Private Mortgages in Alberta: A Clear Plan When the Bank Says No
A bank decline doesn't have to end your plans. Rowan Smith works with more than 50 private lenders and mortgage investment corporations and has 20 years of experience structuring private mortgages, including debt restructuring for homeowners facing foreclosure. He is licensed in Alberta through RECA, and he places every private mortgage with a clear plan for how you will move back to lower-cost financing.
What Is a Private Mortgage?
A private mortgage is a loan from individual investors or a mortgage investment corporation (MIC) rather than a bank or credit union. Private lenders focus mainly on the equity in your property and the strength of your exit plan, and less on credit scores or traditional income documents.
Private mortgages are short-term tools. Terms usually run one to two years, and payments are often interest-only. They are designed to solve a problem, not to be your permanent mortgage.
Private vs. Alternative Lenders: Try the Cheaper Option First
Private lending isn't the only alternative to a bank. Alternative lenders, often called B lenders, include trust companies and credit unions that approve files the big banks won't, usually at lower cost than private money. Rowan works with 8 alternative lenders and checks whether one of them can approve your file before recommending a private mortgage. Private lending is used only when it is genuinely the best route.
When a Private Mortgage Makes Sense
- Your bank or credit union declined your application.
- You're recovering from a consumer proposal, bankruptcy or damaged credit.
- You're behind on mortgage payments or property taxes.
- Your income is real but hard to document, which is common for newer businesses and commission earners.
- You need to close quickly, or you need a bridge between buying one home and selling another.
- The property is unusual: an acreage, a rural home, or a home that needs work before a bank will lend on it.
What Private Mortgages Cost
Private money costs more than bank financing, and you should know the full cost before you commit. Expect a higher interest rate than a bank charges, a lender fee, and in many cases a broker fee, along with legal and appraisal costs. The exact figures depend on your equity, the property, the loan amount and your exit plan.
Every fee is disclosed in writing before you sign. Rowan compares the total cost of the private mortgage with the cost of doing nothing, such as mounting arrears, a forced sale or a lost purchase, so you can make the decision with real numbers.
How to Protect Yourself
- Check the licence. Dealing in mortgages in Alberta requires a RECA licence, and RECA has publicly penalized people for doing it without one. Search any broker on RECA's website before sharing documents.
- Get every fee in writing before you sign.
- Understand what happens at maturity, including renewal fees and what happens if your exit takes longer than planned.
- Have an independent lawyer review the commitment.
How It Works
- A confidential call to understand the situation, the property and your deadline.
- A review of the property's value and your exit plan.
- Offers from the best-fit private or alternative lenders, with all costs compared side by side.
- Funding through your Alberta lawyer, often within days when the timeline is urgent.
How to Choose an Edmonton Mortgage Broker
- Verify the licence. Anyone dealing in mortgages in Alberta must be licensed by the Real Estate Council of Alberta (RECA). You can check any broker using RECA's public licensee search.
- Ask how many lenders they use. Five lenders is a very different level of choice from 80.
- Ask about files like yours. If you're self-employed, building a home or rebuilding credit, ask how many similar deals they've closed.
- Get fees in writing. On private or alternative deals, every fee should be disclosed before you sign.
- Read reviews for patterns in communication, not just the star rating.
An Alberta-Licensed Broker Who Works Remotely
Rowan is based in Vancouver and serves Alberta clients by phone, video and secure online application. Your mortgage is registered in Alberta, your lawyer is local, and your lenders are national. What you gain is 20 years of experience with difficult files: Rowan regularly closes deals other brokers turned down. As one client put it in a Google review, "He saved my house."
Rowan Smith Mortgage Broker - City Wide Mortgage Services Serves Clients Across the Following Areas
Rowan works with clients across alberta and nearby communities. Because every step is handled by phone, video and secure online application, you get the same service wherever you buy.
Frequently Asked Questions
Can I get a private mortgage in Alberta with bad credit?
Often, yes. Private lenders focus on equity and the exit plan more than your credit score.
How much can I borrow?
It depends on how much equity you have. Private lenders lend a percentage of the property's value, not the full amount, and the percentage varies with the property type and location.
How fast can a private mortgage close?
Much faster than a bank. When the documents and appraisal are ready, funding can happen within days.
Are private mortgages regulated?
The mortgage broker must be licensed by RECA, which regulates brokers' conduct and disclosure. Always confirm your broker's licence before you proceed.
How long will I be in a private mortgage?
Most clients use one for one to two years, then refinance back to a bank or alternative lender.
Get in Touch
Contact Rowan Smith Mortgage Broker
- Book a free consultation with an Alberta-licensed broker who has access to 81+ lenders and works with Calgary clients every step of the way. Call (604) 657-6775 or apply online.
