Private Mortgages
Private mortgage lending and borrowing is a significant part of our daily practice. We act for private lenders, mortgage investment corporations, brokers, and borrowers, and we make sure the security is properly documented and registered.
Lender & Borrower Representation
For private lenders we prepare the full loan and security package: commitment letters, mortgage and charge documents, promissory notes, general security agreements, assignments of rents, postponements, guarantees, and independent legal advice arrangements for guarantors where required.
For borrowers we explain the true cost of the loan, the term and renewal mechanics, prepayment and discharge terms, the default and power-of-sale consequences, and any broker or lender fees deducted from the advance, so there are no surprises later.
Private Mortgage Legal Services
Loan & Security Packages
Drafting commitment letters, charge documents, promissory notes, GSAs, assignments of rents, postponements, and guarantees.
Independent Legal Advice (ILA)
Arranging and executing required Independent Legal Advice for guarantors and related parties in private lending transactions.
Borrower Advisory & Fee Audits
Explaining the true cost of loans, term mechanics, default rules, power-of-sale risks, and lender/broker fee deductions.
Renewals & Amendments
Handling mortgage renewals, extensions, term amendments, partial discharges, and transfers of charge between lenders.
2nd & 3rd Mortgage Placements
Structuring and registering second and third mortgage placements behind institutional first mortgages securely.
Ontario Statutory Compliance
Ensuring full compliance with Ontario’s strict disclosure requirements for private mortgage lending transactions.
Due Diligence & Legal Process
Title & Encumbrances
We confirm title, verify existing encumbrances, and establish exact priority ranking for the security.
Appraisal & Property Audits
We review property appraisals, verify property tax status, and confirm fire insurance with lender loss payee naming.
Statutory Disclosure
We confirm strict compliance with Ontario’s disclosure requirements for private lending transactions.
Document & Register
We execute the full loan package, ensure ILA where needed, and register the charge accurately on title.
Rigorous Due Diligence
Due diligence on a private mortgage is the whole ballgame. We confirm title, verify existing encumbrances and their priority, review appraisals, confirm fire insurance with the lender named as mortgagee, verify property tax status, and confirm compliance with Ontario’s disclosure requirements for private lending transactions.
We also handle mortgage renewals, extensions and amendments, transfers of charge between private lenders, partial discharges, and second and third mortgage placements behind institutional first mortgages.
- Title & Priority Verification: Thorough auditing of existing liens, encumbrances, and charge priority.
- Insurance & Tax Audits: Ensuring loss payee compliance on fire insurance policies and verifying property tax status.
- Full Cost Transparency: Explicit disclosure of broker/lender fees deducted from advances to protect borrowers.
- Secondary Security Structuring: Precision drafting for 2nd and 3rd mortgage placements behind bank loans.
Frequently Asked Questions
What due diligence is involved in a private mortgage transaction?
Due diligence includes verifying title and existing encumbrance priority, reviewing appraisals, confirming fire insurance with the lender named as mortgagee, verifying property tax status, and ensuring compliance with Ontario disclosure requirements.
What loan documents are prepared for private lenders?
We prepare the complete loan package including commitment letters, mortgage charge documents, promissory notes, general security agreements, assignments of rents, postponements, guarantees, and ILA documentation.
How do you protect borrowers in private mortgage deals?
We explain the true cost of the loan, renewal mechanics, prepayment/discharge terms, default and power-of-sale implications, and all lender or broker fees deducted from the advance so there are no surprises.
Ready to Secure Your Private Mortgage Transaction?
Whether you are lending, borrowing, or managing a MIC portfolio, we make sure your security is properly documented and protected. Contact our office today.