Private mortgages in Alberta are real tools. They are also easy to misuse. When a bank declines a purchase in Mill Woods, a refinance in St. Albert, or a bridge between two Edmonton closings, a private lender quote can look like the only door left. Sometimes it is. Often it is a short-term bridge that should come with an exit plan, a clear cost, and a mortgage broker who will say when you should wait instead.
Jason Scott is an Edmonton mortgage broker with TMG The Mortgage Group at 10525 170 Street NW Unit 107, Edmonton, AB T5P 4W2. He is not a bank. He is not a U.S. mortgage lender. He compares A-lender, B-lender, and private options for Edmonton and Alberta clients, including households who already landed on edmontonprivatemortgages.com after a decline. The job on a private mortgage call is education first: why the bank said no, what a private charge costs, how long you should need it, and what gets you back to an insured or conventional mortgage.
What a private mortgage is (and is not) in Alberta
A private mortgage is financing from an individual investor, a mortgage investment corporation, or a private lending shop rather than a major bank or credit union. In Alberta, these loans are often shorter term, priced higher than prime, and underwritten more on equity and exit than on a perfect credit score. They can help with:
- A purchase when income is complex, credit is bruised, or the property type is awkward for an A lender
- A bridge between selling one home and buying the next in the YEG market
- A refinance to clear high-interest debt while you repair credit or stabilize income
- An investment or construction scenario that needs speed more than the lowest rate
A private mortgage is not free money. Interest, lender fees, broker fees, legal fees, and renewal pressure all stack. If nobody can explain the all-in cost and the exit in plain numbers, pause. Jason's second-opinion work exists because many borrowers only see the first private quote that showed up in an inbox.
Canada uses mortgage broker language. CMHC and other default insurers matter for high-ratio purchases. Private loans are usually unconventional relative to insured bank mortgages. Do not mix U.S. product labels (FHA, USDA, or U.S. license numbers) into an Alberta mortgage conversation. Jason will talk GDS/TDS, loan-to-value, and Alberta land titles practice, not American product codes.
When private makes sense versus when it does not
Private can be the right tool when the alternative is losing a home you can afford after a short repair period, or when a timed bridge is cheaper than breaking a purchase contract. It is the wrong tool when you are being sold speed without an exit, when equity is too thin to survive a soft appraisal, or when a B lender would clear you with slightly more documentation and a lower cost.
Jason typically walks Edmonton clients through this order:
- Can an A lender still work with a different structure, co-borrower, or gift?
- Is a B lender the intermediate step with a clearer path back to A?
- If private is required, what term, what LTV, what fees, and what exit date are realistic?
- What must improve in the next 6 to 24 months: credit, income documentation, debt ratios, or property condition?
Renewals matter. Some private loans are easy to extend. Others reprice sharply. If your plan is "we will figure it out later," that is not a plan. Build the exit into the first conversation: refinance to an A or B mortgage after tax returns land, after a consumer proposal seasons, after the condo docs clear, or after the sale of the other property closes.
How an Edmonton second-opinion call with Jason usually goes
Bring the decline reasons if you have them, a recent mortgage statement or purchase contract, and an honest picture of credit and income. Jason will not pretend a private mortgage is a badge of honor. He will say whether the quote you already have is market-reasonable for Alberta, whether the lender is appropriate for the risk, and whether waiting 30 to 90 days changes the product mix.
He also works reverse mortgage conversations and standard purchase, refinance, and renewal strategies through edmontonmortgagebroker.com. Private is one lane in a larger broker practice. Households who only need a rate hold on a clean W2-equivalent income path may never need private at all. Investors with thin equity might. First-time buyers who were declined for debt ratios might need budgeting and a B lender, not an expensive first charge.
TMG The Mortgage Group is Jason's brokerage home. Contact the office through the site contact page or apply online when you are ready for a structured review. This article is general information for Alberta borrowers. It is not a commitment to arrange credit, not a rate offer, and not legal advice.
Questions Edmonton borrowers ask about private mortgages
Is a private mortgage the same as a hard money loan?
People use the labels interchangeably. In practice, Alberta private mortgages vary widely by lender, term, and fee structure. Ask for the full cost and the exit, not just the interest rate headline.
Will a private mortgage ruin my chance to get a bank mortgage later?
Not if you exit cleanly and on time. Missed payments, maxed credit, and repeated short renewals make the next A-lender conversation harder. Plan the exit on day one.
Can Jason help if I already have a private quote?
Yes. Second opinions are a core reason borrowers contact him. Bring the commitment letter or term sheet.
Do you serve only Edmonton?
Jason's practice is centered on Edmonton and Alberta clients, with Calgary as a secondary market. Ask whether your deal fits his current lender panel.
Should I use private for a simple insured purchase?
Usually no. If you qualify for an insured or conventional A-lender mortgage, that is typically the cleaner path. Private is for friction cases, not for vanity speed.
Next step
If a bank said no, or a private quote feels rushed, get a second opinion from Jason Scott at TMG The Mortgage Group before you sign. Start at edmontonmortgagebroker.com/contact or review private-mortgage education at edmontonprivatemortgages.com.
Jason Scott, TMG The Mortgage Group, 10525 170 Street NW Unit 107, Edmonton, AB T5P 4W2. Alberta mortgage broker. Educational content only. Not a commitment to arrange mortgage financing. Rates, fees, and approvals depend on credit, income, property, and lender guidelines.