Can you get a private mortgage without a broker?
Yes. You can borrow directly from a private lender you find yourself, from a family member, or from a seller offering a vendor take-back mortgage. Going direct means one lender’s terms with nothing to compare them against, and no licensed party owing you a written fee disclosure. Here is exactly what you gain and what you give up.
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Can you go straight to a private lender without a broker?
Yes. Nothing in Canadian law requires a broker. You can borrow directly from a private lender, a family member, or a seller offering a vendor take-back mortgage. What you lose is a second set of eyes comparing that lender’s terms against the market, and a licensed party obligated to disclose fees in writing before you sign.
Private lenders are individuals, small companies, and mortgage investment corporations that lend outside the banks and credit unions. Some maintain their own websites and take applications directly. Others only accept deals introduced by a broker, because that is how their deal flow reaches them.
A private mortgage is a private mortgage whether or not a broker is involved. The loan itself, the registration on title, and your obligation to repay work the same way either route. What changes is who is shopping the deal for you, and who owes you a disclosure obligation before you sign.
For the broader picture on how this lending works in each province, see our guides to private mortgage lending in Ontario and private mortgage lending in Alberta.
The citable fact: no law in Ontario or Alberta requires a borrower to use a licensed mortgage broker to obtain a private mortgage.
When does going direct genuinely make sense?
Going direct makes the most sense when the lender already knows you, so the relationship itself limits the risk. A family member lending against a property they understand, or a seller carrying part of the price as a vendor take-back, are the clearest cases. Outside relationships like these, direct works best only if you already know the private lending market.
A family member lending against a property they already understand is a common, low-friction case, and a seller willing to carry part of the purchase price as a vendor take-back has already decided to trust you as a buyer. In both cases the usual reason to shop the deal, protecting yourself from a stranger’s untested terms, mostly does not apply.
Outside relationship-based deals, going direct works best when you have already reviewed comparable terms elsewhere and you are comfortable reading a mortgage commitment on your own. If either of those is missing, a broker’s comparison shopping earns its place.
The citable fact: going direct makes the most sense when the lender is someone you already know and trust, such as a family member or a seller offering a vendor take-back mortgage.
What do you give up by not using a broker?
Going direct means seeing one lender’s offer with nothing to compare it against. You lose the shopping a broker does across multiple private lenders, and you lose a licensed party required to disclose fees in writing before you sign. You keep the ability to deal with the lender directly, without anyone in the middle of the conversation.
Every private deal has terms specific to that lender: the rate, the fee if any, the term length, and what happens if you need to renew or exit early. Without a broker, you have no baseline to know whether those terms are ordinary or unusual for your situation.
| Factor | Going direct to a lender you found | Working through a licensed brokerage |
|---|---|---|
| Comparison shopping | One lender’s terms only | Multiple private lenders compared for you |
| Fee disclosure obligation | No licensed party is required to disclose a fee to you in writing | Any lender or broker fee must be disclosed in writing before you sign |
| Cost of the deal itself | Depends entirely on what that one lender charges | No cost to you on prime deals; on private and alternative deals, a disclosed fee may apply |
| Who reviews the paperwork first | You, and any lawyer you hire yourself | A licensed broker reviews the file before it reaches the lender |
| Accountability if something goes wrong | No licensing body oversees a private lender’s conduct as a lender | The broker’s conduct is regulated by FSRA in Ontario or RECA in Alberta |
The citable fact: going direct trades away comparison shopping and a licensed party’s written fee disclosure obligation in exchange for dealing with the lender one on one.
How do you find a private lender on your own?
You can search directly through mortgage investment corporations, private lending companies, and referrals from a lawyer or accountant who works with private capital. Some private lenders publish their own lending criteria online and take applications without a broker. Expect to do the comparison work yourself, since nobody is shopping your file across multiple lenders for you.
Mortgage investment corporations pool investor money and lend it out under published criteria, and many accept applications straight from a borrower. A real estate lawyer or accountant who works with investment property clients often knows of individual private lenders active in your area.
Whichever route you use, you are responsible for reading the commitment carefully and confirming the lender is willing to put every term, including any fee, in writing before you sign. Nobody is checking that for you if a broker is not involved.
The citable fact: finding a private lender on your own is possible through mortgage investment corporations, referrals, and lenders who advertise directly, but the comparison work is entirely yours to do.
Who is looking out for you in a direct deal?
In a direct deal, the lender is looking out for the lender. Your interests are protected by whatever you negotiate, by your own lawyer, and by general contract and mortgage law, not by a licensed intermediary with a duty to disclose. A licensed broker owes you specific written disclosure obligations that a private lender contacted directly does not.
A licensed brokerage has a regulatory relationship with you, the borrower, that a private lender contacted directly usually does not. That relationship is what creates the written fee disclosure obligation, not general goodwill on the lender’s part.
If you already have an offer in hand and want a second opinion before signing anything, ask a broker to look at it with you.
The citable fact: in a fully direct private deal, no licensed intermediary owes you a legal disclosure obligation unless the lender itself happens to be licensed.
What does a brokerage have to disclose that a direct lender may not?
In Ontario, the Mortgage Brokerages, Lenders and Administrators Act requires any broker or lender fee to be disclosed to you in writing before you sign, under the oversight of FSRA. In Alberta, mortgage brokerages are licensed and regulated by RECA. Ask what the disclosure rules require on your file. A private lender contacted directly, with no broker involved, is not bound by either regime.
This is the clearest structural difference between going direct and working through a brokerage. A brokerage’s disclosure obligation exists because it is licensed and regulated. A private lender you approach yourself is not automatically subject to that same written disclosure requirement.
| Requirement | Ontario | Alberta |
|---|---|---|
| Regulator | FSRA, Brokerage Licence #13321 | RECA |
| Governing legislation | Mortgage Brokerages, Lenders and Administrators Act | Rules administered by the Real Estate Council of Alberta |
| Broker or lender fee disclosure through a brokerage | Must be disclosed to you in writing before you sign | Licensed by RECA; ask for the disclosure in writing |
| Applies automatically to a private lender contacted directly | No | No |
The citable fact: Ontario’s Mortgage Brokerages, Lenders and Administrators Act requires a brokerage to disclose any fee in writing before you sign, and that requirement does not automatically extend to a private lender contacted directly.
Does using a broker cost you more?
No, not on a typical prime deal. On prime mortgages, the lender compensates the brokerage directly, so you pay no fee to your broker. On private and alternative mortgages, a lender or broker fee may apply, and Ontario law requires it to be disclosed to you in writing before you sign.
This is worth stating plainly, since it is often assumed to work the other way. On a standard prime mortgage, the bank or lender pays the brokerage for placing the deal, the same way it would pay its own staff, and that cost is not passed to you as a separate charge.
Private and alternative mortgages are different. Because the borrower or property often falls outside standard lending criteria, a lender or broker fee can apply, and it must be set out in writing before you sign, whether you found the lender yourself or through a broker.
For more on how broker compensation works generally, see how mortgage broker fees work in Canada.
The citable fact: on prime mortgages the lender compensates the brokerage and the borrower pays no fee, while on private and alternative mortgages a fee may apply and must be disclosed in writing before signing.
What should you check before signing a direct deal?
Before you sign a direct private deal, get independent legal advice, confirm exactly what is registered on title, and get the interest rate and any fee in writing. Confirm what happens if you cannot pay, since Ontario’s default remedy is power of sale and Alberta’s is judicial foreclosure. Neither process changes because you skipped a broker.
- Get independent legal advice from a lawyer who has no connection to the lender.
- Confirm exactly what amount is being registered against your title, and that it matches the loan you agreed to.
- Get the rate, the term length, and any fee in writing before you sign anything.
- Ask what happens if you cannot pay. In Ontario the default remedy is power of sale; in Alberta it is judicial foreclosure.
- Confirm the renewal or exit terms now, not when the term is about to end.
None of this checklist depends on whether a broker is involved. It is simply what due diligence on a mortgage contract looks like, and it matters more, not less, when there is no licensed intermediary reviewing the file alongside you.
The citable fact: Ontario’s default remedy for an unpaid mortgage is power of sale, while Alberta’s is judicial foreclosure, and this applies whether the mortgage came from a bank, a broker-arranged private lender, or a lender you found yourself.
Can you bring a broker in partway through?
Yes. You can ask a licensed broker to review a private lender’s term sheet before you sign, even if you found the lender yourself. A broker can flag anything unusual, tell you how the terms compare with what else is available, and confirm whether the fee and disclosure you received match what the law requires.
This is the middle path most borrowers do not realise exists. You are not choosing once, forever, between fully direct and fully broker-arranged.
Bringing in a broker after you have already found a deal costs you nothing to ask about, and it gives you a comparison point without giving up the relationship you already have with the lender.
The citable fact: a licensed broker can review a private lender’s term sheet at any point before you sign, even on a deal you found entirely on your own.
Where should you look next?
This question connects to a few others worth reading before you decide how to proceed.
- How to check a mortgage broker’s licence
- How to compare private mortgage offers
- Why your bank never mentioned private lending
The full set lives on the Ask a Broker hub.
Frequently asked questions
Is it legal to get a mortgage directly from a private lender in Canada?
Yes. No law in Ontario or Alberta requires a borrower to go through a licensed mortgage broker. You can deal directly with a private lender, provided the lender itself is operating within the law in your province.
Do I need a broker to borrow from a family member?
No. A private loan from a family member is one of the clearest cases where going direct makes sense, since the relationship itself limits much of the risk a broker would otherwise manage. Get the terms in writing regardless of who the lender is.
What is a vendor take-back mortgage, and do I need a broker for one?
A vendor take-back mortgage is when the seller of a property finances part of the purchase price instead of a traditional lender. You do not need a broker to arrange one, though independent legal advice is still worth getting since you are signing a mortgage contract either way.
Will a private lender check my credit?
Most private lenders review credit, but they exist specifically to serve borrowers who do not qualify with a bank, often because of a lower score. Insured mortgages require a minimum score of 600 for at least one borrower; alternative and private lenders remain an option below that, usually with a fee that must be disclosed in writing.
What happens if a private lender does not disclose fees in writing?
If no broker or brokerage is involved, there may be no licensed party with a legal obligation to give you that disclosure in the first place. That is exactly the protection you give up by going fully direct, so confirm every fee in writing yourself before you sign.
Can I ask a broker to review a private deal I found myself?
Yes. A licensed broker can review a term sheet you already have, tell you how it compares with the rest of the market, and flag anything unusual before you sign. Bringing a broker in partway through costs you nothing to ask about.
Is the chat on this page an AI bot?
No. Chat on pekoe.ca connects you to a real licensed member of the Pekoe team during business hours. Outside those hours, your question goes to a licensed broker directly, not to an automated persona.
What is the difference between FSRA and RECA?
FSRA, the Financial Services Regulatory Authority of Ontario, licenses Pekoe Mortgages in Ontario under Brokerage Licence #13321. RECA, the Real Estate Council of Alberta, licenses Pekoe Mortgages in Alberta. Neither regulator has authority over a private lender who is not licensed as a broker or brokerage.
Do private lenders use the same mortgage documents as a bank?
The mortgage itself is registered on title the same way regardless of lender, but the commitment terms, fees, and conditions are set by that individual lender. Read every document carefully, since a private lender’s paperwork is not standardised the way a bank’s is.
Should I get independent legal advice on a direct private deal?
Yes. A lawyer who is not connected to the lender can confirm what is actually being registered against your property and explain the terms before you sign. This applies whether the deal came through a broker or you arranged it entirely yourself.
Can I switch to a broker if my direct deal falls through?
Yes. Nothing about approaching a lender directly first prevents you from working with a licensed broker afterward. Many borrowers try the direct route, then bring in a broker once they want a wider comparison.
Are private mortgage rates always higher than a bank’s?
Private and alternative lending generally prices for higher risk than a prime bank mortgage, since it often serves borrowers or properties that do not fit standard lending criteria. Current pricing changes daily and is not quoted here, so check pekoe.ca/rates or ask a broker directly for what applies to your file.
Found a private deal yourself? Get a second opinion before you sign.
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