What Is A Private Mortgage?

A Private Mortgage is a type of Mortgage that’s approved and funded by a Private lender, Mortgage administration, investment company or a Mortgage Brokerage. Just like any other Mortgage, A Private Mortgage is also provided to the borrower and approved based on the available equity in the borrower’s property.

This type of Mortgage loan is generally used to Purchase or Refinance a Residential or Commercial property. Unlike A/B Lenders (Banks) who only offer the borrower with a First Mortgage, Private Lenders can offer the borrower with Second and Third Mortgages. A Private Mortgage can be obtained by the borrower in order to consolidate high interest creditor debts, cover the cost of their Home Renovation expenses, pay off outstanding CRA Taxes or to obtain funds for newly investment property purchases.

Borrowers generally apply for a Private Mortgage if they have bruised/poor credit, don’t have a great deal of income or are unable to provide any traditional documents as proof of income verification. A Private Mortgage approval is the easiest of any other Mortgage since the approval is not based on income/credit or debt servicing ratios. The approval is solely based on the available equity remaining in the borrower’s property.


A Private First Mortgage is a first priority Mortgage charge registered on the deed of a Commercial property, Residential property or Land. It can be used for Refinancing a Mortgage on an existing property, Purchasing Real Estate and Construction Financing.
In case of Private First Mortgages, most lenders will generally lend up to a maximum of 80-90% Loan To Value (LTV) in large urban cities.


A Private Second Mortgage is a second priority Mortgage charge registered on the deed of the property. In terms of priority, it sits in Second position, behind the First Mortgage. 

This type of Mortgage is generally used by borrowers looking to access their home equity for Home Renovation, Debt Consolidation, paying CRA Tax Arrears, bringing First Mortgage payment up to date and into good standing order and to also Stop Power of Sale/Foreclosure process, etc.

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A & B Lender

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Private Mortgage

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Home Purchase Mortgage

First Mortgage (1st Mortgage)

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Bad Credit Mortgage

Equity Take Out/ Home Equity Loan

Debt Consolidation/ Home Renovation

STOP Power of Sale / Foreclosure

Income Tax Arrears/ Mortgage Arrears

Property Tax Arrears/ Consumer Proposal

Low Interest Rates & Low Fees

Up To 90% LTV Approved

Self Employed= OK!

Low/No income= OK!

Bad Credit= OK!

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NO Income Documents Required!

Quick Quotes (10-15 Minutes)

Fast Approvals (3-4 Hours)

Fast Closing (24-48 Hours)


In order to get approval for a Private Mortgage, borrowers are required to have a certain percentage of equity in their property which is referred to as, LTV (Loan to value). LTV is the available equity in the borrowers property. The borrower also needs to have a minimum down payment of at least 20% or greater of the purchase price or the appraised market value of the property.


An urgent Private Mortgage closing can be approved and funded within 24 to 48 hours. A normal request, however, can take anywhere between 4 to 10 days. This is because a Private Mortgage sometimes requires an appraisal inspection which can take some time to arrange for (depending on the availability of the appraisal companies).


A Private Mortgage does not have any negative impact on the credit score of the borrower. In fact, borrowers sometimes undertake a Private Mortgage in order to Consolidate their debts and to improve their overall credit situation and score. Unlike a bank Mortgage, A Private Mortgage will not appear in the borrower’s credit bureau report.


The interest rates for a Private Mortgage vary based on the available equity in the property. Other credentials such as the borrower’s credit score and income level may also affect the Private Mortgage interest rates.

First Private Mortgage interest rates are generally between 5.99-6.99% and Second Private Mortgage interest rate are generally between 7.99-9.99%. However, it is case by case as each borrower has their own given unique situation. Also, Generally speaking, the lower the Loan To Value = The lower the rate of interest will be.

Hamilton, Ontario

I had a very pleasant experience working with Shawn Sef at Equity Mainly Matters Loans. We contacted Shawn looking for help in order to pay off our high interest credit card debts. Shawn made the process very easy for us by explaining the Mortgage loan details for the Debt Consolidation Mortgage Solution which he recommended for us. Shawn was actively present every step of the way and was very knowledgeable. I will definitely recommend Shawn to my peers due to his knowledge, professionalism and expertise.

Brampton, Ontario

Shawn is extremely passionate about his job. Shawn always demonstrates a positive and professional attitude. His easy going and friendly personality always makes the experience of working with him fun and stress free. Shawn made the entire Mortgage loan process very simple for me to which I’m thankful for. Shawn is very proactive and updates me on a regular basis in regards to my file.

Markham, Ontario

Me and my husband had never worked with a Mortgage Broker before. I needed to consolidate all of my debts. I was paying high monthly interest fees to my creditors and my bank informed me that I couldn’t get approved with them because of my low credit score. Shawn did an excellent job by helping me consolidate and pay off all of my various high interest debts. I’m now debt free. My credit score has improved and I don’t owe creditors any monthly high interest payments. We went from paying $1,650 month towards our credit card debts and loans, to now paying only $520 month which helped us build up a good savings. Shawn rescued us from our creditors and helped us save an extensive amount of money for our families future.


As a first time home buyer, we required a Mortgage broker who was willing to be very patient with us and to explain every detail of the Mortgage loan process and provide us with as much information as possible. Shawn informed us of the exact required down payment amount (based on the types of lenders that we qualified for), fees, closing costs, Land Transfer tax etc. Shawn was very good in providing us with accurate rates, figures and calculations which we realized we could afford the monthly Mortgage payments and make the Home Purchase work. One other important factor was that Shawn kept on top of our file by updating the progress every step of the way which was very important to us. Shawn is very proactive which we appreciated!

Toronto, Ontario

Shawn helped our family obtain a low rate 2nd Mortgage from a Private Lender. Banks turned us down as we failed to meet their requirements for the stress test, income and credit criteria. However, Shawn was able to find various Private Lenders/Investors that were interested in making us an offer and we ended up taking a great offer for a 2nd Mortgage which made the most sense for us. We will definitely refer our family and friends to Shawn in the near future. I can’t say how much I appreciate all the time and effort Shawn put into our file.

Mississauga, Ontario

Shawn demonstrates excellent customer service skills. He’s always very quick to respond to my emails and calls. Shawn helped me get approved twice in the past year alone and I hope to work with him again in the near future. Shawn was very friendly, attentive and dedicated his time and effort by providing me with solid knowledge, expertise and advice which in return helped the process of purchasing my first home very easy and stress free. Shawn even followed up on my behalf with my lawyer in order to finalize all the details. I would highly recommend his services.

Ottawa, Ontario

From the first time I spoke with Shawn Sef, I felt comfortable and at ease which was due to his calm and patient personality and attitude. He was also very understanding and caring to our current situation and needs by providing the best course of action for us to take which made the most sense for our family. Shawn is very knowledgeable within the mortgage field and delivered exactly what he said he would. He even provided us with accurate closing/funding dates from day one. I would definitely recommend Shawn Sef to any borrower looking for a good
Mortgage broker.

Toronto, Ontario

Shawn had helped my wife and I obtain a 2nd Mortgage from a Private Lender last year. We used the majority of the Mortgage loan proceeds to help renovate/upgrade our home. Once the refurbishments had concluded, we ordered a new appraisal and noticed that our house value had increased substantially. The following year, Shawn helped us refinance both our Institutional and Private Mortgages into a new low rate, 1st Mortgage with an A Lender (Bank) which is going to help us save an extensive amount of money in monthly payments moving forward. I’m very thankful for Shawn’s knowledge, skills and expertise within the mortgage industry which ended up helping us save thousands of dollars.