is a number. The strategic value of having capital when you need it is a calculation that goes far beyond the rate.

What Should You Know Before Comparing Private Mortgage Rate Quotes?

When you receive rate quotes from private lenders or brokers, use this checklist to ensure you are comparing accurately:

01. Confirm the rate type. Is the rate annual? Monthly? Is it simple interest or compounded? Most private mortgages in Ontario quote annual interest rates with monthly interest-only payments. Confirm this before comparing.

02. Ask for the total cost of borrowing. Under FSRA regulations, your mortgage broker must disclose the total cost of borrowing in writing. This includes all interest, lender fees, broker fees, and other mandatory costs. Demand this number.

03. Calculate your APR. Use the total cost of borrowing to calculate the effective APR. This is the only reliable way to compare offers from different lenders. Our mortgage calculator can help you model this.

04. Understand the net advance. Lender fees are typically deducted from the mortgage advance at funding. On a $500,000 mortgage with a 2% lender fee, you receive $490,000 in net proceeds. Understand your net advance before you plan your capital deployment.

05. Review the prepayment terms. Can you repay the mortgage early without penalty? Some private lenders charge prepayment penalties or require a minimum interest period (typically 3 months). Clarify the prepayment terms in writing.

06. Check the renewal terms. If you need to extend beyond the initial term, what are the renewal fees and rate adjustments? A deal that appears competitive at the initial rate may become expensive if the renewal terms are unfavourable.

07. Verify the broker's licensing. In Ontario, mortgage brokers placing private mortgages must be licensed by FSRA. Verify your broker's licence on the FSRA public register. Working with an unlicensed individual exposes you to risk and removes the regulatory protections that FSRA provides.

Frequently Asked Questions About Private Mortgage Rates in Ontario

What is the average private mortgage rate in Ontario in 2026?

Private mortgage rates in Ontario in 2026 typically range from 7% to 14%. First mortgages generally fall between 7% and 10%, second mortgages between 9% and 14%, and construction financing between 10% and 14%. The specific rate depends on the loan-to-value ratio, property type and location, exit strategy strength, borrower profile, and the private lender source. There is no single "average" rate because every deal is priced individually based on its risk profile.

Why are private mortgage rates higher than bank rates?

Private mortgage rates are higher because private lenders use their own capital or investor funds rather than government-insured deposits. Banks benefit from CDIC deposit insurance and CMHC mortgage guarantees that dramatically reduce their cost of capital. Private lending also involves individual deal assessment (rather than automated underwriting), faster funding timelines (days rather than months), and service to borrowers whose situations fall outside bank parameters. The rate premium reflects the cost of private capital, the flexibility of the underwriting, and the speed of funding.

What is a good private mortgage rate in Ontario?

A "good" private mortgage rate depends on the deal's risk profile. For a first mortgage at 50-60% LTV on a residential property in the GTA, Ottawa, or Hamilton, rates of 7-9% are competitive. For a second mortgage at 75-85% combined LTV, 10-12% is within normal range. For construction financing, 10-14% reflects the higher risk. The rate should always be evaluated alongside fees, total cost of borrowing (APR), and the strength of the exit strategy. A lower rate with excessive fees may cost more than a higher rate with minimal fees.

How do I get the lowest private mortgage rate possible?

The most effective strategies for reducing your private mortgage rate are: lowering your loan-to-value ratio by bringing more equity to the deal, presenting a strong and documented exit strategy, offering a desirable property type in a major Ontario urban centre, providing complete documentation upfront to reduce underwriting uncertainty, and working with an experienced FSRA-licensed mortgage broker who has established relationships with multiple private capital sources. At Private Mortgages Canada, our access to a network of private investors and institutional sources allows us to match each deal with the best-fit lender for the borrower's situation.

What is the difference between first mortgage and second mortgage rates?

A first mortgage has priority on the property's title, meaning the first mortgage lender is repaid first if the property is sold. A second mortgage sits behind the first mortgage and is repaid only after the first mortgage is satisfied. Because the second mortgage lender faces higher risk (they may not fully recover their investment if the property sells for less than the combined mortgage balance), second mortgage rates are typically 2-4 percentage points higher than first mortgage rates. First private mortgages in Ontario range from 7-10%, while second private mortgages range from 9-14%.

Do private mortgage rates change with the Bank of Canada rate?

Private mortgage rates are influenced by the Bank of Canada's policy rate, but not directly tied to it in the way that bank variable-rate mortgages are. When the Bank of Canada raises rates, the cost of capital for everyone — including private lenders and investors — increases, which can push private rates higher. When rates fall, private rates may ease as well. However, private rates are more significantly influenced by deal-specific factors (LTV, property, exit strategy) and private capital supply/demand dynamics than by central bank policy alone.

Can I negotiate private mortgage rates?

Yes. Unlike bank rates, which are largely standardised, private mortgage rates are structured deal by deal. An experienced mortgage broker negotiates with private lenders on your behalf, using the strength of your deal (low LTV, strong exit, desirable property) to secure better terms. Working with a brokerage like Private Mortgages Canada, which has placed 6,500+ deals and deployed $2B+ in capital across the Streetwise platform, provides negotiating leverage that a borrower approaching a single lender directly does not have.

What fees are charged on top of the private mortgage interest rate?

Beyond the interest rate, private mortgages in Ontario carry lender fees (1-3% of the loan amount), broker fees (1-2%), legal fees ($1,500-$3,000), appraisal fees ($300-$500+), title insurance ($250-$500), and discharge fees ($200-$500). If the mortgage is renewed, a renewal fee of 0.5-1% may also apply. All fees must be disclosed in writing under FSRA regulations. The total cost of borrowing — including all fees — should be calculated as an APR for accurate comparison. Read our detailed cost breakdown guide for a full analysis.

How long does a private mortgage term last in Ontario?

Private mortgage terms in Ontario typically range from 6 to 24 months, with 12 months being the most common. Shorter terms (3-6 months) are common for bridge loans. Longer terms (18-24 months) are available for deals that require more time for the exit strategy to unfold, such as construction projects or credit rebuilding plans. The term should match the realistic timeline for your exit strategy. PMC structures terms based on the borrower's specific exit plan, not a one-size-fits-all approach.

Are private mortgage rates tax-deductible?

Interest on a private mortgage may be tax-deductible if the borrowed funds are used for an income-producing purpose, such as purchasing or renovating a rental property. The Canada Revenue Agency (CRA) allows interest deductions on borrowed money used to earn income from property or business. Interest on a private mortgage for a personal residence is generally not deductible. Consult a qualified tax professional or accountant to determine the deductibility of interest in your specific situation. PMC does not provide tax advice.

What happens to my rate if I need to renew my private mortgage?

If you cannot exit your private mortgage at the end of the term and need to renew, the renewal rate may be the same, lower, or higher than your original rate, depending on market conditions and the lender's assessment of the deal at renewal time. Renewal also carries a fee, typically 0.5-1% of the outstanding balance, plus legal costs for the renewal documentation. This is one of the most important reasons to have a strong exit strategy: every renewal adds to your total cost of capital and delays your transition to more affordable conventional financing.

How does Private Mortgages Canada determine the rate on my deal?

PMC is an FSRA-licensed mortgage brokerage, not a lender. We do not set rates ourselves. We evaluate your deal based on the seven factors outlined in this guide — LTV, property type, location, exit strategy, borrower profile, term, and market conditions — and then match your deal with the private capital source from our network whose risk appetite and pricing best fit your scenario. Our role is to structure the deal to present the strongest possible case to lenders and negotiate the best available terms on your behalf. With 6,500+ deals and $2B+ funded across the Streetwise platform over 20+ years, we bring track record, relationships, and volume to every negotiation.

Get a Rate Assessment for Your Specific Situation

The rate ranges in this guide are exactly that — ranges. Your actual rate depends on the specifics of your property, your equity position, your exit plan, and the capital sources available for your deal profile.

Private Mortgages Canada provides every prospective borrower with a transparent rate assessment before any commitment. No verbal estimates. No surprise fees at closing. We disclose every cost component, structure a deal that fits your situation, and build an exit plan so the private mortgage serves its intended purpose: a bridge to your next financial milestone.

Start with the numbers. Use the mortgage calculator to model rate scenarios and total cost of borrowing for your specific situation.

Then talk to a strategist. Contact the PMC team at 1-800-208-6255 or through our Deal Snapshot form to request a personalised rate assessment. We will walk you through the seven factors that drive your rate, present the options available from our private capital network, and structure a deal with a documented exit plan.

We have structured over 6,500 deals and deployed more than $2 billion in capital across the Streetwise platform over 20+ years. That experience is behind every rate we negotiate, every deal we structure, and every exit plan we build.

The rate is a number. The strategy behind it is what makes the difference.

Private Mortgages Canada is a division of Streetwise Mortgages (trade name of Real Estate Wealth Builders Inc.), licensed by the Financial Services Regulatory Authority of Ontario (FSRA). PMC operates as a mortgage brokerage, matching borrowers with private capital sources. PMC does not lend its own funds. All rates, fees, and terms referenced in this guide are illustrative, reflect general Ontario market conditions as of early 2026, and are subject to change based on individual circumstances, lender availability, and market conditions. This content is for educational purposes and does not constitute financial, legal, or tax advice. Consult a qualified professional for advice specific to your situation.