Private Mortgage Lenders in Prince Edward Island
Private lending is equity lending: the property matters more than the borrower. Expensive, fast, and short-term. Here is what it costs in Prince Edward Island and when it is the right answer.
Who this covers
- Borrowers declined by both A and B lenders
- Files needing to close in days rather than weeks
- Owners with strong equity and a genuinely temporary problem — arrears, a tax lien, an unfinished renovation
What lenders look for
| Equity first | Most private lenders want 20% to 35% equity and care far more about the property than the income or the score. |
| Lender and broker fees | Both are normal here, typically 1% to 3% each, deducted from the advance. They should be quoted in writing before you commit. |
| Short terms | Six to twelve months is standard. A private mortgage is a bridge, and it should be arranged with a stated exit. |
| Interest only | Almost always. The balance does not reduce. |
Prince Edward Island rates for this file
Private mortgages in Prince Edward Island generally run well into double digits once fees are counted. The right comparison is not against a bank rate but against the cost of the problem being solved.
What a typical purchase looks like
| Typical price | $500,000 |
| Minimum down payment | $25,000 |
| RPTT | $5,000 |
National figure — we do not yet track a market in this province. Calculate yours →
Get notified 90 days before your renewal
Your lender contacts you at 30 days, when you have no time to shop. We reach you at 90 — early enough to lock a hold and personalize your offers.
Questions
How much does a private mortgage cost?
Rates well above prime lending, plus lender and broker fees of roughly 1% to 3% each. On a one-year term the effective cost is materially higher than the quoted rate, so ask for the all-in figure.
Is private lending safe?
The lending itself is regulated and the mortgage is a normal registered charge. The risk is entering one without an exit — a private mortgage with no plan to refinance out becomes very expensive very quickly.
How fast can it close?
Days rather than weeks, which is often the entire reason for using one. Speed is what you are paying for.
What does it cost to close in Prince Edward Island?
Real property transfer tax on a $500,000 purchase comes to $5,000, due in cash on closing. Full Prince Edward Island closing costs →
Private Mortgage in Prince Edward Island?
Send us the file and a licensed broker comes back with what is realistically available — which lenders will take it, at what rate, and what they will want to see.
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