Before you sign, know who the lender is, what the loan costs in total (the APR, with every fee), how much actually reaches your account, what happens at the end of the term, and how you will pay it off. Check that your broker is licensed with BCFSA, RECA or FSRA. In Ontario and Alberta you must get the written disclosure at least two business days before you commit, and in BC your broker must give you written disclosure of its role, risks and pay. Walk away from anyone who asks for a fee before funding or promises guaranteed approval.

What are the 12 questions to ask?

Tick each one when you have the answer in writing. Your progress is shown at the end.

What are the red flags?

Red flag

A fee before funding

The Canadian Anti-Fraud Centre lists up-front fees as a scam marker. A legitimate appraisal is paid to the appraiser; brokerage fees come at funding.

Red flag

"Guaranteed approval"

No lender can promise approval before seeing the property and the appraisal. Neither can a broker.

Red flag

No lender named

You have a right to know who you owe. A commitment without a lender's legal name is not a commitment.

Red flag

Pressure to sign today

The disclosure waiting period exists so you can read and get advice. Rushing you past it is a warning sign.

Red flag

Blank or unclear forms

Never sign a blank form or one with figures you don't understand.

Red flag

"Just bump up your income"

Overstating income on an application is fraud, and you are the one who signs it.

Red flag

No licence you can find

If the person arranging your mortgage isn't on the regulator's register, don't deal with them.

Client signing documents on a clipboard while a professional points to the signature line — Read everything before you sign. A good broker welcomes the questions; the wrong one avoids them.

What disclosure must you get in each province?

	What you get	When	Check the licence
BC	Written disclosure of who the broker acts for, the material risks, what the broker is paid and any conflict, under the Mortgage Services Act (in force 13 October 2026), plus the cost-of-credit disclosure with the APR	Before you sign; ask for at least two business days	BCFSA
Alberta	A disclosure statement with the cost of borrowing; the brokerage can't collect its fee until you have accepted the funding confirmation and had the statement for at least two business days	At least two business days before any fee	RECA
Ontario	Written disclosure of the lender, fees, term, conflicts and the cost of borrowing as an APR. Only a Level 2 agent or a broker may arrange a private mortgage	At least two business days before you commit	FSRA

Our own fee and how we are paid are on fees and licences, with step-by-step instructions to look up any broker.

When should you walk away?

When the APR, after all fees, is more than the problem it solves. Sometimes selling on your own terms leaves you with more.
When there is no realistic way to pay it off at the end of the term.
When the answers to these questions are vague, verbal only, or change between calls.

We give you the answers to all 12 in writing before you commit. If a private mortgage is the wrong tool for you, we will say so. How we plan the exit.

Private mortgage checklist questions

Can I back out after signing a commitment letter?

Sometimes, but it may cost you. Some commitment letters carry a fee if you walk away. Read it with your lawyer before you sign, and ask about any cancellation cost up front.

Do I need my own lawyer for a private mortgage?

Yes. The lender has its own lawyer. Yours explains the mortgage terms, the default charges and the renewal clause, and makes sure the money goes where it should.

How do I check if a private lender is legitimate?

Get its legal name, search it with the regulator and on CanLII for court decisions, and confirm your broker's licence. Our list of verified private lenders.

Is it normal to pay an appraisal fee up front?

Yes, if it is paid to an independent appraiser. That is different from a fee paid to a broker or lender before funding, which is a red flag.

Sources. FSRA, what you need to know about private mortgages · FSRA, mortgage brokerage disclosure requirements (O. Reg. 188/08 s. 35) · RECA Rules, s. 71 · BCFSA, Mortgage Services Act (in force 13 October 2026) · Financial Consumer Agency of Canada · Canadian Anti-Fraud Centre. Checked 12 November 2026.

Real people, not a call centre

Talk it through with a licensed broker before you decide

Tell us what is going on in a few lines. We call you back the same day with what lenders will say, what it costs in dollars, and how you get back to a bank. If private is the wrong tool, we say so.