Can I get a private mortgage with bad credit?
Updated: February 28, 2026CanadaFAQPrivate lending
Quick Summary
Often yes if you have enough equity and a realistic exit plan, but pricing and conditions are usually stricter than a bank.
Many private lenders underwrite the property and the Exit Strategy first, and credit score second.
What lenders usually care about
- Equity and value: often supported by an Appraisal.
- The story behind the credit issues: one-time event vs ongoing pattern.
- A credible exit plan: refinance to an A or B lender, sell the property, or stabilize income.
What this means for you
- Expect higher total borrowing cost (rate plus lender and broker fees).
- Pay attention to minimum-interest periods, renewal fees, and prepayment terms if you plan to exit early.
- Build a realistic timeline with buffer for delays so you are not forced into an expensive renewal.
If the exit plan is vague, ask your broker for a scenario-based plan (best case, expected, worst case) before you commit.