Question 1

How does a private mortgage work in Ontario (Toronto context)?

Accepted Answer

In Toronto and the GTA, private mortgages are particularly common given the high property values and the concentration of self-employed professionals and real estate investors in the region. A private mortgage is a short-term loan secured against your Toronto property — typically 6 to 24 months — that gives you access to capital based on your equity position rather than rigid income documentation. PMC is active across all 905 municipalities and the City of Toronto.

Question 2

How much do mortgage brokers charge in Ontario?

Accepted Answer

Private mortgage brokers in Ontario are compensated through lender-paid fees and sometimes borrower-paid fees (lender fees). Typical broker fees for private mortgages range from 1-2% of the loan amount. All fees must be disclosed in writing under FSRA regulations. PMC provides full fee disclosure before you commit to anything.

Question 3

What is the interest rate on a private mortgage?

Accepted Answer

Private mortgage rates in Toronto and Ontario typically range from 7.99% to 14.99%. Rates are influenced by your loan-to-value ratio, property type (residential, commercial, mixed-use), location within the GTA, loan term, and borrower risk profile. High-equity, low-LTV deals in core Toronto markets often qualify for the lower end of the range.

Question 4

What is a good interest rate for a private loan in Toronto?

Accepted Answer

For a well-structured private mortgage in a strong Toronto or GTA market, a rate in the 8-10% range is competitive. Factors that improve your rate: lower LTV (under 70%), strong property in a liquid market (Toronto core, Mississauga, etc.), short term, and clear documentation of the exit strategy. PMC's network of private lenders allows us to source competitive pricing for qualified deals.

Question 5

Is it better to go with a private lender or bank for a Toronto mortgage?

Accepted Answer

If you qualify for a bank mortgage, the bank's lower rates are generally preferable for the long term. However, many Toronto borrowers — particularly investors, self-employed professionals, and those in transitional situations — don't qualify at the bank due to documentation requirements, property type, or portfolio size. In those cases, a private mortgage gives you access to capital now, with a structured plan to return to conventional financing.

Private Mortgage Lenders in Toronto & the GTA

The GTA's Unique Lending Landscape

Toronto Condo & Loft

GTA Construction

Bridge Loans

Equity Access

Deep GTA Roots. National Scale.

City of Toronto

905 Suburban Markets

Greater Golden Horseshoe

Toronto Private Mortgage Questions

Your Toronto Deal Deserves a Local Expert

What type of financing do you need?

Purchase

Refinance

Equity Take-Out

Bridge/Short-Term

Construction/Renovation

Debt Consolidation