Are Private Mortgages Just for Bad Credit?


Many people have the misconception that a private mortgage is just for people who have bad credit – but this is completely wrong! Just because you have bad credit doesn’t mean you need a private mortgage, and just because you have good credit doesn’t mean you can’t get one. Each lender will offer different things to different people, but if you want to find the best lender you’ll want to work with us! We’re Toronto mortgage brokers and we understand ins and outs of the private mortgage trade. We don’t work for the lenders, we don’t work for the banks – we only work for you.

What Is a Private Mortgage?

  • Private mortgages are just like bank mortgages
  • The only thing that’s different is the lender that you’re working with is a private citizen or company.
  • They lend money to make a profit
  • But since they have a smaller group of investors they’re able to be a bit more flexible
  • And offer local customer service that can really make the difference.
  • It’s important to note that aside from the lender
  • Very little is different from a conventional bank mortgage

Does A Private Mortgage Work Any Differently Than a Conventional Mortgage?

  • Private mortgages work just like your bank mortgage – there’s still an application process, you’ll still have to pay your mortgage each month, and there’s still interest to pay on too!
  • They may offer a private banker to work with you that offers additional services
  • And they may also have special services for people with bad credit.
  • Whatever you do, you’ll want to make sure that you’re getting the mortgage that’s right for you! That’s where we come in
  • We’re Toronto mortgage brokers that are here to help you get the most from your next mortgage

Understanding Bad Credit Mortgages bad credit mortgage isn’t a bad thing

It just means that this mortgage has been specially formulated for people with bad credit. There may be some more flexible payment options, you might have a lender that calls you before your payment is due each month to remind you to pay, and you may be able to get some special credit boosting perks that will help you get your credit back on track. Each lender will be different, so it’s important to really understand what they’re offering before you decide to work with them.

Great Credit Is Okay Too! You don’t have to have bad credit to get a private mortgage

In fact some only work with people with great credit. They’ll offer perks like private bankers that will answer any questions you have, preferred lending programs with portable mortgages and super low interest rates and more.

Before you start looking at private mortgage lenders, give us a call. We’re Toronto mortgage brokers that understand how to find you the lowest interest rate, the lowest monthly payment and the best lenders for your needs.
Why do it on your own when you can have a friend in the lending business?
Erin Thompson is a mortgage broker and financial blogger for Homebased Mortgages.


  • Is a Toronto mortgage broker that provides
  • Home mortgages
  • Mortgages for the self-employed
  • Home equity loans
  • And lines of credit
  • Debt consolidation
  • Private mortgage and
  • Second mortgage lending

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