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Are private lenders regulated in Canada?

Updated: February 28, 2026CanadaFAQPrivate lending

Quick Summary

Yes, but regulation and compliance depend on your province and the lender structure (individual, corporation, or MIC) and whether you work with a licensed mortgage broker.

Private lending is legal across Canada, but it is not one single rulebook.

What is typically regulated

  • Mortgage brokers and agents: licensing and disclosure requirements are provincial.
  • Legal documentation: commitment letters, mortgage registration, and enforcement rights follow provincial law.
  • Certain lender structures: MICs and other entities may have additional corporate or compliance obligations.

How to protect yourself before signing

  1. Confirm your broker or agent is licensed in your province.
  2. Ask for a written net-advance breakdown (how much you receive after fees).
  3. Have an independent real estate lawyer review the Commitment Letter, especially default, enforcement, and payout terms.

Red flags

  • Fees that are unclear or change right before closing.
  • Vague minimum-interest or prepayment language.
  • Pressure to skip legal review.

This is general education, your broker and lawyer can confirm what applies to your specific province and file.