Definition
A private lender is an individual, syndicate of investors, or non-regulated company lending money secured by a mortgage on real estate. In Québec, this market is indirectly framed by the Civil Code (real-security book) and the AMF Act when intermediated by a mortgage broker.
Typical profiles eligible for private lending: files refused at A and B (recent bankruptcy, very high LTV, uninhabitable property, urgent funds, flip project), commercial borrowers, short-term bridge loans. The loan is almost always designed for 6 to 24 months, the time to rebuild the file or resell.
Pricing: rate typically 8 to 14% in 2026 (vs. 5-7% in A), plus 2-4% origination fees, legal fees, broker fees 1-3%. The private lender registers its mortgage at the Land Registry like a traditional lender. Watch for automatic renewal clauses and steep breakage penalties. Always have the contract reviewed by an independent notary.