Private Mortgage Cost Calculator
Private mortgages in Ontario are usually interest-only, and the fees matter as much as the rate. Enter your numbers to see the monthly payment, the fees deducted from your advance, and the total cost over the term.
Your numbers
Estimated cost
- Interest-only monthly payment
- $1,665
- Total interest over the term
- $19,980
- Lender + broker fees
- $6,000
- Legal & appraisal
- $2,500
- Net funds advanced to you
- $191,500
- Total cost of borrowing
- $28,480
Annualized, that is roughly 14.24% of the loan amount per year once fees are included.
Estimate only. Actual rates, fees and structure depend on the property, the lender and a full review of your file. Not an offer or a commitment to lend.
Questions about private mortgage cost
- How are private mortgage payments calculated?
- Most private mortgages in Ontario are interest-only. The monthly payment is the principal multiplied by the annual rate, divided by twelve, with the full principal repaid at the end of the term.
- What fees come with a private mortgage?
- Expect a lender fee and a broker fee, each typically expressed as a percentage of the loan amount, plus legal costs and an appraisal. Fees are usually deducted from the advance rather than paid up front.
- Is a private mortgage worth the cost?
- It depends on the alternative. Compared with clearing arrears to stop a power of sale, or with 25% credit card interest, a one-year private mortgage is often the cheaper outcome. Compared with a bank mortgage you could actually qualify for, it is not.
Read more on private mortgages in Toronto or compare with a second mortgage.
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