Private mortgage and private lending rates in Canada (November 2026): the true cost, with APR
Rates by loan-to-value for BC, Alberta and Ontario, with every fee and the APR. Refreshed monthly.
Written and reviewed by Asim Ali, Mortgage BrokerUpdated 5 November 2026
Licensed: BCFSA (BC) · RECA (Alberta) · FSRA (Ontario) · check our licences
In November 2026, private first mortgages in BC, Alberta and Ontario cost 7.49% to 10.99% interest-only. Add a 1-2% lender fee, a 1-2% broker fee, $1,500-3,000 in legal costs and a $400-800 appraisal. Private second mortgages run 9.49% to 14.99% with 2-3% lender fees. On a 12-month term the APR of a typical first mortgage is 10.5% to 13%. A second is 14% to 21%. The rate is only part of the cost. The fees and the term length are the rest.
Private first mortgage rates by loan-to-value, November 2026
Private lenders price on loan-to-value (LTV) first. Then province, property type and location. These are the ranges for files we place. A rural acreage, a strata with a special levy, or a borrower in active foreclosure sits at the top of the range or above it.
| Loan-to-value | BC | Alberta | Ontario | Lender fee |
|---|---|---|---|---|
| Up to 55% | 7.49-8.49% | 6.99-7.99% | 7.49-8.49% | 1% |
| 55-65% | 8.49-9.49% | 7.49-8.99% | 8.49-9.49% | 1-1.5% |
| 65-70% | 9.49-10.49% | 8.49-9.99% | 9.49-10.49% | 1.5-2% |
| 70-75% | 10.49-10.99% | 9.49-10.99% | 10.49-11.49% | 2% |
| Above 75% | Rare on a first. 80% combined LTV is the practical ceiling for private lending. | 2-3% | ||
Interest-only, 12-month terms. Alberta is cheapest: lower land values and a deep Calgary MIC market. Mortgage Directory's October 2026 median starting rate: Alberta 6.99%, Ontario 7.69%. Broker fee of 1-2% applies in all provinces and is disclosed in writing first.
Private second mortgage rates, November 2026
| Combined LTV (first + second) | Rate range | Lender fee | Minimum fees |
|---|---|---|---|
| Up to 65% | 9.49-10.99% | 2% | $1,500-2,500 |
| 65-75% | 10.99-12.99% | 2-3% | $2,000-3,000 |
| 75-80% | 12.99-14.99% | 3% | $3,000-4,000 |
| Above 80% | Very few lenders. Expect a no or a much smaller loan. | ||
Alberta seconds price about 1% lower at each band. Minimum dollar fees matter on small seconds. On a $50,000 second, $3,500 of fees is 7% of the loan. You pay interest on the full $50,000 and receive $46,500.
What the APR adds that the rate hides
The law in all three provinces says your cost-of-borrowing disclosure must show an APR. The APR folds the lender fee, broker fee and most legal costs into the interest over the actual term. FSRA's 2024 review of Ontario private files found only 35.5% stated the APR correctly. Here are four honest examples, each for a 12-month term.
| Example | Rate | Fees and costs | Interest, 12 mo | Total cost | APR |
|---|---|---|---|---|---|
| $500,000 first, 65% LTV, BC | 8.49% | $12,600 | $42,450 | $55,050 | 11.01% |
| $400,000 first, 60% LTV, Alberta | 7.99% | $10,100 | $31,960 | $42,060 | 10.52% |
| $120,000 second, 72% CLTV, Ontario | 11.99% | $7,000 | $14,388 | $21,388 | 17.82% |
| $50,000 second, 70% CLTV, any province | 11.99% | $4,500 | $5,995 | $10,495 | 20.99% |
Fees and costs = lender fee + broker fee + legal + appraisal. APR = total cost ÷ amount borrowed ÷ term in years. The criminal rate of interest is 35% APR (since 1 January 2025). A short term with heavy fees can get close to it. That is one reason six-month private terms deserve a second look.
True-cost calculator
Change any number. You get combined loan-to-value, the monthly interest-only payment, total fees, the net advance that reaches your lawyer, the total cost for the term, and the APR.
Estimate only. The APR on your disclosure statement follows the provincial formula and may differ a little. Renewal fees, discharge fees ($300-800) and prepaid interest are not included.
The fees that are not in the rate
- Lender fee (placement, commitment or origination fee): 1-3% on firsts, 2-5% on seconds. Taken off at funding.
- Broker fee: 1-2%, ours, disclosed before commitment. Ontario: the FSRA borrower disclosure, at least two business days before you sign. BC: the remuneration disclosure, at least two business days before signing. Alberta: the cost-of-credit disclosure.
- Legal: the lender's lawyer ($1,000-1,800) and your own lawyer ($700-1,200). Both are required.
- Appraisal: $400-800. The only cost you pay before funding, and you pay the appraiser, not us.
- Renewal or extension fee: 0.5-2% if you renew at month 12. Ask whether renewal is offered at all. It is a privilege, not a right.
- Discharge fee: $300-800 when you pay out. Some closed terms add three months' interest. Open-after-three-months terms avoid this.
- Prepaid interest: some lenders hold 3-12 months of interest back from the advance. No monthly payments, but it is still your money.
The 6% loan that becomes 14%. A 5.99% private first with a 2% fee looks cheap. Add an auto-renewal clause that lifts the rate by 3.5% and charges a 4% renewal fee at month 12, and the real cost is about 14% (Mortgage Professionals Canada, 24 September 2026). We read the renewal clause before you sign and put its cost on your fee sheet.
Private vs B-lender vs bank, November 2026
| Bank (A) | B-lender | Private | |
|---|---|---|---|
| Typical 1-year rate | 4.5-5.5% | 6.0-8.5% | 7.5-11% (seconds 9.5-15%) |
| Lender fee | None | 1% | 1-3% |
| Broker fee to you | None | Usually none | 1-2% |
| Qualifies on | Income, stress test, credit | Bank statements, bruised credit OK | Equity and exit plan |
| Max loan-to-value | 95% insured / 80% uninsured | 80% | 75% first / 80% combined |
| Time to fund | 2-6 weeks | 2-3 weeks | 5-12 days |
| Term | 1-5 years | 1-3 years | 6-12 months |
| Who it is for | Everyone who qualifies | Self-employed, recent proposal, credit under 650 | Deadlines, liens, active proposals, foreclosure |
We check the B-lender route on every file before placing it privately. If a B-lender will take you inside your deadline, it is almost always cheaper.
Questions about private mortgage costs
Why do I pay interest on the full amount if the fees are deducted?
Because the mortgage registered on title is for the full amount. On a $50,000 second with $3,500 in fees you receive $46,500 but owe, and pay interest on, $50,000. The APR shows this. The rate does not.
Are private mortgage fees negotiable?
Lender fees move a little on larger, lower-LTV files and not at all on small seconds. Our broker fee is set per file and told to you before commitment. Any deal with more than 5% in combined lender and broker fees deserves a second quote.
Who pays the appraisal, and what if the value comes in low?
You pay the appraiser, $400-800. If the value comes in low, the lender shrinks the loan to hold the LTV. On tight files we line up a second lender so a low appraisal does not sink the deadline.
Can I pay a private mortgage off early?
Open terms let you pay out any time, sometimes after a three-month minimum. Closed terms charge the remaining interest or three months' interest. Because the point is to leave within 12 months, we favour open-after-three-months terms.
Is the interest tax-deductible?
Only if the money is used to earn income (a rental, a business). Paying CRA arrears or consolidating personal debt is not deductible. Ask your accountant.
Sources. Mortgage Directory private lending rates by province, October 2026 · FSRA Mortgage Brokering Sector Supervision Plan 2025-26 · Mortgage Professionals Canada, "The fine print that can turn a 6% private loan into 14%", 24 September 2026 · Criminal Code s.347 · BC BPCPA and B.C. Reg. 273/2004 · Ontario O. Reg. 191/08 · Alberta Cost of Credit Disclosure Regulation.
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.
- Your full cost, in dollars, before you commit
- The lender named on your commitment letter
- A written plan to exit within 12-24 months
Asim Ali, Mortgage BrokerSurrey office · BC, Alberta and Ontario
Tell us three things. A licensed broker calls you today.
No credit check. No ID. No date of birth. We ask what a lender decides on: the property, the equity and the deadline.
- 1Same-day call from Asim Ali or a licensed colleague
- 2A range for rate, fees and APR on the call
- 3Written commitment in 1-2 business days if you go ahead
- 4Nothing to pay until the mortgage funds
Asim Ali, Mortgage Broker
Licensed in BC, Alberta and Ontario · (604) 591-3590