Current Private Mortgage Rates in Ontario
As of early 2026, private mortgage rates in Ontario typically range from 8% to 15%. Where your rate falls within that range depends on several measurable factors.
| Mortgage Position | LTV Range | Typical Rate |
|---|---|---|
| First mortgage | Under 50% | 8% - 9.5% |
| First mortgage | 50% - 65% | 9% - 11% |
| First mortgage | 65% - 75% | 10% - 12% |
| Second mortgage | Under 65% combined | 10% - 12% |
| Second mortgage | 65% - 80% combined | 11% - 14% |
| Second mortgage | 80% - 85% combined | 12% - 15% |
Source: Industry data compiled from FSRA-licensed brokerages and bestrates.ca (March 2026)
The Single Biggest Factor: Loan-to-Value Ratio
LTV is the most important variable in private mortgage pricing. It measures how much you are borrowing relative to your property's appraised value.
Calculation: LTV = Mortgage Amount / Property Value x 100
Example: A $400,000 mortgage on a $600,000 property = 66.7% LTV
Most private lenders cap their exposure at 75% LTV for first mortgages and 85% combined LTV for second mortgages. The lower your LTV, the less risk for the lender, and the better your rate.
How Rates Compare to Other Products
To put private mortgage rates in context, here is how they stack up against other lending options available in early 2026:
| Product | Rate Range | Qualifying Requirements |
|---|---|---|
| Major bank 5yr fixed | 3.5% - 4.5% | 650+ credit, full income docs, stress test |
| Major bank 5yr variable | 3.3% - 4.0% | 650+ credit, full income docs, stress test |
| B-lender fixed | 5.5% - 8.5% | 500+ credit, flexible income docs |
| Private first mortgage | 8% - 12% | Equity-based, no credit minimum |
| Private second mortgage | 10% - 15% | Equity-based, no credit minimum |
Source: Bank of Canada posted rates; Ratehub.ca (March 2026)
The Bank of Canada's policy rate is currently 2.25%, after nine cuts from the 5% peak. This has brought bank mortgage rates down significantly, but the spread between bank rates and private rates remains consistent because private lending carries inherently higher risk.
Source: Bank of Canada, Policy Interest Rate (March 2026)
Rate by Property Type
The type and location of your property also affect pricing:
| Property Type | Rate Impact | Notes |
|---|---|---|
| Detached home (urban GTA) | Best rates | Most liquid, easiest to sell |
| Detached home (suburban) | Slightly higher | Good demand, slightly longer sale timeline |
| Condo (urban) | Competitive | Subject to status certificate review |
| Semi-detached / Townhouse | Competitive | Similar to detached in most markets |
| Multi-unit (2-4 units) | +0.5% - 1% | Rental income can help, but more complex |
| Rural residential | +1% - 2% | Longer sale timelines, fewer comparable sales |
| Commercial | +2% - 3% | Specialized lenders, higher minimums |
| Vacant land | Highest rates | Most risk, limited lender appetite |
The True Cost: Beyond the Interest Rate
The headline interest rate is only part of the equation. Here is a complete cost breakdown for a typical $300,000 private first mortgage at 10% for 12 months:
| Cost Component | Amount | Notes |
|---|---|---|
| Interest (12 months) | $30,000 | $2,500/month interest-only |
| Lender fee (2%) | $6,000 | Deducted from advance |
| Broker fee | $3,000 - $4,500 | Typically 1-1.5% |
| Legal fees (your lawyer) | $1,200 - $1,800 | Mortgage registration |
| Legal fees (lender's lawyer) | $800 - $1,200 | Borrower usually pays |
| Appraisal | $350 - $500 | Independent appraiser |
| Total cost (12 months) | $41,350 - $44,000 | Effective rate: ~14-15% |
This is why it is essential to understand the total cost of borrowing, not just the interest rate. A mortgage advertised at 10% may effectively cost 14-15% once all fees are factored in.
Ontario Property Values: Current Context
Private mortgage rates are tied to property values through the LTV calculation. Here is where Ontario markets stand as of early 2026:
| Market | Avg. Price (Jan 2026) | YoY Change |
|---|---|---|
| Greater Toronto Area | $973,289 | -6.5% |
| City of Toronto | $948,698 | -3.8% |
| Winnipeg (for comparison) | $431,079 | +4.0% |
| National average | $652,941 | -2.6% |
Ontario is the only province where CMHC projects continued price declines in 2026 before a recovery in 2027. This means lenders are being cautious with appraisals, and your actual LTV may be higher than expected if your property has lost value.
Source: CREA Statistics (January 2026); CMHC Housing Market Outlook (February 2026)
How to Get the Best Private Mortgage Rate
- Maximize your equity: Borrow only what you need to keep LTV low
- Choose urban properties: GTA and major city properties get the best pricing
- Have a clear exit strategy: Lenders want to know how the mortgage will be repaid
- Get a recent appraisal: An up-to-date appraisal prevents surprises
- Work with an experienced broker: A broker with strong lender relationships can negotiate better terms
Explore our private mortgage solutions in Toronto for location-specific rates and service details.
Getting a Personalized Quote
Rate ranges are useful for planning, but your actual rate depends on the specific details of your property and situation. The best way to get an accurate number is to speak with a licensed mortgage broker who works with multiple private lenders.
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