Private lending is money borrowed from an individual or company instead of a bank — usually because the timeline is too tight, the income is hard to verify on paper, or the credit history has a rough patch a bank won’t look past. It costs more than a bank mortgage. But it can be the difference between losing a property and keeping one.

I get this question constantly, so let me give you the straight answer.

Who Actually Uses Private Lending?

In my experience, it’s rarely about bad decisions. It’s almost always about timing or documentation:

Self-employed clients whose income doesn’t fit neatly into a bank’s underwriting box.

Homeowners facing foreclosure who need funds fast to bring a mortgage current

People rebuilding after a past bankruptcy or consumer proposal

Investors who need to close in days, not weeks

What It Costs?

Here’s a real example. A $100,000 private second mortgage at 12% interest, with typical lender and broker fees, nets approximately $87,900 to you at closing, with a monthly interest-only payment around $1,000.It isn’t cheap money — but for someone who needs that $87,900 in five days, the alternative is usually far more expensive.

Is It Right For You?

Private lending works best as a 12-month bridge — a tool to solve an immediate problem while you rebuild toward conventional financing. It’s not meant to be permanent, and a good broker will tell you that upfront.

If a bank has said no, that’s not the end of the road. It just means we look at a different door.

Curious whether private lending makes sense for your situation? Let’s talk — no pressure, just straight answers.

Read the full breakdown of how private lending works on MortgageClarity.ai →

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2025-3000179) Broker (2025-3000180), Ontario(M23006699).

p.s.s.s You can download my new mortgage app here

Patrick Sawler is a mortgage broker and owner of Craigburn Capital, licensed in Nova Scotia and Ontario, with private financing available in New Brunswick and PEI. He answers his phone.

Ready to have a real conversation? Call 902-612-2688 or start your application at

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