Why a single advertised rate is not enough
Pricing can depend on mortgage position, total loan-to-value, property type and location, payment ability, term, documentation, and exit strategy. This website does not publish a universal offered rate or guaranteed lending limit.
Build an itemized cost picture
Request the actual amounts and when each is payable.
| Cost | What to clarify |
|---|---|
| Interest | Rate, calculation method, payment frequency, and whether interest is prepaid or added to the balance. |
| Lender and brokerage fees | Amounts, recipient, whether charged at closing or renewal, and whether deducted from proceeds. |
| Appraisal and legal expenses | Who orders the work, who pays, and whether additional reports or independent advice are needed. |
| Title, registration, and payout | Closing charges, discharge fees, penalties, and early repayment conditions. |
| Renewal and maturity | Whether renewal is available, its costs, and the balance due if it is not. |
A hypothetical illustration
A $100,000 interest-only loan at an illustrative 10% annual simple interest rate over 12 months has $10,000 of interest. If $4,000 in fees is deducted at closing, the borrower receives $96,000 and still owes $100,000 in principal at maturity, assuming all interest is paid when due. Other costs can apply. This is arithmetic, not an available offer.
Ask for the commitment in writing
Compare net proceeds, all payments, term, security, maturity balance, renewal conditions, and payout charges. A provider should explain why the proposed product fits your needs and what alternatives were considered.
Further reading: FSRA’s consumer guide to private mortgages ↗. Provincial requirements differ.