Private Mortgages in Ontario, British Columbia & Nova Scotia.
Private mortgage Lenders.
A Toronto-Based Boutique Mortgage Firm.
Private Mortgage Lender & Broker Advisory Services.
Serving Ontario, British Columbia & Nova Scotia.
What is a Private Mortgage?
Direct Private Mortgage Lenders.
A private mortgage is a loan secured by real estate funded by a mortgage lender other than a bank, credit union, or trust company used to assist with the purchase, refinance or construction of residential, commercial and industrial, as well as land and purpose-built real estate. Private mortgages can help real estate owners access their equity or refinance or replace an existing mortgage, especially when traditional or alternative mortgage financing isn’t possible for one or more reasons. Existing real estate owners and those looking to purchase, real estate investors, custom home builders and developers utilize private mortgage capital to accomplish their borrowing goals, free of red tape and onerous underwriting requirements. Traditional and alternative mortgage lenders must abide by stringent underwriting policies that often prohibit a large market segment from obtaining efficient capital. Private lenders self-prescribe their underwriting and lending guidelines without government intervention, thus enabling customized solutions catered to each client’s unique circumstances. DV Capital has immense experience originating, underwriting, sourcing and funding private mortgages in Ontario, British Columbia and Nova Scotia.
Private Mortgage pros & Cons.
Learn about private mortgages.
Let us explore and understand the differences between traditional and private mortgages. Traditional mortgage lenders, such as banks, trust companies and credit unions, are federally or provincially regulated and must abide by stringent underwriting guidelines. Homeowners, homebuyers and real estate investors that can satisfy traditional mortgage lender underwriting guidelines are candidates for competitively low interest rates and traditional mortgage term lengths (i.e., 1-5 years). Traditional lenders have fairly restrictive qualifying guidelines and underwriting policies about the property type, zoning, location and condition, the client’s income, employment and credit profile and other factors. Private mortgage lenders play a crucial role in the Canadian mortgage market by lending money to homeowners, homebuyers, real estate investors, custom home builders and real estate developers who cannot qualify for traditional financing for one or more reasons or are willing or need to access common-sense capital with less red tape at a premium. Unlike traditional mortgage lenders, private lenders typically have more lenient underwriting policies and are usually willing to approve mortgages turned down by traditional lenders. In exchange for private mortgage lenders taking on additional lending risk that traditional lenders are unwilling to accept, they will charge an interest rate premium. Private mortgages, by design, usually have short terms ranging from 6-24 months, most commonly 12 months. Private mortgages provide a short-term solution for clients to improve their circumstances to transition to a traditional mortgage or to assist with a financing objective that can be satisfied during the term of a private mortgage. Contact us to learn more about private mortgages.
When Is a Private Mortgage Required?
Fast & Flexible Private mortgage loans.
As mentioned, traditional lenders, referred to as A-lenders, and alternative lenders, referred to as B-lenders, must operate under rigid government-prescribed mortgage underwriting requirements, which often include the ‘mortgage stress test’ that requires borrowers to prove they can qualify for a mortgage at an interest rate higher than the actual mortgage contract rate. Private mortgage lenders play a crucial role in the Canadian real estate market, a real estate market that continues to under-service the needs of many, including those who are new to Canada, self-employed, establishing or rebuilding credit, purchasing, refinancing, building a custom home or accessing equity from real estate located in rural or remote locations. Naturally, this has created a demand for non-bank borrowing options, and private mortgage lenders and private mortgage investors have stepped up to service such needs. Private mortgages finance residential, commercial, industrial, land and most real estate classes. Such purposes include purchasing real estate, refinancing or replacing existing mortgages, accessing equity, renovating before listing real estate for sale and construction mortgages. One must be mindful that private mortgages are, by design, a short-term costlier borrowing option than traditional mortgages; therefore, one’s borrowing objective must coincide with such costs and timelines. DV Capital has underwritten and funded millions of dollars of private mortgages and has the experience, connections and resources to assist its clients with their private mortgage requirements in Ontario, British Columbia and Nova Scotia.
Private Mortgage Features.
1st, 2nd & 3rd Private Mortgages.
Private mortgages are short-term financing facilities for homeowners, real estate purchasers and investors, custom home builders and real estate developers. There are many private mortgage features in addition to the essence of a private mortgage being relatively easier to qualify for with a quicker turnaround. Private mortgage terms typically range from 6 to 24 months, although 12-month terms are most common. Private mortgages are short-term products intended to act as a stepping-stone to traditional mortgage facilities or to accomplish a short-term borrowing need. Unlike traditional mortgages that are usually always amortized, having payments consisting of both principal and interest, private mortgages usually only have interest-only payments, meaning that the principal doesn’t reduce during the term and payments only consist of interest. Occasionally, private mortgages are amortized, however, very little principal gets reduced in a 1-year term, so borrowers often prefer an interest-only mortgage as the payment is usually less than an amortized mortgage payment. Occasionally, we can offer ‘no-payment’ mortgages, sometimes referred to as a ‘prepaid interest mortgage’ or an ‘interest reserve’ by way of prepaying the mortgage payments for a part or entirety of the term. In other cases, we can offer a custom mortgage payment by prepaying the difference between the actual payment and the amount that best suits our client’s budget. Contact us to learn more about private mortgage features and to discuss potential private mortgage options for urban, suburban and rural real estate in Ontario, British Columbia and Nova Scotia.
Types of Private Mortgage Lenders.
Private Mortgage Lenders Near You.
Generally speaking, two primary categories of private mortgage lenders provide private mortgages in Canada:
Mortgage Investment Entities: A Mortgage Investment Corporation, for example, a Mortgage Investment Corporation, is a mortgage investment vehicle that consists of qualified investor capital that gets deployed by the Fund Manager into private mortgages that meet the underwriting and loan criteria of the Mortgage Fund. Mortgage Investment Entities are typically well-capitalized and managed and specialize in specific mortgage programs: second mortgages, commercial mortgages, construction loans or equity-based private mortgage lending.
Private Mortgage Investors: Examples of Private Mortgage Investors are High Net Worth Individuals or Family Offices that provide private mortgages on a ‘case-by-case’ basis, in one or multiple individual private mortgages, per their lending guidelines. This structure differs from a Mortgage Investment Entity in that capital gets deployed from an individual or a smaller group of investors. Private Mortgage Investors facilitate private mortgage lending through licensed Mortgage Brokerages, such as DV Capital, who, on transactions, act only for the Private Mortgage Investor, the Borrower, or both parties.
DV Capital Corporation provides homeowners, real estate investors, custom home builders and real estate developers with direct access to a vast network of private mortgage funds for residential, multi-family, apartment, commercial, mixed-use, industrial, land, custom home construction financing and development requirements across Ontario, British Columbia and Nova Scotia.
Private Mortgage Brokers.
Private Mortgage Broker Near You.
While there are slight similarities between traditional (A-lending), alternative (B-lending) and private mortgages, private mortgages require specialized care and experience due to their shorter-term, costlier nature. In fact, as of April 1st, 2024, the Financial Services Regulatory Authority of Ontario implemented a new licensing regime for private mortgage activity in Ontario, thereby only permitting two licensing tiers to deal and trade in Private Mortgages. DV Capital, a licensed Mortgage Brokerage, and its associates, licensed Mortgage Brokers, are licensed to participate in private mortgage activity, possess many years of experience and sophistication, maintain a vast network of private mortgage lenders and investors and have earned a reputation for being a go-to private mortgage financier. Often, mortgage agents and brokers are accustomed to traditional mortgage underwriting guidelines that operate within the ‘check the box’ approach and are uncertain how to assist clients with their unique private mortgage requirements. We specialize in reviewing, structuring and approving private mortgages for clients with no credit, poor credit, active or discharged insolvencies, fluctuating income or facing financial distress: mortgage arrears, property tax arrears, CRA arrears or facing a power of sale or foreclosure. In most cases, DV Capital can assist clients in Ontario, British Columbia and Nova Scotia based on sufficient equity regardless of being turned down elsewhere.
Private Mortgage lenders for Bad Credit.
Can You get a mortgage with bad credit?
Over the years, DV Capital has worked with client credit profiles of every shape and size, understands that bad times happen to good people and believes in providing clients with a fresh slate and a chance to get ahead. It isn’t always that clients have faced less-than-ideal circumstances; many have recently arrived in Canada and have not yet established credit or have lived in Canada for many years and have no credit or very thin credit. We work with clients with previous or active consumer proposals, credit counselling plans or bankruptcies and provide specialized feedback and guidance as to how clients can establish or rebuild credit to improve their chances of qualifying for a mortgage with a traditional (A-lender), alternative (B-lender) or private mortgage lender as a short-term, stepping-stone solution. We have success providing clients with debt consolidation mortgages to eliminate multiple higher-interest rate debts without succumbing to filing for consumer proposals or bankruptcy. We aim to help clients whose current credit profile does not allow them to refinance with their existing mortgage lender and who feel they are out of options when they might be approved regardless of being turned down elsewhere. DV Capital provides expert assistance and access to bad credit mortgage products across Ontario, British Columbia and Nova Scotia.
Self-Employed Private Mortgages.
Private Mortgages for Business for Self.
So, you’ve decided that business ownership suits your vision for freedom and success; congratulations! While you might be able to side-step certain disadvantages with employment that persuaded you to embark on your self-employed venture, you may have learnt that qualifying for a mortgage as a self-employed individual is not exactly a walk in the park. Whether you are operating as a sole proprietor, a corporation or a partnership, you will be required to provide a plethora of income documents, including documents that you might not have available; if such documentation is available, they might not be able to illustrate or verify your income in a manner that allows you to qualify for a traditional mortgage with an A-lender. The review process imposed by traditional mortgage lenders has rigid underwriting policies and stringent requirements for self-employed mortgages, assesses the business’s income, assets, liabilities, revenue, expenses, financial statements, tax returns and notice of assessments with a fine-toothed comb. Rest assured, DV Capital provides highly competitive self-employed mortgage products and interest rates. One of the many value propositions we provide to self-employed clients that traditional lenders often cannot is our diverse product catalogue of self-employed mortgages. We provide alternative mortgage (B-lender) solutions to self-employed clients, allowing greater flexibility concerning required documentation and qualifying requirements. DV Capital is well-positioned to fund private mortgages for self-employed clients who cannot yet qualify for traditional or alternative mortgage solutions and understands the nature of income fluctuation due to seasonality or industry trends. Whether a business has been in operation for many years or recently established, going through a rough patch, overextended its credit to support its business operations and expenses, is looking to access equity for business operating capital or to replace an existing mortgage, DV Capital provides flexible self-employed mortgage approvals for those looking to purchase or refinance residential, commercial or industrial real estate in Ontario, British Columbia or Nova Scotia.
Jumbo Private Mortgage Loans.
Mortgages for $1M - $20M +
A Jumbo mortgage loan is industry jargon for a mortgage that exceeds the maximum mortgage amount that most traditional (A-lender) or alternative (B-lender) mortgage lenders are willing to provide. For one, most mortgage lenders, including private mortgage lenders, implement what is known as a mortgage sliding scale policy. A mortgage sliding scale policy reduces the mortgage amount that a lender is willing to provide to a borrower once the value of the subject property exceeds a certain threshold; such threshold varies per mortgage lender, as does the percentage of excess value above such threshold lenders will lend against. In other cases, clients may not have difficulty qualifying for the mortgage amount they require due to insufficient income prohibiting them from passing the mortgage stress test, an exercise whereby borrowers must demonstrate that they can afford their mortgage if interest rates were to increase. Similarly, income-producing real estate owners of residential, commercial or industrial property may not be able to qualify for the mortgage amount they require due to debt service coverage issues, especially if they are experiencing vacancies or under-market rents. DV Capital provides jumbo mortgage loans for residential, commercial and industrial real estate without stringent debt serving ratio, income, credit or heavy documentation requirements. Subject to due diligence, DV Capital can facilitate private mortgage financing over $20,000,000 on a single transaction with an equity-focused approach in Ontario, British Columbia and Nova Scotia.
Mortgages for Remediated Grow Ops.
Mortgages for Cannabis Grow-Ops.
Due to the stigma associated with properties previously used as illegal grow operations, most traditional, alternative and private mortgage lenders will often shy away from financing due to marketability concerns. Even with satisfactory environmental and structural inspections, many mortgage lenders will choose to avoid financing real estate previously used as a cannabis grow operation, even post-remediation. In other cases, legal, regulated and authorized cannabis storefront grow operations exist in rural and urban locations; similarly, most mortgage lenders will avoid financing real estate, whether mixed-use, retail, commercial, or industrial, where such activity or operation occurs. DV Capital works with and accepts funding requests from regulated cannabis business owners and real estate owners with cannabis-related tenants.
Rush & Emergency Mortgages.
same Day Mortgage Approvals.
DV Capital understands just how quickly a supposed ‘mortgage pre-approval or mortgage approval’ can fail to come to fruition and end up being as misleading and worthless as the paper printed on. They’ve witnessed countless cases where individuals relied on ‘pre-approvals’ or ‘conditional approvals’ and entered into purchase agreements or plans to refinance their real estate to access equity for an intended purpose, usually within a specified deadline, to find out that their ‘approval’ was meaningless, embedded with insurmountable conditions or a product of an incomplete and rushed underwriting review, resulting in an immense waste of time and energy. Individuals who have waived their financing on the belief that their bank will provide the mortgage as represented and find themselves approaching the closing date without a mortgage in place might be in a tough spot as they are contractually obligated to close their purchase. Failure to close may result in the forfeiture of the deposit paid to the seller, or worse, might result in a domino effect whereby multiple parties and their transactions are compromised, potentially resulting in one or more lawsuits commencing with the possibility of damages arising. DV Capital specializes in same-day mortgage assessments and emergency rush mortgage approvals for purchases, refinances, equity takeouts, and other time-sensitive situations such as handling mortgage arrears, property tax arrears, CRA issues, stopping a power of sale or redeeming a foreclosure. Contact us for your emergency mortgage requirements in Ontario, British Columbia and Nova Scotia.
Is Your Mortgage In Arrears?
Missed a Mortgage Payment?
DV Capital has experienced countless cases of real estate owners experiencing financial distress due to mortgage arrears or resulting in mortgage arrears. For many years, we have helped real estate owners overcome mortgage delinquencies, power of sale and foreclosure. Real estate owners with existing mortgages approaching maturity date that have had late payments during their mortgage term might not receive a renewal offer if lenders question their ability to make payments, especially in a higher interest rate environment. Similarly, plans to refinance to another mortgage lender may be prohibited if a new lender requests verification that mortgage payments were paid on time with the existing lender if such verification isn’t possible. For real estate owners currently facing mortgage arrears, the process may become stressful and costly and ultimately lead to the sale of a property under a power of sale or the lender commencing foreclosure and possessing the property’s equity and title. We have experience helping real estate owners bring mortgage arrears up to date or replace mortgages in arrears, preventing legal proceedings such as a power of sale or foreclosure that can erode equity with costly mortgage and legal fees and lead to the sale of the property. DV Capital has immense experience helping real estate owners experiencing mortgage arrears across Ontario, British Columbia and Nova Scotia.
Finding The Best Private mortgage Rates.
Canada Private Mortgage Lenders.
DV Capital is active and experienced in the private mortgage market, a marketplace often overlooked by traditional lenders for many reasons, mainly due to borrowers’ income and credit profiles that do not conform to rigid underwriting requirements or due to the location, condition and type of the real estate asset. Private mortgage lenders in Canada provide mortgage options for purchasers and real estate owners who cannot ‘fit the box’ with traditional (A-lenders) and alternative (B-lenders) lenders. As a result, private mortgage lenders require an interest rate premium that provides an appropriate risk-adjusted return. Private mortgage interest rates are higher than traditional and alternative mortgage rates; in exchange, borrowers have access to borrowing options that otherwise wouldn’t be available. DV Capital maintains relationships with a vast network of private mortgage lenders and private mortgage investors, such as Mortgage Investment Entities (i.e. Mortgage Investment Corporations (MIC) and Mutual Fund Trusts), Family Offices and High Net Worth Investors. We warmly invite you to contact us for a complimentary assessment, private mortgage quote and private mortgage approval for your residential, commercial, land and construction financing requirements in Ontario, British Columbia and Nova Scotia.
Understanding private mortgage fees.
how to find the lowest private mortgage fees.
In addition to private mortgage rates being higher than traditional mortgages, and often alternative and reverse mortgages, so are the borrowing costs associated with private mortgages. While there are marginal set-up costs with reverse mortgages and fairly standardized lender fees with alternative mortgages, private mortgage fees vary based on many factors. From a very high level, lender fees are priced based on cost of capital, transaction risk and fees charged in the marketplace on similar transactions for lenders to remain competitive. In other words, the more straightforward and less risk a transaction presents, the lower the lender fee might be, within reason. The riskier the transaction, especially if very few lenders would consider the transaction, the higher the lender fee might be, within reason. Lenders will also asses their security, the real estate asset: the location, condition and marketability, the creditworthiness of the borrower, the purpose of funds and the required turnaround time. All factors are relevant to establishing lender fees, some of which may trigger additional premiums. Some private lenders operate with formulaic lender fees, and others price their lender fees based on the merits of each transaction. Usually, private mortgage fees on second and third mortgages are higher than first mortgage fees, given the increased risk that lenders face. It is important to note that private mortgage borrowers must assess the total sum of private mortgage lender and broker fees, regardless of how many parties are involved in the transaction. In other words, a private mortgage with one investor and two mortgage brokers may still be cost-friendlier than a private mortgage with one lender, even if there are more participants. Contact DV Capital for a complimentary private mortgage fee discussion and quotation for your private mortgage needs across Ontario, British Columbia and Nova Scotia.
how to find a private mortgage.
Missed a Mortgage Payment?
DV Capital and its broker associates are well-experienced and positioned in the private mortgage market, a marketplace often overlooked and underserviced by traditional (A-lenders) and alternative (B-lender) lenders. First, it’s helpful to understand that private mortgages provide short-term solutions for real estate owners for one or more purposes. Private mortgage lenders require risk-adjusted returns as they fund mortgages that exceed the risk-tolerance, flexibility, speed and common sense of traditional and alternative mortgages. Accordingly, private mortgage lenders price their mortgage rates higher than traditional and alternative lenders; in exchange, they provide purchase, refinance, and construction loans with less red tape, resistance and underwriting stringency. As a leader in the private mortgage market, acting as a direct private mortgage lender and providing private mortgage broker advisory services, DV Capital maintains a vast network of private mortgage lenders and investors, thus providing immense value to real estate owners and purchasers. Given the uniqueness of client circumstances, DV Capital invites real estate owners and purchasers to contact them directly for a cost-free, complimentary discussion to receive customized private mortgage rate quotations. Strategic relationships with Private Mortgage Lenders, Mortgage Investment Entities (MIEs) such as Mortgage Investment Corporations (MIC), Family Offices and High Net Worth Individuals allow DV Capital to receive lightning-quick, red-carpet treatment that provides its clients access to some of the best private mortgage rates across Ontario, British Columbia and Nova Scotia.
How to Apply for a Private Mortgage?
Private Mortgages in Ontario, British Columbia & Nova Scotia.
Exploring the private mortgage market is no easy feat; there are many points of consideration for consumers. The Ontario mortgage regulator, the Financial Services Regulatory Authority, only permits active licensees with a Mortgage Agent Level 2 or a Mortgage Broker license to deal and trade in private mortgages. Although the requirements aren’t as stringent in British Columbia and Nova Scotia, consumers should ensure they only communicate and work with a licensed mortgage professional. Each private mortgage lender caters to different property types, locations and client profiles and has different underwriting policies, documentation requirements, terms, interest rates and fees. Individuals, real estate investors, business owners and custom home builders can significantly benefit from working with a licensed private mortgage lender and broker advisor. DV Capital and its associates have originated, underwritten, placed and funded thousands of private mortgage transactions; they’re a one-stop shop providing red-carpet treatment with a proven process that prioritizes efficiency, results and the path of least resistance. Experience a seamless online application portal from the comfort of your home or while on the go. DV Capital provides private mortgage services across Ontario, British Columbia and Nova Scotia.
Private Mortgage Benefits.
Best Private Mortgage Lenders.
- First, second, and third private mortgages.
- Higher loan-to-values up to and above 85%*.
- Equity based private mortgage lending.
- Flexible income and credit requirements.
- No mortgage stress-test.
- Prepaid or customized mortgage payments.
- Same day private mortgage approvals.
- Access to the best private mortgage lenders.
- Rush and emergency mortgage approvals.
- Mortgages for self-employed individuals.
- Replace a non-renewing mortgage.
- Bring mortgage arrears up to date.
- Bring property taxes up to date.
- Stop a power of sale.
- Redeem a foreclosure.
- Business operating capital.
- Divorce and spousal buyout financing.
- & more.
Private Mortgage Property Types.
private mortgages for most property types:
- Detached & Semi Detached Real Estate
- Low, Mid & High-Rise Condo & Strata Units
- Private Mortgages for Luxury Homes
- Custom Home Construction Mortgage
- Multi Family Real Estate
- Mobile Homes on Leased Land.
- Mixed-Use Real Estate
- Commercial Real Estate
- Industrial Real Estate
- Hotel & Motel (Hospitality Assets)
- Places of Worship (ie. Church, Mosque, Temple)
- Purpose-Built Real Estate
- Retail Offices & Plazas
- Medical Facility Mortgages
- Storage Facility Mortgages
- Parking Lot Mortgages
- Manufactured Home Communities
- Condo Hotel Mortgages (Four Seasons, Shangri-La, Bisha etc)
- & more.
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