Private Mortgage in Burlington: What It Costs and How You Get Out
A private mortgage is a loan from a lender that isn't a bank, secured on your home. Here's what one costs in Burlington and how you get back to a bank.
Jenny Tate, Mortgage Agent Level 1 · FSRA #M22002086
Last updated:
60+ Google reviews, rated 5.0Burlington office
What it costs. Representative example: a $150,000 private second mortgage for a 12-month term at 10.99%, with fees, costs $26,985 in all, an Ontario disclosure APR of 17.99% (the interest and fees together, as one yearly rate). You pay $1,373.75 a month in interest and repay the $150,000 at the end.
What it is. A short-term bridge, usually for one or two years (FSRA), based mostly on your home's value. I offer it through my brokerage, Tango Financial, where a Level 2 agent or the broker arranges it (Level 1, my licence, covers banks and other financial institutions; Level 2 agents and brokers can also deal with private lenders).
Bank or B lender first. Check whether a bank or a B lender (a lender outside the big banks, such as a trust company or credit union, that takes some files a bank won't) can say yes; they usually cost less.
Way out. Go in with a written exit plan back to a bank before you sign.
Which route fits you
Private is one of three routes, and it's the last one. Here's how they compare.
Bank
- Who it's for
- Income and credit that fit the bank's rules, including the stress test.
- Term
- The lender's standard terms, set in its offer.
- Cost
- Usually less than a B lender or private.
- Way out
- None needed: renew or switch when the term ends.
B lender
- Who it's for
- The bank can't count enough of your income, or your credit has a recent problem.
- Term
- Set in the lender's offer; ask what renewal looks like.
- Cost
- Usually more than a bank.
- Way out
- Show the income or credit a bank needs, then move to a bank at renewal.
Private, through my brokerage
- Who it's for
- A bank and a B lender said no, or the timing is too tight: arrears, tax debt, a past consumer proposal, or a lender that won't renew.
- Term
- Usually one or two years (FSRA).
- Cost
- The most: a higher rate plus fees, over a short term.
- Way out
- A dated plan back to a bank or B lender before the term ends, or a sale.
Private lenders often lend based on your home's value instead of your income. FSRA says your agent should be able to explain why you don't qualify for lower-cost loans from prime or alternative lenders before you go private (FSRA). Need cash from your home but want to keep your first mortgage? Compare a second mortgage. Buying before you sell? See bridge financing. Paying down card debt? The debt consolidation calculator compares it with your numbers.
Steady income and plenty of equity? A bank may lend against it. Compare a home equity line of credit or a refinance first.
Retired, house paid off, no plan to sell? A private mortgage usually has to be paid off within one or two years. A reverse mortgage works differently: see the reverse mortgage guide and the reverse mortgage calculator.
Your lender won't renew? Start with mortgage renewal in Burlington.
Private mortgage calculator: your total cost and APR
Put in the numbers from a private mortgage offer anywhere in Ontario, or start from the example below. You get the total in dollars, the yearly cost the way Ontario's disclosure rules work it out, and what it costs if your exit slips.
Representative example, not an offer
Filled in with the representative example: a $150,000 private second mortgage, interest-only, with a $3,000 lender fee and a $7,500 brokerage fee. Change any number to match your offer.
- Rate
- 10.99%
- Term
- 12 months
- APR
- 17.99%
Total cost over the term $26,985 APR 17.99%
- Interest over the term: $16,485
- Fees: $10,500
- If your exit slips a full term: about $26,985 more
Monthly interest payment: $1,373.75. You still repay the $150,000 at the end. The slip figure assumes the lender renews at the same rate and charges the lender and brokerage fees ($10,500) again. On an open mortgage a shorter slip costs less interest; a new lender means new legal and appraisal costs too.
Your planned exit, at month 12, is inside the 12-month term.
This is a very high yearly cost. Ask for the full cost in writing and why a lower-cost lender won't work.
About the example: the rate and lender fee are the published second-mortgage terms of Atrium MIC, a mortgage investment corporation (CMHC groups these with private lenders): 10.99% with a 2.00% fee on a 1-year term for loans of $150,000 to $2,000,000; 10.99% is its tier for 71% to 75% loan-to-value (all the mortgages on your home as a share of its value), read November 4, 2026. Brokerage fee: 5%, as on one real file through my brokerage; yours is disclosed in writing before you sign.
Estimate, not an offer or a suitability assessment. It runs in your browser; nothing you type is sent. The APR follows O. Reg. 191/08 s. 3 and counts the lender fee, the brokerage fee and the lender's legal and appraisal costs. Your disclosure statement may treat a fee differently, and its figure is the one that counts.
Get it in writing before you sign
- The cost-of-borrowing disclosure, at least 2 business days before you sign, unless you waive that in writing (O. Reg. 191/08 s. 7).
- Who the brokerage acts for, you, the lender or both, and the fees it receives or pays (O. Reg. 188/08 ss. 18-22).
- On mortgages of $400,000 or less, the brokerage can't take a deposit or advance payment for work it hasn't done yet (O. Reg. 188/08 s. 37).
- Your rights if a payment is missed: under the mortgage's own power of sale, no notice until the default has lasted 15 days and no sale until at least 35 days after notice, and you can cure the default before a sale (Mortgages Act ss. 22, 32).
How you get out of a private mortgage
You get out by paying it off by the end of the term, usually with a mortgage from a bank or B lender once your file fits, or by selling. FSRA says you need a realistic exit strategy before you sign, and a back-up plan (FSRA).
- Before you sign: write down what has to change for a bank or B lender to say yes, and by when.
- During the term: fix what the bank said no to, such as late tax filings or missed payments.
- Before the term ends: apply to a bank or B lender, and ask the private lender for a payout statement.
- If you're not ready: get the lender's renewal terms in writing and price them against another private lender in the estimator above.
- At the end of the term: the new mortgage, or the sale, pays the private one off.
In CMHC's study of Ontario borrowers with private lenders and mortgage investment corporations, 72% had an effective exit in 2020: 64% moved to a conventional lender, such as a bank, and 8.5% sold without defaulting (CMHC, June 2022).
Who does what
Jenny offers private mortgages through her brokerage, Tango Financial. She reviews your file, explains the costs and plans your exit back to a bank lender; the private placement itself is handled by a Level 2 agent or the broker.
The full 5-step process and exit plan
Turned down, or told "private"? I'll start with whether a bank or a B lender can say yes.
Private mortgages in Burlington
A private lender often looks first at your home's value, so your equity, the value less what you owe, is the first number to know. For scale: in the second quarter of 2026, median resale prices across the 18 Burlington communities TRREB reports ran from $687,500 in Uptown to $1,937,500 in Rural Burlington (TRREB, Q2 2026). What you owe is on your latest mortgage statement.
Burlington office
- Address
- 5063 N Service Rd, Burlington, ON L7L 5H6
- Hours
- Monday to Friday, 9 am to 5 pm
- Phone
- (647) 642-7249
Renewing and your lender said no? See mortgage renewal in Burlington. Self-employed? Self-employed mortgages in Burlington starts with what a bank can count.
How much a private lender will lend on your Burlington home
It depends on your equity: a private lender caps all the mortgages on your home together at a share of its value, the loan-to-value. Atrium MIC, for example, publishes second mortgages up to 75% loan-to-value, with rates that rise with the loan-to-value, to 10.99% at 71% to 75% on a 1-year term (read November 4, 2026); the representative example above shows 10.99% as an APR of 17.99% with fees.
For illustration: on a $687,500 home, Uptown's median resale price in the second quarter of 2026 (TRREB), 75% is $515,625. With a $350,000 first mortgage, that leaves room for a second of up to about $165,625; the example's $150,000 would put you at about 73%.
Private second mortgage in Burlington
A private second mortgage sits behind your first: you keep the first mortgage, its rate and its term, and borrow against the equity on top. It tends to beat replacing the first when the first has a low rate or a large penalty to break, and you need a smaller amount for a short time. Replacing the first makes more sense when it's up for renewal anyway, or its lender won't renew. A second lender is paid after the first, so it takes more risk and charges more: Atrium MIC, for example, publishes higher rates on its second mortgages than on its firsts. The estimator above works either way, and its example is a second. For how a second mortgage works step by step, see the second mortgage guide.
Working with me
I start with why the bank said no and whether another bank or a B lender could say yes. If private is the route, I offer it through my brokerage, Tango Financial. The first step is a free 15-minute call. Please don't send your SIN or full financial documents by email.
"She was persistent in getting all documents in order before the bank needed it. She prepared us in a very organized way of what to expect at every phase."
Menucha Ossowiecki, Google review60+ Google reviews, rated 5.0.
Private mortgage FAQ
How much does a private mortgage cost in Burlington?
Representative example: a 12-month, $150,000 private second mortgage at 10.99%, interest-only, costs $16,485 of interest plus $10,500 in fees (a $3,000 lender fee and a 5% brokerage fee): $26,985 in all, an Ontario disclosure APR of 17.99%. The rate and lender fee are Atrium MIC's published second-mortgage terms, read November 4, 2026; the 5% brokerage fee is from one real file through Jenny's brokerage. Your price depends on the lender's rate and fees, the term and the loan size; the estimator on this page works it out from your own offer.
What is a private mortgage APR in Ontario?
It's the full cost of borrowing as a yearly rate: under O. Reg. 191/08 s. 3, the interest plus the fees the rules count, divided by the term in years and the average amount owed. Fees weigh more on a short term: in the representative example, 10.99% interest is an APR of 17.99% over 12 months, and the same loan and fees over 6 months would be 24.99%. Your disclosure statement's figure is the one that counts.
Private mortgage or B lender: what's the difference?
A B lender is a lender outside the big banks, such as a trust company or credit union (CMHC counts both as conventional lenders, not private ones), that takes some files a bank won't, like income the bank can't count or a recent credit problem, usually at a higher rate than a bank. A private lender is an individual or a mortgage investment corporation lending mainly on your home's value, usually for one or two years, at a higher cost again. FSRA says your agent should be able to explain why you don't qualify for typically lower-cost loans from prime or alternative lenders before you go private.
Can I get a private mortgage with bad credit or after a consumer proposal?
It can be possible, if you have enough equity: FSRA notes that private lenders often lend based on your home's value instead of your income. Lenders still set limits; Atrium MIC, for example, publishes a minimum credit score of 600. The lender decides, and the brokerage has to take reasonable steps to make sure the mortgage suits you, including how you'll get out of it. Ask first whether a bank or a B lender could say yes, because they usually cost less.
My lender won't renew: what now?
Start as soon as you know. Ask the lender in writing for its reasons and the payout figure. Then compare the ways out: a bank or B lender, if your file now fits; a private lender, which means new fees, so price it first; or selling. If a payment is missed, Ontario law gives you time: under a mortgage's own power of sale, notice can't be given until the default has lasted 15 days, and the sale can't happen until at least 35 days after notice. Before a sale, paying what's in default plus the lender's costs relieves you of the default. That helps with a missed payment during the term. Once the term ends without a renewal, the whole balance is due, so the payout has to come from a new lender or a sale.
Is there a fee before my mortgage funds?
On mortgages of $400,000 or less, the brokerage can't ask for or take a deposit or advance payment for work it hasn't done yet (O. Reg. 188/08 s. 37). That rule covers the brokerage, not every cost: an appraisal or a lender's fee can still be due before funding, so ask for every fee, and when it's due, in writing. Whatever the size, the brokerage must give you a cost-of-borrowing disclosure at least 2 business days before you sign, unless you waive that in writing, and must disclose in writing the fees it receives.
What are the warning signs of a bad private mortgage deal?
Stop and ask questions if you see any of these: being asked to sign before you've had the cost-of-borrowing disclosure for 2 business days, or to waive that wait (O. Reg. 191/08 s. 7); a brokerage asking for a deposit or advance payment on a mortgage of $400,000 or less (O. Reg. 188/08 s. 37); fees the brokerage receives that aren't disclosed in writing (O. Reg. 188/08 ss. 18-22); a rate advertised without its APR and term (O. Reg. 191/08 s. 18); an agent or brokerage you can't find on FSRA's public register; or no one explaining why a bank or B lender won't work, or how you'll get out (FSRA).
Can a private lender charge a higher rate if I'm late?
Not on the overdue amount. Under the Interest Act (s. 8), a mortgage on real property can't set a fine, penalty or rate on arrears that raises the charge on them above the interest rate on the principal that isn't in arrears. Interest on arrears at that same rate is allowed. If a payment is missed, Ontario's power-of-sale notice periods still apply (Mortgages Act).
Is there a legal maximum interest rate?
Yes. Under the Criminal Code (s. 347), agreeing to receive interest at an annual percentage rate above 35% on the credit advanced, calculated using generally accepted actuarial practices, is a crime. The interest it counts includes fees, fines, penalties and commissions paid for the credit. The 35% limit has applied since January 1, 2025.
How do I check that a mortgage agent or lender is licensed?
Search FSRA's public register by licence number, last name or city. It lists mortgage brokerages, brokers, agents and administrators; lenders aren't one of its categories, so check the brokerage and agent bringing you the loan. FSRA's advice before a private mortgage is to make sure your broker or agent is licensed through FSRA. Jenny's own licence entry is on the same register.
Can Jenny help if the bank turned me down?
Yes. She starts with why the bank said no and whether another bank or a B lender could say yes. If private is the route, Jenny offers private mortgages through her brokerage, Tango Financial. She reviews your file, explains the costs and plans your exit back to a bank lender; the private placement itself is handled by a Level 2 agent or the broker. The first step is a free 15-minute call.
Sources and method
The estimator treats the loan as interest-only: each month's interest is the yearly rate divided by 12 on the full amount, and the amount is repaid at the end of the term. The APR uses the formula in O. Reg. 191/08 s. 3: 100 times the cost of borrowing over the term, divided by the term in years times the average principal outstanding. It counts the lender fee, the brokerage fee and the lender's legal and appraisal costs; O. Reg. 191/08 s. 5 lists what the cost of borrowing includes and excludes. Terms under 6 months are not calculated. The slipped-exit figure assumes one more term at the same rate, with the lender and brokerage fees charged again, and that each renewal runs a full term. The example uses one lender's published rate and lender fee; it is not a market average. Its 5% brokerage fee is the fee on one real private file through Jenny's brokerage. Statutes were read on November 3 and 4, 2026.
A Mortgage Agent Level 1 deals only with banks, other financial institutions and lenders approved under the National Housing Act (O. Reg. 409/07 s. 5.0.1), so the private lender side sits with a Level 2 agent or the broker at the brokerage.
- Ontario, O. Reg. 191/08, Cost of Borrowing and Disclosure to Borrowers (s. 3 APR formula; s. 5 cost of borrowing; s. 7 disclosure 2 business days before signing; s. 18 advertising with APR and term).
- Ontario, O. Reg. 188/08, Mortgage Brokerages: Standards of Practice (ss. 18-22 who the brokerage acts for and its fees; s. 24 suitability; s. 37 no advance fee on mortgages of $400,000 or less).
- Ontario, O. Reg. 409/07, Mortgage Brokers and Agents: Licensing (s. 5.0.1 Mortgage Agent Level 1 scope; s. 5.0.2 Level 2).
- Ontario, Mortgages Act (s. 22 paying the arrears to cure a default; s. 32 power of sale: 15 days' default, 35 days' notice).
- Canada, Interest Act (s. 8 no fine, penalty or higher rate on mortgage arrears). Read November 4, 2026.
- Canada, Criminal Code, s. 347 (criminal rate: an annual percentage rate above 35% on the credit advanced, from January 1, 2025; before that, an effective annual rate above 60%). Read November 4, 2026.
- Financial Services Regulatory Authority of Ontario, Private mortgages (short-term, usually one or two years; a realistic exit strategy and a back-up plan; why lower-cost lenders don't fit; check that your broker or agent is licensed).
- Financial Services Regulatory Authority of Ontario, Mortgage Brokerages, Administrators, Mortgage Agents, and Mortgage Brokers Licensed in Ontario (public register; search by licence number, last name or city). Read November 4, 2026.
- Canada Mortgage and Housing Corporation, Effective Exit Strategies, Alternative Lenders Series (Ontario, 2020: 72% effective exit, 64% to a conventional lender, 8.5% sold without default; alternative lenders are mortgage investment corporations, private and individual lenders). Published June 28, 2022.
- Atrium Mortgage Investment Corporation, Residential products (second mortgages in five loan-to-value tiers up to 75%, rates rising with the tier to 10.99%, 2.00% fee, 1-year term, fully open, credit score 600 or more, loans of $150,000 to $2,000,000; first mortgages at lower rates). Read November 4, 2026; the page is undated.
- Toronto Regional Real Estate Board, Community Housing Market Report, Halton - Burlington, Q2 2026 (median resale prices by community). Retrieved October 11, 2026.
This page is general information, not financial or legal advice, and not a commitment to lend. Lenders set their own rates, fees and rules, and approval is the lender's decision. Your disclosure statement and commitment letter have the real numbers.
Want to know if private is really your route?
Book a free 15-minute call, or phone 647-642-7249 on a weekday between 9 am and 5 pm. Have your decline letter or renewal offer handy for the call.
Mortgage Agent Level 1 · MBA in Finance · Lean Six Sigma Black Belt
Jenny Tate is a Burlington-based Mortgage Agent Level 1 at Tango Financial Mortgage (ON) Corporation. She offers private mortgages through her brokerage for borrowers a bank has turned down, with a plan back to a bank lender, and serves clients across Ontario online.