What fees should I expect on a private mortgage?
Updated: February 28, 2026CanadaFAQPrivate lending
Quick Summary
Private mortgages often include lender fees, broker fees, legal fees, and appraisal costs, so your net proceeds can be meaningfully lower than the loan amount.
Private lending cost is not just the Interest Rate.
Common fee categories
- Lender Fee and Underwriting or administration fees.
- Broker Fee (if using a broker).
- Legal fees and disbursements.
- Appraisal fee and, sometimes, inspection or report fees.
Terms that change total cost
Minimum-interest periods, renewal fees, and prepayment penalties can matter more than the headline rate if you plan to refinance or sell quickly.
Before you commit, ask for a net-advance and total-cost breakdown in writing, and have your lawyer review the Commitment Letter.