Private Mortgages

How does the private mortgage process work?

For a step-by-step guide to the private mortgage process, please follow this link: Steps to Refinancing Closing. 

What information does Fletcher Barrow need to facilitate my mortgage?

After completing our intake form  you will receive a personalized roadmap outlining all required documents.
Typically, we will need:

• Government-issued photo ID,
• Void cheque or banking details,
• Insurance binder listing the private lender as mortgagee,
• Property tax bill,
• Current mortgage statement (if applicable).

Please ensure your private lender knows we are representing you so they can forward the mortgage instructions to our office.

What costs are involved in securing a private mortgage?

Closing costs typically consist of:

• Legal Fees (quoted upfront),
• Disbursements, such as title search fees, title insurance premiums, and registration fees,
• Lender Fees (charged by the private lender),
• Broker Fees (if you are using a mortgage broker).

For a personalized quote, please follow this link: Get Quote.

What if challenges arise during the mortgage process?

Our experienced legal team is skilled at handling issues such as title discrepancies, lien removals, or last-minute lender conditions.
We proactively work to resolve any issues and ensure your closing stays on schedule.

What is the difference between a private mortgage and a traditional mortgage?

A private mortgage is issued by an individual or a corporation rather than a traditional financial institution like a bank.
Private mortgages often have:

• Higher interest rates,
• Shorter terms (often 1-3 years),
• More flexible approval requirements based on property value rather than income or credit score.

They are ideal for borrowers who may not qualify under traditional lending criteria.

How quickly can a private mortgage close?

Private mortgages are typically faster to close than traditional mortgages.
Depending on document readiness and lender responsiveness, the process can sometimes be completed within 5–10 business days.

Can I pay off a private mortgage early?

Most private mortgages include a “prepayment clause” allowing you to pay off the mortgage early, but they may charge a prepayment penalty.
Always review your mortgage commitment carefully or consult us to confirm your rights and obligations regarding early payout.

What happens if I miss a payment on a private mortgage?

Private lenders generally have stricter enforcement terms compared to traditional banks.
Missing payments could lead to:

• Late fees,
• Default notices,
• Potential power of sale proceedings (forced sale of the property).

If you anticipate payment issues, it’s crucial to communicate with your lender and seek legal advice immediately.

Will you discharge my previous mortgage if I am refinancing into a private mortgage?

Yes. If you are using the private mortgage to pay off an existing mortgage or debts, we will:

• Obtain payout statements,
• Pay off existing charges,
• Discharge the old mortgage(s) from the property’s title as part of the transaction.

Do I need title insurance for a private mortgage?

Typically, yes.
Title insurance protects both the lender and (optionally) the borrower against title defects, fraud, and other risks.
Most private lenders will require a valid lender’s title insurance policy as a condition of advancing funds.