Some Canadians may have a credit score under 600 and can not get a conventional mortgage through regular means. A private lender may be able to offer fast financing at a higher rate of interest than a conventional mortgage. 

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The interest rates can range from 6% to 12% with a set-up fee of between 1% to 3% 

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Private lenders often specialize in a certain lending category 

• Re-finance for debt consolidation 

• Purchases/Refinances 

• Residential 

• Mulit-family 

• Farms and commercial 

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Approval can take place within a week of the application and at times only take a couple days. 

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The key benefits of a private mortgage is the need for less documentation in the approval process, which is good for self-employed individuals who may have difficulty proving their income. 

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Private lenders are more flexible when it comes to your credit history. 

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If you are considering a private mortgage, a mortgage broker can help assess the benefits vs. the cost to determine if it is a good fit for you.