Can I use a private mortgage for a purchase, not just refinance?
Updated: February 28, 2026CanadaFAQPrivate lending
Quick Summary
Yes, private mortgages can fund purchases, especially when the closing timeline is tight or bank financing is not available in time.
Private purchase mortgages are common for bridge situations, complex income files, or properties that need repairs before a bank will lend.
What to confirm early
- Closing timeline: Appraisal, lender conditions, and lawyer readiness are the usual bottlenecks.
- Cash requirement: lender and broker fees reduce your net proceeds.
- Conditions: insurance, appraisal, repairs, occupancy, and documentation requirements.
How to avoid getting trapped
Run the deal with a conservative plan: if your bank refinance takes longer than expected, can you extend or renew without being hit by repeated fees?
A good broker will map the exit plan before closing, not after.