How to Get a Private Mortgage in Calgary? Insider Tips For Lower Rates

Are you trying to buy or refinance a property in Calgary, Alberta—but the bank said no? You’re not alone. Many Calgarians find themselves stuck in a system where traditional lenders have a strict, black-and-white approach. Fortunately, there’s a solution: private mortgages.

In this comprehensive guide, we’ll walk you through everything you need to know about getting a private mortgage in Calgary, including:

• ✅ What a private mortgage is

• ✅ Pros and cons

• ✅ Current rates and fees

• ✅ Paperwork requirements

• ✅ Who qualifies

• ✅ How to apply (and how to avoid costly mistakes)

What Is a Private Mortgage?

A private mortgage is a loan provided by a private lender—either an individual or a Mortgage Investment Corporation (MIC)—when a traditional bank refuses to finance you. These lenders are often more flexible and care more about the property than your income or credit score.

Private mortgages are a lifeline for:

• Homebuyers with bad credit

• Investors maxed out with their banks

• Builders and flippers

• People facing foreclosure

• Anyone needing fast financing

But there’s a trade-off: higher rates and fees. That’s the price of flexibility.

Why Are People Turning to Private Mortgages in Calgary?

Traditional banks have tightened their lending rules. Whether it’s poor credit, self-employment, unconventional income, or high debt loads—banks are turning more people away. Calgary, with its volatile real estate and oil-driven economy, often sees borrowers fall outside the conventional lending box.

That’s where private lenders come in.

Pros of Private Mortgages

✅ Flexible Credit Requirements
Credit score of 400? No problem. Private lenders are more focused on your home equity than your history.

✅ Income Flexibility
Even if you’re unemployed, self-employed, or working under the table, private lending is possible.

✅ Faster Approvals
Need to close in 48 hours? Private lenders can move lightning fast—something banks simply can’t do.

✅ Creative Solutions
Some lenders will even let you pre-pay interest so you don’t make monthly payments for a year. That’s helpful if you’re repairing your credit or going through a temporary financial dip.

✅ Investment and Flip-Friendly
Private lenders fund house flips, construction draws, and even portfolios that banks won’t touch.

Cons of Private Mortgages

❌ Higher Interest Rates
Expect rates in the 5% to 12% range in 2025. That’s much higher than a conventional or even “B lender” rate.

❌ Lender and Broker Fees
Fees can range from 2% to 4% of the loan amount, and they’re paid upfront.

❌ Short-Term Loans
Most private mortgages are 1–2 years. These are bridge loans, not forever solutions.

❌ Not for Every Property
Private lenders don’t like mobile homes, tiny towns, or hard-to-sell properties. Urban homes in Calgary are easier to fund.

What Do You Need to Qualify?

Here’s a list of what most Calgary private lenders require:

1. Employment Letter & Pay Stub (if available)
   Optional: Some deals get funded with zero income.

2. Appraisal
   To verify the current market value of the property.

3. Credit Report
   Used more for due diligence than decision-making. Sub-500 scores can still qualify.

4. Bank Statements
   To show you have enough for the down payment.

5. Government-issued ID

6. Mortgage Application
   I will personally fill this out and package it professionally for private lenders.

Who Typically Gets a Private Mortgage?

• 🏚️ People With Bad Credit: Bankruptcy, missed payments, consumer proposals—private lenders will still consider you.

• 💼 Real Estate Investors: When traditional lenders cut you off after a few properties, private lenders pick up the slack.

• 🧱 Builders: Especially those needing construction draws.

• 🔨 House Flippers: Some private lenders specialize in short-term flip financing.

• 🆘 Homeowners in Foreclosure: Use a private mortgage to pay off the bank, save your house, and refinance later.

• 🕑 Anyone Needing Fast Money: Banks are slow. Private lenders move fast.

What Are the Rates and Fees in 2025?

Here’s what to expect for Calgary private mortgage pricing this year:

Sometimes, a slightly higher rate can come with lower fees—and that can save you more overall. I’ll do the math for you so you get the best total cost, not just the best rate.

Real Example: Creative Private Mortgage Solution

A recent client of mine was going through a financial crisis and couldn’t make monthly payments. I negotiated with the lender to build one full year of payments into the mortgage. No monthly payments for 12 months, giving her time to recover, save her house, and protect her credit.

This is what private lenders can do when you have a smart broker fighting for you.

Step-by-Step: How to Get a Private Mortgage in Calgary

1. Book a Consultation With Me
   We’ll run through your situation and fill out a mortgage application.

2. Pull Your Credit and Collect Docs
   I use the same report and paperwork across multiple lenders to minimize hassle.

3. Get an Appraisal
   This confirms property value and helps secure the best terms.

4. I Shop It to 50+ Private Lenders
   I negotiate on your behalf to grind down the rates and fees.

5. Pick the Best Offer
   You choose based on interest rate, fees, flexibility, and repayment terms.

6. Lawyer Finalizes the Deal
   Once you sign, the funds are transferred, and you’re done.

Should You Go Private?

Private mortgages aren’t for everyone—but they’re a powerful tool when used correctly. If you:

• Have a big down payment or home equity

• Need to act fast

• Have bad credit or complex finances

• Are trying to avoid foreclosure

…then private lending may be your best move.

Final Thoughts: Protect Yourself and Work With a Pro

Private lending is the wild west of mortgages. Some deals are predatory. Others are life-changing. The difference? Your broker.

I’ve helped hundreds of clients secure fair, low-fee private mortgages in Calgary—and I can do the same for you. If you’re unsure whether a private mortgage is right for you, reach out. I’ll review your situation, lay out all your options, and help you pick the best one.

📞 Call me today or fill out a mortgage application now.
You might be closer to a solution than you think.