When the bank says no, that's not the end of the conversation.

Alternative lenders and private lenders are not the same

Alternative lenders — trust companies and some credit unions — are regulated institutions that approve files outside the big banks' boxes. Their rates sit above prime lenders' but well below private money, and terms usually run one to three years. Private lenders, including mortgage investment corporations, lend primarily on the equity in the property, move quickly and price for that flexibility. We always look at alternative options first, because the cheapest yes is the best starting point.

What private lenders actually look at

Private lenders care most about three things: how much equity is in the property, how easily it could be sold, and how you plan to repay. Credit and income still matter, but far less than at a bank. Most will lend up to roughly 75% to 80% of value, sometimes more on a second mortgage at a higher cost. A well-presented file with a credible exit gets better terms than a rushed application, even in an urgent situation.

Building the exit from day one

A private mortgage should end with a refinance into a lower-cost product. That exit is built from on-time payments, cleared arrears, filed taxes, rebuilt credit and, sometimes, a modest reduction in the balance. We set out those steps in writing at the start, check in during the term and begin the refinance early enough to avoid an expensive renewal of the private loan. The plan is what turns a costly year into a bridge rather than a habit.