Private and bank mortgages serve different needs. Knowing the trade-offs helps you choose the right tool. Here is an honest comparison.
Bank mortgages: lower cost, stricter rules
Banks offer the lowest rates and longest terms, but they underwrite strictly — verifiable income, strong credit, and properties that fit their box. Approvals can be slow, and a single weak spot can lead to a decline.
Private mortgages: faster, more flexible
Private lenders move quickly and lend on equity and common sense, accommodating credit issues, unconventional income or properties, and tight timelines — at a higher rate and shorter term.
How to decide
If you qualify comfortably and have time, a bank is usually cheapest. If you have been declined, need to close fast, or have a short-term plan, private financing may be the smarter route despite the cost.
The best of both
Often the winning strategy is to use a private mortgage now and refinance into a bank later. A broker who works with both can map that path from the start.
How Gurpinder Gaheer can help: Private Mortgage Lending in Ontario · Book a free 30-minute consultation