Neha Joneja, Mortgage Agent Level 2 in Brampton, arranges private mortgages when banks decline a file: short-term bridge financing, credit setbacks and power of sale situations. Private lenders focus mainly on your home equity. Neha treats a private mortgage as a short bridge and plans your exit back to a bank or B lender from day one.
- 4.8 on Google (18 reviews)
- FSRA-licensed brokerage #13812
- English · हिन्दी · ਪੰਜਾਬੀ
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When does a private mortgage make sense?
A private mortgage is a loan from an individual investor or a pooled lending company (such as a mortgage investment corporation) rather than a bank. Private lenders look mostly at your property’s value and your equity, which is the value minus what you owe. That makes them useful when the problem is timing, credit or paperwork, not the home itself.
Situations Neha sees in Brampton include:
- Bridge timing: you’ve bought in Castlemore but your Bramalea home hasn’t sold yet, and the bank won’t bridge without a firm sale.
- Credit setbacks: missed payments, collections or a recent consumer proposal that rule out a bank for now.
- Power of sale: your lender has started enforcement and you need to pay out arrears quickly.
- Tax arrears or new income: CRA balances to clear, or self-employment income that isn’t documented yet.
- Speed: a deal that has to close faster than a bank can underwrite.
It’s not the right tool if a bank or B lender would approve you, because those options cost less. A B lender is an alternative lender that bends some bank rules, at a moderate extra cost. A private mortgage also doesn’t fit if there’s no realistic way out at the end of the term.
How is a private mortgage usually structured?
Private terms differ from bank mortgages in almost every way. Here is what’s common, and what to ask.
| Feature | What’s common | What to ask |
|---|---|---|
| Term | Often 1 year, sometimes shorter | Is renewal possible, and at what cost? |
| Payments | Interest-only is common, so the balance doesn’t go down | Monthly, or prepaid from the advance? |
| Position | First mortgage, or a second behind your existing one | Will my first mortgage lender allow it? |
| Amount | Based on equity, with a cushion the lender keeps | How much will I actually receive? |
| Fees | Lender fee, brokerage fee, legal fees for both sides, appraisal | What is the total in dollars? |
| Early payout | Some are open, some have a minimum interest period | What does it cost to leave early? |
Interest rates on private mortgages are higher than bank rates and change with each lender, property and situation, so Neha gives you real quotes in writing rather than ballpark figures.
Approval subject to lender criteria (O.A.C.). Rates subject to change. Examples are for illustration only.
Why does a Level 2 licence matter?
In Ontario, not every licensed mortgage agent can arrange private mortgages. Neha’s Mortgage Agent Level 2 licence, through Mortgage Assurance Inc. (FSRA Brokerage Licence #13812), lets her work with banks, alternative lenders and private lenders. That matters because she can compare all three for the same file, and only recommend private when the other two can’t help.
Before you sign, you should receive written disclosure of the cost of borrowing and all fees. Review it with your own lawyer, separate from the lender’s. FSRA, Ontario’s regulator, explains your rights when you deal with a mortgage brokerage.
Facing power of sale in Brampton? Act early
Power of sale is the process an Ontario lender can use to sell your home after you default. Once you receive a notice, there’s a limited window, and legal costs are added to what you owe the longer it continues.
If you have enough equity, a private mortgage can sometimes pay out the arrears and the lender’s costs, stop the sale and give you time to sell on your own terms or rebuild your finances. Call as soon as you get the first letter, not the week before the deadline. Neha is reachable 24/7 at (647) 530-1682, and you should also speak with a real estate lawyer about the notice itself.
What is the exit strategy?
Every private mortgage needs a way out before it starts. Part of Neha’s job is checking that the exit works before you commit, and telling you plainly if it doesn’t. Common exits:
- Sell: the bridge ends when your home sale closes.
- Refinance to a B lender: after a stretch of on-time payments and cleaned-up credit, many borrowers qualify with an alternative lender.
- Back to a bank: once credit, income documents and taxes are in order, an A lender becomes possible again. The self-employed mortgage page explains how filing and NOAs fit in.
- Consolidate and step down: a private second mortgage clears high-interest debt, then a debt consolidation mortgage or refinance with a regular lender replaces it.
The ladder is the point: private, then B lender, then bank. Each step costs less than the one before.
How do I compare private mortgage offers?
Comparing interest rates alone can mislead you. Ask each lender for these numbers in writing:
- Net advance: the cash you actually receive after fees and holdbacks
- Total cost over the term: all interest plus every fee, in dollars
- Payment method: monthly interest, or interest prepaid and held back from your advance
- Early payout rules: open, or a minimum number of months’ interest
- Renewal fee: what it costs if you need a few more months
- Default terms: late fees and what triggers enforcement
For example, Offer A has a lower lender fee but is closed for the full year. Offer B has a higher fee but is open after three months. If you expect your house to sell in four months, Offer B may cost less overall even with the higher fee.
What are the risks?
A private mortgage is a bridge, not a destination. Costs are higher than at a bank, and fees reduce your equity. With interest-only payments, you owe the full balance at maturity, and if you can’t renew or refinance, you could face enforcement. A private loan won’t fix a monthly budget that doesn’t balance; it buys time to fix the underlying problem.
What you’ll need
- Photo ID for everyone on title
- Current mortgage statements and any arrears or power of sale notices
- Property tax bill and home insurance policy
- Income information, even if it isn’t bank-ready
- Your exit plan evidence: listing agreement, sale agreement, or tax filings in progress
- Contact details for your real estate lawyer
You’ll find related options on the private and commercial page. Neha explains private terms clearly in Punjabi, Hindi or English, and you can book a consultation at 7900 Hurontario St, Brampton, ON L6Y 0P6, or online.
Frequently asked questions
Can I get a private mortgage in Brampton with bad credit?
Often, yes, if you have enough equity in your home. Private lenders focus mainly on the property’s value, though they still want to understand your situation and how you’ll repay. Approval is subject to the lender’s criteria.
How fast can a private mortgage close?
Private lenders can usually move faster than banks, sometimes within days, once the appraisal, title search and lawyers are in place. Timing depends on how quickly documents come together.
Are private mortgages legal and regulated in Ontario?
Yes. Private mortgages arranged through a licensed brokerage fall under Ontario’s mortgage brokering rules, overseen by FSRA. You should receive written cost disclosure and use your own lawyer.
Can a private mortgage stop a power of sale?
Sometimes. If there’s enough equity, a private mortgage can pay the arrears and the lender’s costs before the sale is completed. The earlier you act, the more options you have.
Do I pay the fees upfront?
Lender and brokerage fees are often deducted from the mortgage funds at closing, while the appraisal may be paid upfront. Always ask for a written breakdown in dollars before you sign.
How do I get out of a private mortgage?
By selling, or by refinancing with a B lender or bank once your credit, income documents or taxes are in order. Neha builds that plan before the private mortgage is arranged.
Prefer to talk now?
Or start your application in Neha’s app (opens in a new tab).
- 4.8 on Google (18 reviews)
- FSRA-licensed brokerage #13812
- English · हिन्दी · ਪੰਜਾਬੀ
- Women-owned
Last reviewed by Neha Joneja, Mortgage Agent Level 2, November 2026. General information only, not financial advice for your situation.