Borrower-side, lender-side, or both. Khan Law handles loan review, ILA, title and priority search, and Teranet registration with full compliance under Ontario's Mortgages Act and FSRA brokerage rules.
Private mortgages aren't a fallback — they're a tool. Four borrower profiles cover most of what we close. Each comes with its own risk, exit strategy, and documentation pattern.
Buying before selling — short-term private 1st mortgage covers the gap until the existing home closes.
Banks need 2 years of T1 generals. Private lenders look at the property and equity, not your income tax return.
Bruised credit (consumer proposal, recent late payments) shut out of bank lending. Private lenders accept the risk for a fee.
Take equity from your principal residence for renovation, business, investment, or debt consolidation. Sits behind your bank 1st mortgage.
Private lenders or MICs needing lender-side counsel? See lender-side pricing. Both sides on one file? Dual representation available with conflict waiver.
We act for borrowers AND private lenders, so we know exactly what each party needs to feel protected. The result: fewer back-and-forth, faster funding.
If you're getting Independent Legal Advice, you'll leave the meeting actually understanding the loan — interest rate, term, default, power of sale — not just signing the certificate.
5–10 day standard close. 48–72 hour urgent close possible. We never skip title search or priority review — but we also never sit on a file.
Private lending is sophisticated — fast, flexible, but with risks bank lending doesn't carry. Whether you're borrower or lender, these are the patterns that catch people off guard.
Most common Ontario default remedy. After Notice of Sale, borrower has 35 days to cure default. Property can be sold; surplus goes to borrower. Foreclosure is rare but available. Borrowers should have an exit plan before signing.
Private rates reflect higher risk and faster funding. Plus 1–3% lender fees deducted from advance. Plus broker fees. Total cost of borrowing can be 12–18% effective — short-term tool, not long-term solution.
Private mortgages aren't 5-year fixed-rate products. They're 1–2 year bridges to bank refi, sale, or estate event. Plan the exit before signing — renewal isn't guaranteed and renewal fees can be significant.
2nd mortgages get paid AFTER 1st mortgage on default sale. If property value falls below 1st mortgage balance, 2nd lender can lose principal. Lenders demand higher rates and tighter LTVs as a result.
Borrowers signing private mortgages where the lender's lawyer is also acting need Independent Legal Advice (ILA) certificate. $399 standalone at Khan Law. Don't skip it — without ILA, the loan is challengeable.
Private mortgages registered through a brokerage trigger Mortgage Brokerages, Lenders and Administrators Act, 2006 disclosure requirements. Brokerage must provide cost-of-borrowing and lender-disclosure forms. Khan Law confirms compliance for both sides.
Whether you're borrowing or lending, the same flat fee covers every legal step required to register a private mortgage on title.
Tell us the basic shape of the loan and we'll show your flat fee — including ILA, 2nd-position handling, and large-loan adjustments.
Excludes government disbursements (~$300 typical: charge registration + software). Lender admin fees, broker fees, and prepaid interest are paid out of mortgage advance, not legal fee. Khan Law confirms exact figures in your written quote.
5–10 business days standard. 48–72 hours possible when ILA already in hand.
Send the term sheet, broker contact, ID. We open file in 24 hours and request title search.
Title and priority search. 1st-mortgage lender consent (for 2nd). Insurance binder reviewed.
Borrower receives Independent Legal Advice (separate file). Charge document signed.
Funds advance to trust, broker fees deducted, net proceeds wired to borrower.
Charge registered on Teranet, solicitor's report issued to lender.
Same documents we'd request for a bank file, plus the private-lender-specific items.
Borrower & lender items both listed. Khan Law tells you which apply to your file.
Private mortgages have their own statutory regime in Ontario — we satisfy every requirement, every file.
We're a private lender funding ~30 deals a year through Khan Law. They've never missed a closing date, the solicitor's report is always thorough, and they handle ILA without it becoming theatre.
"Bridge financing on a tight 5-day window — Khan Law funded on day 4. Saved my purchase."
"Self-employed, banks said no. Got a private 1st mortgage at 8.5%. Two years later, refi'd to a bank at prime. Khan Law handled both ends."
"ILA appointment was actually informative. Hassan walked me through default, power of sale, every fee. I signed knowing exactly what I was signing."
Private mortgages get a bad reputation. They shouldn't — when properly structured, they're a sophisticated tool for the right borrower. The problem is most people sign them without understanding what default looks like, what 35 days from a Notice of Sale means, what the broker fee is actually for.
I lead Khan Law's private mortgage practice because I think both sides deserve clarity. Borrowers get plain-English ILA. Lenders get a thorough solicitor's report. Brokers get fast, predictable funding.
Talk to me before you sign. The conversation costs nothing, and you'll walk away with a clear view of what you're getting into — whether it's the right move or not.
Private files registered in every Ontario LRO. Headquartered in Toronto.
Don't see your city? Message us — every Ontario LRO covered.
A meaningful portion of our private-mortgage practice is institutional — Mortgage Investment Corporations, syndicated lenders, and high-volume brokerages. Same flat-fee discipline, scaled to volume.
Federally regulated MIC structures with multiple investors. Khan Law has acted for several Ontario MICs across hundreds of files. Standard solicitor's report and registration package.
Multiple investors funding one mortgage through a trustee structure. Heightened FSRA disclosure rules apply (post-2019 reforms). Coordinated with brokerage and tax counsel.
Mortgage brokerages funding 50+ private files/year benefit from volume retainer pricing and dedicated file-management team. Standardized intake, predictable turnaround, weekly reporting.
Retail, industrial, multi-residential commercial properties under private financing. Different documentation (commercial mortgage charge, environmental searches, leases review). Quoted individually.
High-volume MIC and brokerage clients can negotiate volume retainer pricing with flat per-file fees, dedicated paralegal team, and standardized turnaround SLAs. Commercial private mortgages and syndicated structures quoted individually.
Conflict waivers required for dual representation. ILA available standalone.
2nd mortgage adds $250. Loans over $1M add $350. Loans over $1.5M, syndicated mortgages, and commercial private loans are quoted individually.
A private mortgage is a loan secured by real estate where the lender is not a federally regulated bank or credit union — typically a private individual, MIC, or syndicate. Used when borrowers don't qualify for bank lending, need bridge financing, or want a short-term equity loan.
Private lenders accept higher risk (less stringent qualification, faster funding, more flexible terms), so they charge higher rates — typically 8%–13% plus 1%–3% lender fees. The trade-off is speed and flexibility versus cost.
ILA means a lawyer separate from the lender's lawyer reviews the loan terms and certifies you understood and consented voluntarily. Most private mortgages require ILA for the borrower, especially when the lender's lawyer is also acting on the file. Khan Law provides ILA at $399 + HST as a standalone service.
Yes, with a written conflict-of-interest waiver from both parties and only where the loan terms are fully disclosed and not contested. Khan Law represents both sides on straightforward private mortgage files for $1,999 + HST. For complex or contested terms, separate counsel is required.
Position refers to priority on title. A 1st mortgage is paid first if the property sells or is foreclosed; a 2nd ranks behind it. 2nd mortgages carry higher rates because of higher risk to the lender. Khan Law confirms position via title search before registration.
Most private lenders cap loan-to-value at 75%–85% for 1st mortgages and 70%–80% combined LTV for 2nd mortgages. The maximum depends on property type, location, and the borrower's exit strategy.
The lender can pursue power of sale (most common in Ontario) after the borrower has 35 days from a Notice of Sale to cure the default. The property is sold; sale proceeds pay off the mortgage(s) in priority. Any surplus goes to the borrower. Foreclosure is rare in Ontario.
Private mortgages make sense for: bridge financing between sale and purchase; borrowers rebuilding credit; self-employed clients without provable income; equity loans against principal residence; sophisticated short-term real-estate strategies. They are not a long-term solution.
Often 5–10 business days from term sheet to fund — much faster than bank closings. Khan Law has closed urgent files in 48–72 hours when ILA was already in place.
Yes. Private mortgages registered through a brokerage are regulated by FSRA under Ontario's Mortgage Brokerages, Lenders and Administrators Act, 2006. Lenders also fall under the Mortgages Act. Khan Law confirms compliance for both sides at retainer.
APS review, FTHB rebate, title insurance, registration.
From $999 →Mortgage discharge, Statement of Adjustments, same-day net-proceeds wire.
From $999 →Register a new charge, discharge the old mortgage.
From $799 →Spousal, family, trust transfers with LTT exemption analysis.
From $799 →Whether you're borrowing, lending, or brokering — talk to us before you sign.
Same business-day response.
