Private Commercial Mortgage Canada

Private Financing for Commercial Real Estate

Banks turn down strong deals every day. Vacant units, non-standard income, tight timelines, properties in transition. None of that means your deal is bad. It means it does not fit institutional criteria. We arrange private commercial mortgages through mortgage investment corporations, private funds, and individual lenders who underwrite based on the property and your plan, not a rigid checklist. Closings happen in one to three weeks, terms are structured around your situation, and every deal includes a clear exit strategy into lower-cost financing.

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Private Commercial

Up to 75%

Loan-to-Value

$100k – $100m

Mortgage Amount

Interest Only

Amortization Length

Prime + 3% to 6%

Rate Estimate ⓘ

About Private Commercial Mortgages

Why Private Commercial Mortgages Require a Broker

Private commercial lenders in Canada do not advertise on rate comparison sites. Most do not work with borrowers directly. The best rates, the most flexible terms, and the fastest closings happen through brokers who have volume relationships with credible private capital sources. Without one, you are either overpaying or working with a lender you cannot properly evaluate.

  • You are limited to lenders you can find online, which excludes the majority of institutional private capital
  • Term sheets can include buried costs like discharge penalties, renewal fees, or compounding interest that are easy to miss
  • No one is structuring your exit strategy, which means you may pay private rates longer than necessary

  • Access to MICs, private funds, and syndicate lenders who only accept broker-submitted deals
  • Multiple term sheets create competitive pressure on rate, fees, and prepayment flexibility
  • We review every term sheet line by line so there are no surprises at renewal or discharge
  • Your exit into conventional financing or CMHC-insured lending is planned from day one
Our Process

From Application to Funded in Weeks, Not Months

We start with a conversation about the property, the financing need, and your timeline. Whether you are purchasing, refinancing, completing a renovation, or bridging a gap, we need to understand the full picture before approaching any lender.

Step 1

Tell Us About Your Deal

We start with a conversation about the property, the financing need, and your timeline. Whether you are purchasing, refinancing, completing a renovation, or bridging a gap, we need to understand the full picture before approaching any lender.

Step 2

We Match You to the Right Lender

Not all private lenders are the same. MICs, private funds, and individual lenders each have different risk appetites, rate structures, and deal preferences. We present your file to the lenders most likely to offer the strongest terms for your specific situation.

Step 3

Term Sheet Review and Negotiation

Once term sheets come back, we review every detail: interest rate, lender fees, prepayment terms, renewal conditions, and discharge provisions. We negotiate where there is room and present your options with a clear comparison so you can make an informed decision.

Step 4

Due Diligence and Closing

After you accept a term sheet, we coordinate the appraisal, title review, and any required property inspections. Private commercial mortgages typically close within one to three weeks of commitment, depending on the complexity of the deal.

What We Finance

Private Commercial Mortgage Use Cases

Private commercial mortgages are not a single product. They are a flexible financing tool that adapts to a wide range of situations where conventional lenders cannot or will not participate. These are the most common scenarios where we arrange private capital for commercial borrowers across Canada.

Purchases with Tight Timelines

You have a closing date the bank cannot meet. Private lenders can fund acquisitions in as little as five business days when the property and deal structure are straightforward.

Properties in Transition

Vacant buildings, assets undergoing renovation, or properties with below-market occupancy do not qualify for conventional underwriting. Private lenders evaluate the property’s potential, not just its current income.

Non-Standard Borrower Profiles

Self-employed income, recent credit events, complex corporate structures, or insufficient documentation for institutional lending. Private underwriting focuses on the asset and the exit plan.

Bridge to Conventional Financing

You need capital now while a construction project finishes, a tenant signs a lease, or your property stabilizes enough to qualify for a conventional term. Private lending holds the position until you can transition to a lower rate.

Refinancing Under Pressure

A maturing mortgage with no renewal offer, a lender pulling out of a market, or a need to consolidate debt quickly. Private refinancing solves immediate capital problems while you arrange longer-term solutions.

Second Mortgages and Subordinate Debt

When your first mortgage is in place but you need additional capital for improvements, acquisitions, or operations, a private second mortgage can fill the gap without disturbing your existing financing.

Where We Work

Where We Arrange Private Commercial Mortgages

We arrange private commercial mortgages in British Columbia, Alberta, and Ontario. Each province has a different lending landscape, different regulatory requirements, and different private capital sources. Here is how the market breaks down by region.

Commercial Mortgages in British Columbia

British Columbia

Private commercial mortgage activity in BC is concentrated in Metro Vancouver, the Fraser Valley, Victoria, Kelowna, and Kamloops. High property values in the Lower Mainland mean most private deals in BC involve mid-to-large loan amounts. We work with lenders who are comfortable with BC’s market dynamics and understand the regulatory environment, including BC’s Mortgage Brokers Act.

Commercial Mortgages in Alberta

Alberta

Alberta’s higher cap rates and more moderate price points make private commercial lending straightforward in Calgary, Edmonton, Red Deer, and Lethbridge. Loan-to-value ratios tend to be more favourable here because appraisals align more closely with income. Private lending is common for value-add multi-family, industrial properties, and land transactions.

Commercial Mortgages in Ontario

Ontario

Ontario has the highest concentration of private commercial lenders in Canada, including many of the country’s largest MICs. We arrange private mortgages for properties in Toronto, Ottawa, Hamilton, London, Kitchener-Waterloo, and across the GTA. Ontario’s FSRA-regulated environment gives borrowers additional oversight protections when working with licensed mortgage brokerages.

Why Cedar Commercial

A Broker Built for Non-Standard Deals

Most mortgage brokers focus on conventional deals because they are easier to place. We built Cedar Commercial around the transactions that require more work: complex borrower profiles, unconventional assets, and situations where the deal makes sense but the paperwork does not fit a bank’s template. That is where we add the most value.

Direct Access to Private Capital

We maintain active relationships with MICs, private lending funds, and syndicate lenders across Canada. These are not directory listings. They are lenders we have closed deals with, who take our calls and prioritize our files.

Exit Strategy from Day One

Getting into a private mortgage is the easy part. Getting out on schedule, into conventional or insured financing at a lower rate, is where most borrowers need help. We structure every private deal with a clear path to refinance so you are not paying private rates a day longer than necessary.

Full Cost Transparency

Private lending has a reputation for hidden fees. We break down every cost before you sign: interest rate, lender fees, broker fees, legal costs, appraisal, and discharge provisions. No surprises at renewal. No unexpected penalties at payout.

Frequently Asked Questions

A private commercial mortgage is a loan secured against commercial real estate and funded by a non-institutional lender, such as a mortgage investment corporation (MIC), private fund, or individual investor. These lenders are not banks or credit unions, which means they are not bound by the same regulatory underwriting criteria. They assess deals primarily based on the value of the property, the loan-to-value ratio, and the borrower’s plan for the asset. Private commercial mortgages are a recognized segment of the Canadian commercial lending market and are used by experienced investors and property owners across the country.

Most private commercial mortgages close within one to three weeks of commitment. Some straightforward deals can fund in as few as five business days. This is significantly faster than conventional lenders (4 to 12 weeks) or CMHC-insured financing (3 to 6 months). Speed is one of the primary reasons borrowers choose private lending, particularly for acquisitions with firm closing dates or situations where an existing mortgage is maturing with limited time to arrange alternatives.

Most private commercial lenders in Canada advance between 55% and 75% of the property’s appraised value. The exact LTV depends on the property type, condition, location, and the lender’s risk appetite. Some lenders will consider higher leverage on strong assets with clear exit strategies, but this typically comes with a higher rate and additional fees. For comparison, conventional lenders typically offer 65% to 75% LTV, and CMHC-insured programs can reach up to 95% LTV for qualifying multifamily properties.

Private lenders are broadly flexible on property type. Common categories include multi-unit residential buildings, retail and mixed-use properties, industrial and warehouse facilities, office buildings, hotels, land for development, and certain specialty assets like self-storage or agricultural properties. The key factor is whether the property provides adequate security for the loan, not whether it fits into a specific institutional asset class. Properties with vacancy, deferred maintenance, or environmental considerations that would disqualify them from bank financing are routinely funded through private channels.

A conventional commercial mortgage comes from a bank, credit union, or insurance company and is underwritten based on the borrower’s income, credit history, and the property’s stabilized cash flow. A private commercial mortgage comes from a non-institutional source and is underwritten primarily on the property’s value and the borrower’s exit strategy. Private mortgages have higher rates and shorter terms but offer faster closings, more flexible qualification criteria, and the ability to fund deals that institutional lenders cannot. Most borrowers use private lending as a short-term solution while positioning for a conventional refinance.

Credit is considered but is not the deciding factor. Private lenders focus primarily on the property value, loan-to-value ratio, and exit strategy. Borrowers with recent bankruptcies, consumer proposals, tax arrears, or low credit scores can qualify if the asset is strong and the plan makes sense. That said, significant credit issues may result in a lower LTV, a higher rate, or additional conditions like personal guarantees.

Typical fees include a lender fee (1% to 3% of the loan amount, deducted from the advance), a broker fee (typically 1% to 2%), legal costs for both the borrower and lender, an appraisal fee, and any required inspection or environmental report costs. Some lenders also charge renewal fees or discharge penalties. We disclose all fees upfront and walk you through the total cost of borrowing before you sign anything.

Yes, and you should plan to. Private commercial mortgages are designed as short-term financing, typically 6 months to 3 years. The goal is to address whatever issue prevented conventional financing, whether that is vacancy, credit, income documentation, or property condition, and then transition to a lower-rate conventional mortgage or insured product. We build this exit plan into every deal from the start so you know exactly what benchmarks to hit and when.

There is significant overlap. A bridge loan is a type of private mortgage used specifically to “bridge” a short-term gap, such as between purchasing a new property and selling an existing one, or between construction completion and conventional financing. All bridge loans are private mortgages, but not all private mortgages are bridges. A private mortgage might also be used for a longer-term hold on a property that simply does not fit bank criteria, with refinancing planned at a later date once the asset stabilizes.

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