Refinance · Private lending
Private mortgages are typically short-term, equity-driven loans used when traditional bank financing is not available, when the timeline is too tight for institutional underwriting, or when a borrower needs short-term capital before refinancing back to an A-lender. We act on both sides of these transactions.
What we do
On the borrower side, we act for property owners taking out a private mortgage to refinance an existing loan, to access equity, or to bridge a financing gap. The work is similar to an institutional refinance but with closer attention to lender fees, prepayment terms, default provisions, and the exit plan.
On the lender side, we act for private lenders making real-estate-secured loans to BC borrowers. The work is loan documentation, security registration (mortgage, sometimes assignment of rents, sometimes personal guarantees), priority confirmation, and closing the advance.
We do not generally act for both parties on the same transaction. Where both sides want us to coordinate the file, one party retains separate counsel for arm's-length representation.
Independent Legal Advice (ILA)
Many private lenders require the borrower to obtain Independent Legal Advice before signing — particularly where there are personal guarantees, where the borrower is using a corporation, or where the loan terms are non-standard. ILA is a separate engagement: the borrower meets with a lawyer who has no other involvement with the file, the lawyer reviews the loan documents, and the lawyer signs an ILA certificate confirming that the borrower understood the terms before signing.
We provide ILA as a fixed-fee engagement on a per-file basis. The session typically takes 30 to 60 minutes; the certificate goes back to the lender's lawyer and the closing proceeds.
Frequently asked
Three common scenarios: (1) the bank declined the file because the borrower's income, credit, or employment does not fit institutional underwriting — but the equity in the property is solid; (2) the timeline is too tight for a traditional refinance — for example, financing has fallen through days before closing on a purchase; (3) the borrower needs short-term capital for a specific purpose (a renovation, a tax bill, a closing on another property) and intends to refinance back to an institutional lender once the situation is resolved.
Higher rates and shorter terms than institutional loans, plus lender fees on closing. Rates vary widely with market conditions, the borrower's profile, and the loan-to-value ratio; lender fees are typically a percentage of the loan amount and paid at closing. Terms are usually 6 months to 2 years, with the expectation that the borrower will refinance back to an A-lender or sell the property at the end of the term.
Often yes, particularly when the borrower is signing personal guarantees or where the lender wants documented evidence that the borrower understood the terms. ILA means the borrower meets with an independent lawyer (someone other than the lawyer acting on the deal) to review the loan documents and confirm understanding. We provide ILA as a separate engagement on private lending files where the parties want it.
Yes, very commonly. Private lenders are willing to take second and sometimes third position behind an existing first mortgage, where the equity supports the loan. The interest rate increases with the priority position; a second mortgage at 70% combined LTV will price differently than a third mortgage at 85% combined LTV.
Faster than institutional. From the day we have the lender's commitment and the title in hand, a private refinance can close in 2 to 4 business days when needed. We have closed urgent files in 24 to 48 hours where the lender, the borrower, and the file are all ready. Telling us the urgency at intake matters — we can prioritise the file.
Generally no — acting for both sides on a lending transaction is a conflict of interest. The exception is private lending in narrow circumstances where both parties consent in writing and the conflict can be managed. In most cases we act for one side and the other side retains separate counsel; we coordinate the file with the other lawyer to keep the closing on schedule.
Tell us where you are in the file — borrower or lender, the lender's commitment terms, the timeline. We'll come back with a fee and a closing plan.