Quick answer: A private mortgage lender in Surrey lends mainly on your home's equity rather than your income or credit score. Private lenders suit self employed borrowers, people with credit problems or CRA debt, and anyone who needs a bridge or a fast closing. Most loans are interest only for about 12 months, with a lender fee, often a broker fee, and legal and appraisal costs. Compare the APR, not just the rate, and have an exit plan to a B lender or bank before you sign.
My office is on 137 Street in Newton, and private lending is a regular part of my work with Surrey families and business owners. Used well, it buys you time. Used without a plan, it gets expensive quickly.
Who does a private mortgage lender in Surrey suit?
- Self employed borrowers whose tax returns show less income than the business really earns, often trades, trucking and small business owners.
- Credit problems such as missed payments, collections or a recent consumer proposal.
- CRA debt. Many lenders want tax arrears paid at closing, and a private loan can do that when a bank will not.
- Bridge needs, such as buying your next home before the current one sells. See our bridge loan guide.
- Fast closings, such as a subject removal deadline, an estate, a separation buyout or a renewal your lender declined.
Before I place anything privately, I check whether a B lender can do the deal in time. If one can, it is almost always cheaper.
How do private lenders in Surrey lend on equity?
Private lenders start with loan to value: the loan, plus any mortgage ahead of it, as a share of the appraised value. In Surrey and the rest of Metro Vancouver, they commonly lend up to roughly 65% to 75% of value on a first mortgage, and up to about 80% combined when they lend behind an existing mortgage. Smaller towns, acreages and unusual properties usually get less.
The property matters as much as the number. A detached home with a suite in Newton, Fleetwood or Cloverdale is a familiar file for most lenders. A townhouse or condo in a strata, common in Clayton, Grandview Heights and City Centre, means the lender also reviews the strata documents and any special levies. If you already have a low rate on your first mortgage, a second mortgage often costs less overall than replacing it.
What does a private mortgage in Surrey really cost?
This example is for illustration only; your rate, fees and approval depend on your full application. A Fleetwood house with a suite appraises at $1,200,000, and a self employed owner needs a $720,000 private first mortgage, which is 60% of value.
| Item | Amount |
|---|---|
| Loan at an illustrative 8.99% interest only, 12 month term, APR about 12% | $720,000 |
| Monthly interest only payment | $5,394 |
| Lender fee (1.5%) | $10,800 |
| Broker fee (1%) | $7,200 |
| Legal costs | $2,000 |
| Appraisal | $600 |
| Total fees | $20,600 |
| Interest for 12 months | $64,728 |
| Total cost for the term | $85,328 |
The total cost of $85,328 is about 11.9% of the loan for one year, and because the fees come off the advance, the APR on your disclosure works out to about 12%. If all the fees are deducted at funding, about $699,400 reaches your lawyer, but you pay interest on the full $720,000. Ask about renewal and discharge fees too: a renewal fee and a higher rate at month 12 can turn a reasonable loan into an expensive one.
How does a broker compare private lenders?
Private lenders range from individual investors to mortgage investment corporations, and their terms differ more than their headline rates suggest. When I compare offers for a Surrey file, I look at:
- the rate and lender fee together, shown as an APR over the actual term;
- whether the mortgage is open, and after how many months;
- renewal terms, fees and any automatic rate increase;
- prepaid interest held back from the advance;
- appraisal requirements and how fast the lender can fund.
You see every option side by side, in writing, before you choose. More on how this market works is in our guide to private lenders in BC.
What is your exit plan from a private mortgage?
An interest only loan does not shrink, so the plan to pay it out matters more than the rate. A good exit plan names the lender you are aiming for and what has to change first:
- Fix the reason you needed private money: file your taxes, clear CRA, or make 12 months of on time payments.
- Keep equity room. Federally regulated lenders cap refinances at 80% of the home's value, so the new loan must fit under that line.
- Review the file around month eight or nine, so the B lender or bank refinance is ready before the term ends.
- If the private loan cleared cards or tax debt, roll the payout into one lower payment. Our debt consolidation guide shows how.
Selling is also an exit, as long as you choose it early and on your own timeline.
What disclosure do BCFSA and BC law require?
Mortgage brokers in BC are licensed by the BC Financial Services Authority, and your broker must give you written disclosure of the costs, the risks and any fee you pay the broker before you sign. BC's consumer protection law also requires a cost of credit disclosure on a mortgage loan to a consumer, including the APR and the total cost of credit, at least 2 business days before you sign or make a payment. A brokerage fee must be counted in that APR. The Criminal Code caps most consumer loans at 35% APR. Never pay a large fee before you have a written commitment, and read the renewal clause before you sign.
What are the key takeaways?
- Private lenders in Surrey lend on equity, commonly up to about 75% on a first mortgage and about 80% combined.
- They suit self employed borrowers, credit problems, CRA debt, bridges and fast closings.
- Judge the cost by the APR over the real term, including every fee.
- Write the exit plan to a B lender or bank before you sign.
Need a private mortgage in Surrey, or want a second opinion on an offer? Book an appointment and I will compare B and private options side by side, with the APR and every fee in writing.
What other questions do readers ask?
What credit score do private lenders in Surrey need?
Most have no set minimum. They look first at your equity, the property and your exit plan. They still pull your credit, and a stronger file can mean a better rate or a lower fee.
How fast can a private mortgage close in Surrey?
Often within one to two weeks once the appraisal and documents are in. Tight deadlines are possible, but a rushed file leaves less room to compare lenders.
Can I pay off a private mortgage early?
It depends on the terms. Some are open after a few months, others charge interest for the rest of the term or a set number of months. Ask before you sign, because the whole point is to leave early.
Are private lenders regulated in BC?
The broker who arranges your mortgage must be licensed by the BC Financial Services Authority. BC's consumer protection law requires cost of credit disclosure, including the APR, on mortgage loans to consumers, and the Criminal Code caps most consumer loans at 35% APR.
Where do these numbers come from?
- BC Business Practices and Consumer Protection Act, Part 5: credit agreements and cost of credit disclosure
- Criminal Code, section 347 (criminal rate of interest)
- Financial Consumer Agency of Canada: borrowing on your home equity
Published November 6, 2026. This article is general information, not personal financial advice. Rates and programs change, and every approval depends on your full application. Asim Ali is a licensed mortgage broker with Dominion Lending Centres A.I.M.I. Collective Mortgage Group.