Private lending refers to mortgage financing provided by an individual or organization that is not a bank, credit union, or other traditional financial institution. These lenders use private capital to fund loans, often backed by real estate as collateral.

Private mortgages are commonly short-term (6–24 months) and used for purposes such as:

• Bridge financing

• Debt consolidation

• Home renovation or construction

• Property investment

• Land acquisition

• Rebuilding credit after bankruptcy or consumer proposal

Private mortgages are ideal for borrowers who:

• Have been declined by banks due to credit issues or income verification

• Are self-employed with non-traditional income

• Have high debt loads or recent financial setbacks

• Need fast funding for time-sensitive real estate deals

• Are purchasing or refinancing unconventional properties (e.g., rural, mixed-use, or distressed)

1. Asset-Based Lending
2. Short-Term Solutions
3. Higher Interest Rates and Fees
4. Speed and Flexibility

Private lenders can approve and fund deals in a matter of days, making them ideal for urgent or complex transactions. Documentation requirements are generally less stringent than with banks.