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Private Financing: Your Smart Short-Term Mortgage Solution

Sometimes the banks just don’t get it. Maybe your income doesn’t look “traditional” on paper. Maybe you have multiple rental properties and the banks have hit their lending limits. Or maybe you just need a quick cash injection to finish a construction project so you can refinance or sell.

This is where private financing steps in as a strategic, short-term solution.

Instead of focusing on the interest rate, think of private financing as a financial bridge—a way to move forward with your goals today without being stuck in bank red tape.

When Private Financing Makes Sense

  • You need fast approval – Private lenders can often fund in days, not weeks.
  • You’re finishing a project – Bridge the gap to complete a construction or renovation so you can refinance or sell at top value.
  • Your situation is unique – Self-employed income, credit bumps, or a large property portfolio that traditional banks won’t touch.
  • You need breathing room – Consolidate debt, wait for a home to sell, or get equity out fast.

The Real Costs of Private Financing

Private mortgages do cost more, but remember: they’re temporary. Here’s the breakdown:

Interest Rates:

  • 6–10%, depending on your Loan-to-Value (LTV)

Fees:

  • Lender Fee: 1–2% of the loan amount
  • Broker Fee: 1% (added to cost)
  • Legal Fees: Approximately $3,000

Example – $300,000 Loan:

  • Interest: 6–10% (for 6–24 months)
  • Lender Fee: $3,000–$6,000
  • Broker Fee: $3,000
  • Legal Costs: ~$6,000 (you must cover your legal fees and the lenders)
    • All costs can be included in the borrowed amount so that you are not paying for it out of pocket.

Why It’s Worth It

Private financing is not your forever mortgage. It’s a short-term tool that:

  • Buys time to complete projects or reorganize finances
  • Opens doors when banks say no
  • Keeps your plans moving forward without missed opportunities

With a clear exit strategy—like refinancing with a bank or selling the property—you can leverage private financing to unlock big opportunities now and transition to lower-cost lending later.

Your Next Step

If you’re facing a tight timeline, a unique property, or a project that the banks just don’t understand, private financing might be the bridge that gets you to the finish line.

Let’s talk about your options and create a plan that makes sense for your short-term needs and long-term goals.