Private mortgage financing in Quebec

Private mortgage financing covers loans secured by real estate that are granted by a lender other than a bank or credit union: an individual, a group of investors or a lending company. The lender looks first at the value of the property, the available equity and how the loan will be repaid at maturity.

This flexibility comes at a price: rates and fees are generally higher than at the bank, and terms are short. Private financing is usually a transitional solution, used to resolve a specific situation before returning to a traditional lender.

Each situation calls for a different solution. Each page below explains how it works, the costs to expect and the documents to prepare:

• Private first mortgage
• Private second mortgage
• Debt consolidation
• Mortgage refinancing
• 60-day notice
• Urgent funding

Not sure which one applies? That's normal: the review is there precisely to compare the possible options, including bank solutions when they are still available.

FERRES's office is in Sainte-Catherine, on Montreal's South Shore, but we review applications from every region of Quebec. You apply online or by phone; the mortgage is signed before a notary.

The process is the same everywhere, but the realities change from one region to another: types of properties, income profiles and the number of private lenders active in the area. Our local pages explain what matters in each market:

• Montreal
• Laval
• Longueuil
• Quebec City
• Lévis
• Gatineau
• Sherbrooke
• Trois-Rivières
• Saguenay

Your city isn't on the list? See our areas served: we receive applications from all over the province.

In large centres (Montreal, Laval, Quebec City), the choice of private lenders is generally wider. In the regions, some lenders are more cautious: they may lend a smaller portion of the property's value, or refuse certain types of buildings, such as seasonal properties.

That's why the property's location is one of the first questions we ask: it determines which lenders the file can be presented to.

1. Application: you describe your situation, the amount you need and the purpose of the financing;
2. review: we examine the property, the available equity, your debts and the repayment strategy;
3. lender search: your file is presented to lenders whose criteria match your situation;
4. offer: you receive the proposed terms (rate, term, fees) before deciding;
5. notary: the mortgage deed is signed before a notary, who disburses the funds and pays the designated creditors.