Private Mortgage Lending

Private Mortgage Lending

Private Mortgages for People Like You?

The mortgage industry is big.  Although that means there are many mortgage options available, most of them are tailored to a few “typical” situations that apply to most people.

What if you are not “typical”?   What if you are not like most people?

Alberta Mortgages prides itself on being able to find the right mortgage for everybody, no matter what their situation in life, finances or business.  We look beyond the banks, beyond the trust companies and beyond traditional lenders. Alberta Mortgages taps into an extensive network of private investors who are ready to look at your individual borrowing needs – without the constraints of having to fit your borrowing needs into their “matrix” or within strictly regulated government criteria. If you find that borrowing through a traditional venue does not meet your needs for the amount you wish to borrow, the repayment schedule, the method of repayment or the security you are offering against the loan, you might be better off seeking funds through private or non-traditional sources. Please fill in the mortgage application form at to get started right away, and in the “Comments” section, please let us know what is special about your situation that might require a non-traditional mortgage. The interest rate that you will pay on a private loan might not follow published mortgage rates, so you will want to be prepared for that.  Several factors will affect the rate you pay, including:

  • The type of property you are buying.
  • The property you are offering as security.
  • The equity you will have in the property you are buying.
  • All the usual financials of you and your business, (or lack thereof, if applicable).
  • The amount you want to borrow.
  • The lender’s estimation of the risk involved, often more of a business decision than a formulaic calculation

Unlike banks and trust companies, credit history and liquid assets play a smaller role in whether to lend you the needed money.  Although private loans can come in any amount and on any terms, they are usually short-term loans, often for just one year.   The provide emergency funding in the event that you need to make an investment before you have funds available, or if a medical or family emergency delays revenues, just to name two typical situations that regular mortgages don’t cover . Here are a couple examples of situations that would not qualify for traditional mortgages, but were both of keen interest to private lenders.  In both cases, the funds were required on a short-term basis, as bridge financing until revenues from the projects were realized.

Two seniors from a small community near Calgary were unable to qualify for a short term loan from their bank of nearly 35 years to help pay for renovations to their property prior to listing for sale to fund their retirement, because they no longer were able to provide the income documentation that they had in the past to their bank, despite having over $600,000 in equity in their home. Alberta Mortgages arranged a private second mortgage, the client’s renovated and sold their property within a year and maximized their return and retirement savings.
A self employed businessman from northern Alberta, with excellent credit, a strong earnings track record, and in excess of $400,000 in equity in his home was unable to refinance his existing mortgage to pay an outstanding debt to CRA with his bank of 20 years. Alberta Mortgages arrange a private second mortgage as a bridge loan to payout the amount his owed to CRA and then subsequently refinanced his first mortgage to payout his current bank and the private second mortgage with a new institution that provided lower rates and better terms.
A couple in Calgary found themselves over extended in credit card debt as a result of the wife having to take a leave from her employer to care for an ailing parent in another province. Their credit score declined below the minimum required for a refinance of their first mortgage with their existing bank, despite having in excess of $200,000 in equity in their home. Alberta Mortgages arranged a private second mortgage to payout credit card debt and other loans, consolidating into one monthly payment, and when the wife returned to her job, and their credit score improved, AM refinanced their first and second mortgage to a new first mortgage with better rates and terms than their mortgage with their previous lender.
The developers of a condominium project in Fort McMurray needed over just over $1 million dollars in mezzanine financing to build the first phase of a $14 million dollar complex. Financing the first phase was the toughest, so Alberta Mortgages went to private lenders and successfully negotiated the loan that made the three-year construction project possible.

How does the private lending process work?

It starts off the same – we still need to know all the basic details and information about you and about the project.  After that, private lending takes its own path.

A property appraisal might not be required, for instance.  Appraisals work best for properties surrounded by similar properties.  The more unique a property or its location, or for properties yet to be built, the less important an appraisal is.

Long terms are fairly rare, since private lenders don’t want to wait 20 years to realize their profit.  So they will be looking at the short-term potential  of your situation or project, such as with construction or if you need bridge financing to buy one property while another waits to be sold.

A credit history is also much less important to private lenders, since they will be looking at the specific property and its short-term potential.  How you have managed your credit cards over time has much less bearing on a short-term loan than on a mortgage that requires monthly payments for 20 years.

Very often, the loan will be due in full at the end of the term, rather than through monthly payments.  This is critical for bridge financing, where repayment is possible only when a property sells or in development projects, when pre-sales of units reaches a certain critical mass.

Whatever you unique situation, we can arrange the loan that makes your dreams or business plans come true.  Just fill in the form at to let us know what you need.