Private Mortgage Lenders in Alberta: Your Alternative Option
When banks and credit unions say no, private mortgage lenders are often the bridge to a solution. In Alberta, a robust private lending ecosystem provides mortgages and home equity loans to borrowers who don’t fit traditional lending criteria — but who own real property with real equity.
What Is a Private Mortgage Lender?
A private mortgage lender can be an individual investor, a syndicate of investors, or a Mortgage Investment Corporation (MIC). Unlike banks, they are not regulated by the Office of the Superintendent of Financial Institutions (OSFI) — which means they can set their own underwriting criteria. Most private lenders in Alberta lend primarily on the security of the property, not the borrower’s credit profile.
Who Uses Private Mortgage Lenders in Alberta?
- Homeowners in active consumer proposals or recent bankruptcies
- Self-employed borrowers with low reported income
- Oil and gas or seasonal workers with irregular income
- Borrowers who need to close quickly (power of sale, tax sale, bridge financing)
- Homeowners with significant equity but damaged credit from past financial hardship
Private Mortgage Rates in Alberta
Private mortgage lenders charge higher rates than A or B-lenders because they carry more risk. In Alberta, typical private second mortgage rates range from 9.99% to 14.99% annually. Lender fees of 1–3% are common. Total transaction costs (including appraisal, legal, and broker fees) typically run 2–5% of the loan amount.
How to Find a Private Mortgage Lender in Alberta
The best way to access private lenders in Alberta is through a licensed mortgage broker. Brokers have established relationships with multiple MICs and private investors, can match your file to the right lender quickly, and negotiate on your behalf for the best available rate and terms.
Working directly with a private lender (without a broker) is possible but risky — you may accept unfavourable terms without knowing better options exist.
Private Mortgage as a Bridge, Not a Destination
Private mortgages are best understood as short-term solutions (1–2 years) that give you time to resolve the underlying issue — rebuild credit, stabilize income, sell a property — and then refinance into a lower-cost product. Going in with a clear exit strategy is essential.
Ready to Get Started?
If you’ve been turned down by the banks or are struggling with your current mortgage situation, CreditReboot Mortgages is here to help. We work with homeowners across Alberta with bad credit, consumer proposals, bankruptcies, self-employment, and more. There’s no minimum credit score — just real home equity solutions.
Call us today at 1-866-329-8801 or visit www.creditreboot.ca to get a free, no-obligation consultation.
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Don’t let a bank’s decision be your final answer.
