Private lending fills a vital niche in Canada’s mortgage and financing landscape. It offers speed, flexibility and asset-based underwriting to borrowers who cannot access institutional credit due to timing, documentation, income type, or property issues. While private mortgages are more expensive and risk-tolerant, their use is often facilitated by licensed mortgage brokers and governed by applicable provincial and federal laws.
Understanding the foundations of private lending allows mortgage professionals, investors, and advisors to assess when private financing is an appropriate tool, how it differs from traditional models, and what safeguards must be in place to protect both borrower and lender.
In the next modules, we will explore how private loans are structured, how risks are assessed and mitigated, and how various professionals contribute to responsible lending practices.