Most homeowners want to know one thing before getting a private mortgage:

“How much does it cost?”

At Lendworth, we believe in total transparency.

This page breaks down every fee, cost, and expense associated with a private mortgage in Ontario — so you know exactly what to expect before moving forward.

What private lenders REALLY charge — and how to avoid overpaying

If you're searching for a private mortgage in Ontario, you’ve probably asked yourself the same question every homeowner does:

“How much does a private mortgage actually cost?”

Here’s the truth:

Private lenders all price differently, and most people don’t realize what’s normal — or when they’re being overcharged.

This guide breaks down every fee, every cost, and every factor that affects the price of a private mortgage in Ontario, so you can borrow confidently and avoid surprises.

And yes — Lendworth gives full written cost disclosures upfront before you ever sign anything.

🔹 Why Private Mortgage Costs Are Different From Bank Mortgages

Banks lend based on:

• Your income

• Your credit

• Your debt ratios

• Your employment history

Private lenders don’t.

Private mortgages are equity-based, meaning your home value and loan-to-value ratio (LTV) determine nearly everything — including your rate and fees.

That’s why someone with bruised credit and no income can still get approved, as long as they have equity.

🔹 Typical Private Mortgage Rates in Ontario (2025)

Here’s what’s considered standard this year:

Rates improve when:

• LTV is under 70%

• Property is in the GTA, Vaughan, Toronto, or surrounding high-demand zones

• Loan term is shorter

• Market value is strong and verified by appraisal

At Lendworth, we price loans fairly and transparently — no inflated rates, no hidden charges.

🔹 Private Mortgage Fees: The Full Breakdown

Private mortgages come with several one-time fees, all deducted from your mortgage proceeds.

Here’s what’s normal in Ontario:

1. Lender Fee (1%–3%)

This is the fee charged by the lender for providing capital.

2. Broker Fee (0%–2%)

👉 When you come directly to Lendworth, you avoid unnecessary broker fees.

3. Borrower’s Legal Fees ($1,200–$1,800)

Your lawyer handles closing, title searches, and registration.

4. Lender’s Legal Fees ($1,200–$2,000)

Paid from the mortgage funds — not out of pocket.

5. Appraisal Fee ($550–$1,000)

The lender must confirm the property’s fair market value.

6. Title Registration & Search Fees ($95–$350)

Standard legal costs depending on your lawyer.

7. Discharge / Payout Fees (Varies)

Only applies if an old mortgage is being replaced.

None of these are “junk fees” — they are standard across the private lending industry.

🔹 What a Typical Private Mortgage Closing Looks Like

Here’s a real-world example based on a $250,000 private mortgage:

The best part?

No out-of-pocket expense — all fees come from the mortgage proceeds.

🔹 How to Reduce Costs on a Private Mortgage

There are several ways homeowners can pay less:

✔ Lower your LTV

The more equity you have, the better your rate.

✔ Choose a shorter term

6-month or 1-year terms cost less in total interest.

✔ Use a lender that doesn’t charge extra broker fees

(Like Lendworth.)

✔ Avoid urgent POS situations

Emergency deals require more legal work.

✔ Stick to properties in liquid markets

Toronto, Vaughan, Mississauga, and similar areas always get better pricing.

Lendworth actively helps borrowers structure loans to minimize total cost, not maximize fees.

🔹 When Paying More Actually Makes Sense

Sometimes borrowers avoid fees — and accidentally make things worse.

A fast private mortgage can:

• Stop a Power of Sale

• Clear expensive arrears

• Pay off CRA debt

• Preserve your equity

• Prevent forced sale

Paying $6k–$10k in fees to protect $300,000+ in home equity is a no-brainer in emergency situations.

🔹 Is a Private Mortgage Worth It?

If the answer is:

• “I need cash fast,”

• “My bank said no,”

• “I have equity but can’t prove income,” or

• “I’m dealing with arrears / legal issues,”

Then yes — a private mortgage is often the smartest and fastest option.

Thousands of Ontario homeowners use private mortgages as a short-term, flexible solution until they qualify with a bank again.

🔹 Get a Free Private Mortgage Cost Estimate

You’ll receive a full written breakdown of:

• Interest rate

• Fees

• Legal costs

• Appraisal costs

• Total cost of borrowing

No credit check. No obligations.

Just transparent numbers.

📞 Call Lendworth Now: 905-597-1225

👉 Apply Online: Apply Now