Private Mortgage Lenders in Brampton

Different Types of Private Mortgage Lenders in Brampton 

A mortgage lender is an individual, business, or institution that offers loans to borrowers to purchase property. If someone wants to get a mortgage in Brampton, they will need to work with a mortgage lender. Not all mortgage lenders are the same; there are different types of mortgage lenders, each with its own requirements and criteria that must be met before they approve mortgage financing.

Most mortgage lenders define their criteria based on credit scores and household income. They will base an applicant’s suitability largely on overall income sources and creditworthiness.

Ontario-based mortgage lenders can be classified under three broad categories:

• A Lenders- Banks represent this category of lenders. Mortgage approval can be quite rigorous. Lenders routinely subject applicants to tough mortgage stress tests to determine eligibility. Tighter mortgage stress rules as of June 1, 2021, have increased the difficulty of obtaining mortgage financing. Banks also prefer to use easy-to-calculate, substantial household income when approving mortgage loan parameters.

• B lenders- Credit unions and trust companies comprise this category of lenders. While not quite as stringent as the banks when determining mortgage loan approval, these lenders still expect to see a credit score of at least 550 and above and prefer traditional, substantial yearly household income.

• C Lenders- Private lenders make up the final category of lenders. Private lenders are often sought after by borrowers with poor credit, as they can look beyond credit scores by assessing other criteria.

What Sets Private Loans Apart from Traditional Mortgage Loans?

Just as the degree of lending opportunities in Ontario varies, so are the types of mortgages borrowers can get. Irrespective of loan type, private loans in Brampton differ significantly from bank and traditional lender loans in various aspects.

Private mortgage loans are usually structured as short-term loans. Private mortgage financing aims to fulfill immediate financial goals. Most private mortgage loan terms range from 6 months to 3 years compared to 5 to 25 years for mortgages with banks.

Unlike traditional lenders, private lenders prioritize other loan factors over poor credit, where credit heavily influences approval. People turn to private lenders after conventional rejections due to low credit, self-employment, or non-residential property purchases.

Costs Involved in A Private Lender Mortgage

Private mortgage lenders are more expensive than any other type of mortgage lender. There are no standard costs, but most lenders try to offer rates and fees that are competitive with other lenders. Here are the costs to expect as of September 2026. Our full rate and fee tables are on the lending guidelines and pricing page, which we update as market conditions change.

1. Interest rate: 8% to 12%, set mainly by loan-to-value.
2. Lender fee: 2% to 3% of the mortgage amount, also set by loan-to-value.
3. Broker fee: for direct borrower inquiries, Mortgage Broker Store charges a broker fee equal to the lender fee. The lender fee and broker fee together never drop below $3,500.
4. Other costs, outside the rate and fees: application fee, $375; appraisal, $600 + HST for a single-family home (larger or unconventional properties cost more), paid by you up front, directly to the appraiser; legal fees, $1,500 to $3,000 depending on the file, covering the lender’s lawyer and your own independent legal advice, paid out of the mortgage proceeds on closing.

Total charges, worked example: on a $325,000 first mortgage at 65% LTV in Brampton, the lender fee (2.25%) is $7,312.50 and the broker fee (2.25%) is $7,312.50, so $14,625 in fees, plus the application fee, appraisal and legal costs.

How LTV Affects Costs

The loan-to-value (LTV) ratio plays a big role in determining your costs. The closer your mortgage is to the maximum LTV, the higher your rate and fees, because lenders see higher LTVs as riskier. In Brampton, Mortgage Broker Store lends directly up to 65% LTV. Homes in Brampton are currently taking longer to sell than in Toronto, so we cap a little lower there, as set out in our lending guidelines and pricing. Some outside private lenders may go higher in Brampton, but expect steeper pricing at the top of their range. Treat any 75% figure you see elsewhere as a general market example, not our criteria. Calculate this ratio by taking all existing mortgages plus all proposed mortgages and dividing by the appraisal value.

Here’s an example of how costs can vary based on LTV:

LTV (%)	Interest Rate (%)	Lender Fees (%)	Broker Fees (%)
50%	8.49%	2%	2%
60%	9.49%	2.25%	2.25%
70%	10.49%	2.5%	2.5%
75%	11.49%	3%	3%

Above 65% LTV we do not lend directly in Brampton. Second mortgages are priced on the combined loan-to-value; see the second-mortgage table on our pricing page.

What You Need to Know About Fees

Lender fees, broker fees and legal fees come off the mortgage advance, so they form part of the mortgage amount and count toward the loan-to-value. If your request is already at 65% LTV in Brampton before fees are added, the fees can push it over our limit, and the mortgage amount may need to come down. The appraisal is paid by you up front, directly to the appraiser, and is not included in the mortgage amount or the LTV.

A good mortgage broker will provide documents that clearly outline all costs related to the mortgage, and whether or not they are included in the mortgage amount. Reviewing the costs with your broker is always a good idea to make sure they fit your financial plan.

When applying for private mortgage lenders in Ontario, you must state why you need the money. Private lenders are usually lenient and will accept the most reasonable responses.

Some popular responses include:

• To pay off high-interest credit card debt
• To pay for home repairs or renovations
• To cover living expenses after a work layoff
• To stop a power of sale or foreclosure
• To pay tuition fees for college or university

In many cases, borrowers approach private lenders for mortgages and loans to help consolidate existing debt or prevent property loss through foreclosure or power of sale proceedings. Many people juggle multiple types of debt at once. For example, as noted above, you might have a mortgage and a significant amount of credit card debt or outstanding student loans. Since mortgage and student loans are owed to different collectors, you may have to keep track of multiple monthly debt payments. A mortgage from a private lender can be enough to pay off what remains on your mortgage and your student loans. Upon settling individual debts, you’ll have a monthly payment to your lender, simplifying your financial obligations. Many borrowers find this an easier way to manage debt.

People who cannot qualify for a low-interest rate loan at a bank are the kind of clients that private lenders seek out. Our private lender network can provide mortgages to people turned down by banks. Most private lenders will offer a rate between 8% to 12%.