Current Private Mortgage Lender Rates in Ontario
Tired of searching for "private mortgage rates" only to be met with generic or confusing information?
You're not alone.
The financial industry often makes it frustratingly difficult to find a clear answer—especially if your situation isn't a straightforward one.This guide changes that.
We've compiled a transparent, no-fluff resource that cuts through the noise and gives you the real information you need about private mortgage rates. As a specialized mortgage brokerage, our job is to help homeowners across Ontario find solutions tailored to their unique financial story.
Ontario Market Rates
Rates updated Sep 24, 2025
Current Private Mortgage Rates
Private Mortgage(1st)
Home Equity Loan(2nd)A private 1st mortgage is a strategic solution for buyers needing to purchase a property quickly, acting as a bridge until a conventional mortgage is secured. It also serves as a crucial lifeline for homeowners facing foreclosure, providing funds to pay off their current lender and avoid defaulting.
A private 2nd mortgage, also called a home equity loan, is a tool often used for debt consolidation, significantly lowering monthly payments and interest rates. It can also provide a lump sum of cash with a fixed payment for home renovations, allowing you to manage costs with confidence.
Get Your Personalized Rates
The single greatest benefit of working with a broker is access to the entire market.
While a bank can only offer you its own products, we can shop across a vast network of lenders to find the one that best suits your needs and offers the most competitive second mortgage rates. Our streamlined process is designed to give you a clear path to approval.
More solutions- Faster approvals
- Better rates
Your Hassle-Free Mortgage Approval
Backed by 2,000+ 5-star reviews, you can get a free online estimate, see your borrowing options, and review the best offer, all from the comfort of your home, supported by our award-winning team.
- 1
Get a Free Online Estimate
Use our proprietary online calculator to find out how much you can borrow with a private mortgage and what your estimated monthly payments will be. It's a quick and easy first step that gives you the numbers you need to start planning.
- 2
Credit Summary Report
Our team will generate and review a digital credit summary report to help you understand your financial picture. This report is a clear snapshot of your credit, debt, debt-to-income ratios, and available equity. This information allows us to identify your strengths and weaknesses so we can match you with the right lenders.
- 3
Offer to Finance
Once approved, you will receive a digital offer outlining all the details of your private mortgage. This includes the interest rate, monthly payment, and a clear breakdown of all fees. We ensure every detail is transparent, so there are no surprises on closing day.
What Determines Your Rate?
Your private mortgage rate is a reflection of a lender's risk assessment of your unique financial profile. Below is a list of key factors in the order of importance that private mortgage lenders meticulously evaluate to determine the rate they are willing to offer you.
- 1
Your Loan-to-Value (LTV) Ratio
The Loan-to-Value (LTV) ratio is arguably the most critical factor. It is the percentage of your home's value that is being borrowed. Lenders prefer a lower LTV because it means you have more equity, which reduces their risk.
How it works:
Your LTV is calculated by dividing your total mortgage debt (including the new home equity loan) by your home’s appraised value. For example, if your home is worth $1,000,000 and your existing mortgage is $400,000, and you want to borrow an additional $200,000, your new LTV would be 60%.
- 2
Your Property Type and Location
Not all properties are viewed equally by lenders. Urban, single-family homes in major markets like the GTA are generally considered lower-risk because they are highly marketable and easy to sell. Unique or rural properties, on the other hand, are seen as higher risk due to a smaller buyer pool. A broker can help you find a lender who specializes in your specific property type and location.
Lower Risk Properties:
- Single-family homes in urban areas
- Properties in major markets (Toronto, Mississauga, Oakville, etc.)
- Standard residential properties
- Properties with good resale potential
Higher Risk Properties:
- Rural or remote properties
- Unique or specialized properties
- Properties in smaller markets
- Properties with limited buyer appeal
- 3
Your Income and Employment
Hourly or Salaried
- Recent pay stubs and T4s
Self-Employed
- Bank statements
- Notice of Assessment
Solution: B Lenders
Credit or Income Issues
- Marketable property
- Enough equity (lower LTV)
- Exit strategy
Solution: Private Lenders
- 4
Your Credit Score and History
While private mortgages are secured by your property, your credit history still matters. Your credit score and report demonstrate your past ability to manage debt. A higher score can secure you a better rate. Private lenders are more flexible compared with traditional banks and B lenders. They specialize in helping borrowers with bruised credit by consolidating debt, which helps them rebuild their credit score and eventually qualify for a lower-rate mortgage with a traditional lender.
Your Private Mortgage Closing Costs
When you take out a private mortgage, the interest rate is just one part of the total cost. Much like a real estate transaction, you will have to budget for closing costs.
Out-of-Pocket Costs
These are the costs you will pay before your private mortgage closes.
Appraisal Fee: A private mortgage is secured by your property, so a professional appraisal is mandatory to determine its current market value. An appraisal typically costs around $450.
Costs Included in the Loan
In most cases, these costs can be built into your private mortgage, so you do not have to pay them out of pocket.
Lender and Brokerage Fees: Lenders and brokerages that specialize in alternative and private financing often charge a one-time fee, typically ranging from 1% to 4% of the loan amount. These fees compensate the private mortgage lender and the broker for the increased risk and specialized expertise required to underwrite your specific deal.
Legal Fees: As the loan is registered as a charge against your property's title, you will need a lawyer to handle the transaction on your behalf, and the fees will depend on the complexity of the deal.
Example Closing Costs
- Private Mortgage Amount$100,000
- Appraisal$450
- Lender Fees$3,000
- Legal Fees$1,950
Net Cash$94,600
Get Approved Hassle-Free
Using a Private Lender as a Solution
A private mortgage can be a 1st or 2nd mortgage from a private individual or company, not a traditional bank. This can be a solution for borrowers who may not qualify for a conventional mortgage. Common uses cases include:
Purchase a Property (1st)
A private mortgage is a strategic tool for buyers who need to secure financing for a property quickly, especially in time-sensitive situations. It provides the funds you need for the purchase, acting as a bridge until you're able to qualify for a traditional mortgage.
Avoid Mortgage Default (1st or 2nd)
When a homeowner faces the threat of foreclosure, a private mortgage can be a strategic lifeline. You can get a private second mortgage to catch up on missed payments, or a private first mortgage to pay off your current lender. This helps you avoid defaulting on your mortgage, giving you time to improve your financial situation.
Debt Consolidation (2nd)
A homeowner with a $50,000 credit card balance is likely paying a minimum of $1,250 a month with an interest rate of 19%. By consolidating that same debt into a private second mortgage (home equity loan), their monthly payment could be reduced to as little as $450 with an interest rate at 10.99%, saving the same homeowner close to $9,000 per year.
Home Renovations (2nd)
If you have a one-time renovation project with a defined budget, a private second mortgage (home equity loan) can be an ideal financing tool. It provides a lump sum of cash with a fixed payment, allowing you to lock in your costs from the beginning without worrying about fluctuating interest rates.
Why Choose 360Lending?
Finding the best private mortgage rates requires professional guidance to simplify the process and ensure you get the right solution and pricing. At 360Lending, our cutting-edge digital tools and expert brokers provide our clients with unparalleled access to the best options.
Digital and Hassle-Free
Our process is designed for a seamless, digital-first experience. From using our online calculator to get an instant estimate to receiving your digital credit summary and final offer, we've removed the stress and paperwork from the traditional application process. Our platform provides you with a clear, step-by-step path to approval, all from the comfort of your home.
Supported by Human Expertise
While our process is digital, it's not automated. Our team of expert brokers provides exceptional customer service and is here to support you at every stage. We'll negotiate on your behalf with lenders to secure the most favourable terms and rates. Our job is to be your advocate, ensuring your financial story is presented to the right lender to get you the best possible outcome.
Access to the Whole Market
We don't work for a single bank. We work for you. We have established relationships with a vast network of over 100 lenders, including prime banks, B-lenders, and a curated list of reputable private lenders. This allows us to shop for the one that best suits your needs, not just the one product a single institution offers.
Over 2,000 5-Star Reviews
360Lending empowers families with tools for better decisions and prioritizes client care for success.
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