Ontario mortgage help
Private mortgages in Ontario
Private mortgages are generally short-term and can involve higher rates, fees, and restrictions. The repayment or replacement plan should be realistic before the mortgage begins.
What to do first
Write down the specific problem the private mortgage must solve and the required amount.
Calculate the net funds received after lender, brokerage, legal, appraisal, and other fees.
Calculate interest, payments, and the balance due at maturity.
Define a dated exit route and a fallback if the primary route does not work.
Important considerations
Interest-only does not reduce principalIf payments cover interest only, the original principal remains due at maturity unless fees or missed amounts increase it.
Fees change the real costFees may be paid in cash, deducted from proceeds, or added to the mortgage. Each treatment changes the net advance and maturity balance.
The exit is part of suitabilityFSRA says a realistic exit strategy is needed so the borrower has a credible route to lower-cost financing or repayment when the term ends.