What Are the Current Private Mortgage Lenders Rates in Ontario?

If you’re exploring private mortgage options in Ontario, understanding the current rates is crucial. Private mortgage lenders offer alternatives to traditional banks, especially for those with unique financial situations.

Current Rates Overview

As of 2025, private mortgage lenders rates in Ontario typically range:

• First Mortgages: Approximately 5.29% to 8%.

• Second Mortgages: Approximately 6.99% to 13.99%.

These rates can vary based on several factors, including the loan-to-value (LTV) ratio, creditworthiness, and income.

Factors Influencing Rates

Several elements can influence the rates offered by private mortgage lenders:

• Loan-to-Value (LTV) Ratio: Lower LTV ratios often result in better rates.

• Property Location: Urban properties may secure lower rates than rural ones.

• Borrower’s Credit Profile: While less critical than with traditional lenders, it still plays a role.

• Loan Purpose: First mortgages often have lower rates than second mortgages.

• Term Length: Shorter terms may have slightly lower rates.

• Market Conditions: Overall economic factors and real estate trends can influence rates.

Additional Costs

Beyond interest rates, borrowers should be aware of additional fees:

• Lender Fees: Typically range from 1.5% to 3% of the loan amount.

• Broker Fees: Often match the lender fee, around 1.5% to 3%.

• Other Costs: Appraisal fees, legal fees, and administrative costs can also apply.

Conclusion

Private mortgage lenders rates in Ontario can be higher than traditional bank rates, but they offer flexibility for those who may not qualify for conventional loans.

By understanding the current rates and associated costs, you can make informed decisions that align with your financial goals.