The property market in Markham is so hot and competitive now that it is already ranked among the best in the Greater Toronto Area. Many people in Markham are looking to private lenders as their quickest and most flexible mortgage solution due to a combination of limited housing supply, rapid population growth, and increased tech industry hiring. These non-bank funding sources have been a key factor in making funds available when traditional banks either refuse or delay loan approval.
Understanding the Role of Private Lenders
Private money lenders, composed of individuals, mortgage investment corporations (MICs), and small private firms, are not operating through traditional banks. They give preference to a property’s equity in mortgage approvals most of the time, rather than the borrower’s income or credit score, making it a good alternative for people in self-employment, real estate investing, and those with bad credit histories. In Markham, where housing prices are the highest in York Region, this method is beneficial. Private lenders regulated by the Financial Services Regulatory Authority of Ontario (FSRA) can grant loans in a matter of days and offer flexible repayment plans tailored to each borrower’s case.
Why Private Mortgages Are Growing in Popularity in Markham
The flexibility of private mortgages is the main reason many homeowners in Markham are interested. To put it another way, while traditional lenders are stringent, take a lengthy underwriting process, and require extensive documentation, private lenders focus mainly on the property’s equity and the borrower’s exit plan. Therefore, they are well-suited for homeowners who need finance to cover the gap between selling and buying, paying tax, or undertaking major renovations.
Markham’s vibrant local economy, in particular its status as a hub for technology and innovation, attracts numerous workers with non-traditional income sources (e.g., contract work, freelancing) to the local market. Consequently, such borrowers often seek out lenders more open to non-standard income verification. Private money lenders are taking the place of banks in financing needs such as home improvement, debt consolidation, and quick cash, at least not to the same extent.
Common Reasons to Get a Private Mortgage
A private lender wants to know why you will need the money. There are many unique reasons, but some of the more common ones include:
- To pay off high interest debts such as credit cards
- For renovations or repairs to your home
- Loss of job or other income source
- To stop a power of sale or foreclosure proceedings
- To pay education fees
Some people come to private lenders after they’ve been turned away by the banks. Markham private lenders specialize in financing for people with bad credit or low incomes.
They develop plans that help clients improve their credit scores in the future.
Fast Private Financing
Most large lending institutions have lengthy approval processes. This can cause issues with time-sensitive deals. Our large network of Ontario private lenders can provide loans in Markham and the rest of the GTA. Our brokerage has close relationships with all of Markham’s lending firms and their lawyers. We can provide fast financing for deals with tight time constraints.
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 some costs to expect as of December 2024:
- Interest Rates: Typically between 8% and 12%
- Lender Fees: Usually between 2% and 4%
- Broker Fees: Set to match the lender fees, which are usually 2% to 4%
- Appraisal Fee: $500 + HST for single-family homes in Ontario. Larger or unconventional properties will cost more.
- Legal fees: These range from $1,000 to $3,000, depending on the mortgage request.
How Loan-To-Value Shapes Private Lending Terms
The Loan-to-Value (LTV) ratio, a key component of private mortgage lending, is calculated as the loan amount divided by the property’s appraised value. A lower LTV ratio allows the lender to maintain a larger equity cushion, which, in turn, reduces risk and ultimately leads to better rates for the borrower. In Markham, where the average price of detached houses is over $1.4 million (per local boards’ data), many private lenders are willing to lend at 75%-80% LTV, depending on the robustness of the exit strategy and property type. Markham appraisal companies like Apex Appraisal – Markham or Premier Appraisal Services can provide appraisal reports for borrowers that will reflect reliable valuations.
Private loans are typically short-term (usually six to twenty-four months). Therefore, LTV and an exit strategy are of utmost importance to ensure the borrower has the option to refinance or sell at the end of the term. Please see the chart below for Markham Pricing (matches our published Lending Guidelines & Pricing). Reference: Mortgage Broker Store – Lending Guidelines & Pricing
| Markham LTV Band (York Region) | Interest Rate Range | Combined Lender + Broker Fee | Notes |
| Up to 55% LTV | 7.75% – 8.25% | 4.00% | Strong pricing for detached and semi-detached homes. Markham’s resale activity is consistent, and risk is lower than the average Ontario suburban market. |
| 56% – 65% LTV | 10.00% – 10.50% | 5.25% – 5.75% | Standard band for refinances, equity takeouts, and arrears-related files. Borrowers in this tier usually maintain substantial equity relative to average markets. |
| 66% – 70% LTV | 11.25% | 5.75% – 6.00% | Applied when the exit plan requires strong documentation or when the property type carries above-average risk. Condos receive closer review due to differences in building governance. |
| 71% – 75% LTV (Typical Max) | 12.00% | 6.00% | Requires a well-supported exit strategy, such as a confirmed refinance or sale. Properties with slower marketability or weaker condo financials may not qualify. |
What You Need to Know About Fees
Your mortgage amount includes specific fees, such as lender, broker, and legal, which are included in your mortgage amount and count toward the LTV. If your request is already at 75% LTV before fees are added, you might exceed the limit and not get approved. Appraisal fees are typically not included in the LTV and are paid by the borrower directly after the inspection is performed.
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%.
Information on Markham Real Estate
Markham MLS® stats for April 2024 indicate there were 643 new listings in the town in 17 days. The average sold price for the same period was $1.4 million. That represents a positive monthly change of 3.7%. The quarterly change was an increase of 10%. The YoY difference was a slight decrease of 6.1%.
Market Conditions Driving Private Lending in Markham
Markham’s real estate market still holds the title of the most active one in Ontario. Limited supply, rising land and housing prices, the migration of tech workers, and infrastructure investments together have created a somewhat difficult housing market. The local economy, as illustrated in the Markham Economic Profile 2025, is characterized by phenomenal growth and a significant corporate presence that not only attracts but also retains lenders and borrowers in the market.
Private lenders cannot be replaced, as they are the ones who inject liquidity into the market and make acquisitions, renovations, refinancings, and developments possible. In times when banks impose more onerous regulations or take longer to grant loans, private lenders step in to support borrowers and investors in the already tough Markham market.
Finding the Right Private Lender in Markham
Private lender selection in Markham is a process that necessitates thorough groundwork and the employment of professional mediators. The first step is to recruit a licensed mortgage broker specializing in private lending who can attract lenders by providing tailored solutions. To do this, borrowers are encouraged to check the FSRA’s public registry of licensed brokers and mortgage administrators to verify credentials.
Interest rates, fees, renewal terms, pre-payment options, exit strategy and penalties should be clearly stated in the loan documentation. Legal review is highly recommended, and borrowers in Markham can seek assistance from reputable real estate law firms, such as Cattanach Hindson Sutton VanVeldhuizen LLP, for contract review and legal advice. More are listed at the end of this article.
The process of finding quick and adaptable financing in Markham can be gruelling. Still, it is worthwhile, as it provides a guarantee of safety by comparing three or more offers, consulting reviews, ensuring that the lender and broker are licensed, and so on.
The Growing Role of Private Mortgages in Markham
Private lenders in Markham have been a necessity in the housing finance sector, providing fast, flexible funding that is not comparable to that offered by traditional banks through mortgages. These loans also come with higher rates and shorter repayment terms. But still, they are essential because borrowers with non-standard income, urgent timelines, or special property requirements can always count on them.
Private mortgages are a valuable tool in the real estate market in Markham, characterized by high prices, provided that borrowers are knowledgeable about essential factors such as Loan-to-Value ratios, cost structures, and exit strategies, particularly when working with licensed professionals. Private lending has shifted from a fallback option to a powerful tool for both home buyers and investors in Markham’s property market.
Highly-Rated Local Professionals (Markham)
Real-estate lawyers (refinance/purchase/sale)
- Real Estate Lawyers – Full-service Ontario real-estate law firm with fixed-fee purchase, sale, and refinance services.
- Siu Law Professional Corporation – Strongly rated local law office focusing on real estate closings and commercial property work.
Appraisers
- Assurance Appraisals – Residential appraisal services across York Region, including Markham; lender-accepted valuations
- Walson Consulting – Accredited GTA appraisal company used for residential valuations, often covering Markham.
Home inspectors (Markham)
- Clarified Home Inspections – Highly rated York Region inspection service covering Markham, with detailed digital reports.
- Pillar To Post Home Inspectors – Franchise inspectors serving the Markham-Unionville corridor with standardized reporting.