Private & Alternative Mortgages in Kitchener-Waterloo, Cambridge & Guelph

    When a bank says no, it does not always mean you cannot get a mortgage. Alternative (B) lenders and private lenders fill the gap for credit issues, unusual income or time-sensitive deals. We use them as a bridge, with a clear exit plan back to a regular lender.

    Who this is for

    B-lenders vs private lenders

    B-lenders are trust companies and credit unions with more flexible rules, typically one- to three-year terms. Private lenders are individuals or mortgage investment corporations offering short terms, interest-only payments and fast decisions.

    Costs

    Rates are higher than bank rates, and lender and broker fees apply. All fees are disclosed in writing in the FSRA-required disclosure before you sign.

    Exit strategy

    Every private mortgage should have an exit plan: rebuild credit, file taxes, sell, or refinance. We set milestones so you know what needs to happen to move to a better rate.

    Second mortgages

    A private second mortgage can unlock equity without breaking a low-rate first mortgage, useful for short-term needs.

    Worked example (example only, OAC)

    • Home value: $700,000; first mortgage $350,000 at a low rate
    • Private second mortgage: $60,000 at a sample 10.99%, interest-only
    • Monthly interest: about $550; lender and broker fees disclosed upfront
    • Plan: pay off with refinance at renewal in 12 months
    • Example only, OAC.

    Frequently asked questions

    How fast can a private mortgage close?

    Sometimes within a week, depending on appraisal and legal timing.

    What is a broker fee?

    A fee paid to the brokerage for arranging a private or alternative mortgage. It is disclosed in writing upfront.

    Will a private mortgage hurt my credit?

    Not by itself. Paying it on time can help you rebuild credit.

    Is my home at risk?

    As with any mortgage, missed payments can lead to enforcement. Borrow only what you can afford.

    Are you regulated?

    Yes. Jay Shah is licensed with FSRA (Lic. #M22002236) through Affinity Mortgage Solutions Inc., Brokerage #13093.

    Serving these cities

    Mortgage broker in KitchenerMortgage broker in WaterlooMortgage broker in CambridgeMortgage broker in Guelph

    Related guides

    More guides coming soon

    Learn more from CMHC and the Financial Consumer Agency of Canada.

    Book a free 30-min call with Jay

    Straight answers, no cost and no obligation for most standard mortgages.

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    Mortgage Kraft · Affinity Mortgage Solutions Inc., Brokerage #13093 · Jay Shah, Licensed Mortgage Broker, Lic. #M22002236 · Rates and examples OAC, subject to change. Not financial advice.