Private mortgage fees in Ontario can feel overwhelming. Every lender charges something different, brokers explain it differently, and Google rarely gives a straight answer.
So let’s break it down Lendworth-style: clear, honest, and homeowner-first.
Whether you're getting a first mortgage, second mortgage, bridge loan, HELOC alternative, or emergency equity loan, this guide explains:
What fees you actually pay
What’s fair vs. what’s predatory
Where your money goes
How to save thousands
How Lendworth keeps costs transparent
Let’s dive in.
🔍 Why Do Private Mortgage Fees Exist?
Private lenders operate differently than banks.
Banks make money from long-term interest, but private lenders take short-term, higher-risk files, and often close deals in days — not months.
Fees cover:
Underwriting and risk assessment
Fast turnaround (24–48 hrs vs 20–40 days at banks)
Higher-risk lending (credit issues, income issues, arrears, power of sale, etc.)
Capital placement for investors
Legal and administrative work
Fees aren’t random — but they must be fair and disclosed in writing.
💸 The 7 Types of Private Mortgage Fees (Explained in Plain English)
1. Lender Fee (1–3% on average)
This is the most well-known fee.
Private lenders charge 1% to 3% depending on:
Loan amount
Risk profile
Priority (1st mortgage vs. 2nd mortgage)
Speed required
Property type
At Lendworth, lender fees are transparent, fixed upfront, and always disclosed before issuing a commitment.
2. Broker Fee (If a broker is involved)
Some borrowers come through a mortgage broker.
The broker charges their own fee, usually:
1% – 3% of the mortgage amount, depending on complexity
If you come directly to Lendworth, you avoid the broker fee altogether.
3. Appraisal Fee ($350–$700)
Required by almost every private lender.
It determines:
True property value
Loan-to-value
Risk
Maximum loan amount
Tip:
Lendworth often uses rapid desktop valuations at no cost, depending on the file.
4. Legal Fees ($1,200–$2,000 per side)
In Ontario private lending, there are two lawyers:
Your lawyer (independent legal advice)
Lender’s lawyer
This protects both sides and ensures full transparency.
5. Title Insurance ($300–$900)
Required on all private mortgages.
It protects against:
Fraud
Title defects
Registration errors
6. Discharge / Payout Fees ($300–$500)
Charged when the mortgage is paid off or refinanced.
Every lender in Ontario charges this.
7. Renewal Fees (Case-by-case)
If your term ends and you need more time, lenders may charge a small fee to extend.
Lendworth keeps renewals simple, fair, and often discounted for good-standing clients.
⚠️ The Danger Zone: What “Bad” Lenders Charge
Not all lenders operate ethically.
Watch for:
Hidden broker fees
Admin fees disguised as “processing fees”
Double lawyers fees
Marked-up lender legal charges
Inflated appraisal fees
“Emergency same-day fees” (a red flag)
Renewal fees higher than your original lender fee
“Exit fees” not disclosed upfront
If anything feels off, trust your gut — or send it to Lendworth for review.
We’ll tell you straight if you’re being overcharged.
🏦 What’s Fair? (Ontario Benchmark)
Here’s what fair, compliant private mortgage pricing looks like:
| Fee Type | Fair Range | Lendworth Standard |
|---|---|---|
| Lender Fee | 1–3% | Transparent + upfront |
| Broker Fee | 0–3% | $0 when you come direct |
| Appraisal | $350–$700 | Often waived (desktop) |
| Legal Fees | $1,200–$2,000 | Standard, never inflated |
| Renewal Fee | 0–3% | Fair, simple, disclosed |
| Exit Fee | $0–$300 | $0 (we don’t hide them) |
📘 Real Example: A $300,000 Second Mortgage Fee Breakdown
Here’s what a typical Ontario private mortgage looks like:
Lender fee (2%) → $6,000
Broker fee (if any) → $0–$6,000
Appraisal → $400
Legal fees → $1,500 + $1,500
Title insurance → $450
Admin/registration → $250
Total estimated fees: $8,600–$14,600
Borrowers are shocked at how big the broker portion often is.
This is why going direct can save thousands.
💡 How to Reduce Your Private Mortgage Fees
You CAN lower your costs. Here’s how:
1. Apply directly with a lender
No broker = no broker fee.
2. Provide documents quickly
Fast files = lower risk = lower fees.
3. Keep your credit clear of new arrears
Late payments increase pricing.
4. Borrow only what you need
Lower loan amount = lower fees.
5. Work with transparent lenders (like Lendworth)
We don’t believe in hidden costs.
Every number is shown, explained, and agreed before closing.
🚀 Why Lendworth Is Different
Lendworth was built on one principle:
“Your equity deserves more.”
We keep private mortgage fees:
Fair
Disclosed
Simple
Fully transparent
Explained upfront
No games.
No balloon charges.
No surprises at closing.
📞 Ready to see your fee breakdown?
We can show you exactly:
How much you can borrow
What your fees would be
How fast we can close (24 hours)
How to reduce your costs
👉 Call us at 905-597-1225
👉 Or apply at Apply Here