How Private Mortgages Work in Alberta

A private mortgage is a short-term loan secured against real estate, funded by private capital instead of a bank. In Alberta it is the tool brokers and borrowers reach for when a bank says no, or when a bank's timeline does not fit the deal. Here is how it actually works, without the jargon.

WHAT A PRIVATE MORTGAGE IS

Banks lend based on the borrower: income documents, credit score, debt ratios. Private lending flips that. The decision is based mostly on the property itself, the equity in it, and a clear plan for how the loan gets paid out at the end. That is why a file a bank turned down can still be a straightforward approval for a private lender.

Private mortgages are short-term by design, usually around a year. They are a bridge from where you are to where you are going, not a 25-year commitment.

WHAT A PRIVATE MORTGAGE IS

None of these mean the borrower is a bad risk. They mean the borrower does not fit inside a bank's checklist this year.

HOW QUALIFYING WORKS

We look at four things: the property, the equity, the location, and the exit strategy. The exit strategy is the plan for paying the loan out at the end of the term. A sale, a refinance back to a bank once the situation is cleaned up, or the completion of a project. A deal with real equity and a believable exit is a deal we can usually work with, whatever the credit report says.

WHAT IT COSTS

Straight answer: more than a bank. Rates and fees are priced to the individual deal, based on equity, property, and position, and you see every number in writing before you commit to anything. What you are buying is speed, certainty, and a yes that the bank would not give. For a short term, that trade is often worth it. When it is not, we will tell you that too.

HOW FAST IT MOVES

Send us the deal and we aim to come back with a commitment quickly, usually the same day for a clear file. From there it is the appraisal and the lawyers, and funding typically follows in days rather than weeks. If your deal has a hard deadline, tell us up front and we will tell you honestly whether it is makeable.

WORKING WITH US

Most of our deals arrive through mortgage brokers, and we protect the broker relationship on every file. If you are a borrower without a broker, you can reach us directly and we will either arrange the mortgage or point you to someone who can. We arrange lending on properties across Alberta, British Columbia and Saskatchewan from our office in Calgary.

Have a deal in mind? Tell us about it on the contact page, or read more about what we arrange for borrowers.

Mortgage services are provided by Steven Loewer, licensed with Mortgage Connection. Lions Den Capital is a branding and advisory platform, not a lender, administrator, or separate reporting entity.

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