Private mortgage pricing

Private Mortgage Cost Calculator Ontario

Calculate the real cost of a private mortgage, including payment structure, lender and broker fees, legal and appraisal costs, net advance, term interest, and maturity payout.

Interest-only and amortizing modesLender and broker feesNet advance after deductionsMaturity payout

Calculation inputs

See the full private-mortgage cost

Model the payment, lender and broker fees, deductions from advance, term interest, maturity payout, and a simple annualized cost.

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months
Fees, reserves, and advance deductions
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How the calculation works

Understand the formula before relying on the result

Interest and payment

Interest-only mode divides the entered annual rate into monthly interest periods. Amortizing mode calculates a level monthly payment over the selected amortization.

Percentage fees

Lender and broker fees are calculated as percentages of the registered mortgage amount, while legal, appraisal, administration, and discharge costs are entered separately.

Net advance

When fees are deducted from proceeds, the calculator subtracts upfront fees and any entered prepaid-interest reserve from the registered amount to estimate usable cash.

Total borrowing cost

Modeled term interest and entered fees are combined. The simple annualized planning ratio divides cost by net advance and scales it to a 12-month year.

Interpret the result

Registered amount is not cash received

A borrower may sign for a larger mortgage than the funds available after fees, reserves, arrears, taxes, or payouts are deducted.

Payment can understate cost

An interest-only payment may appear manageable while principal remains fully due at maturity and significant fees reduce proceeds.

Maturity payout matters

The balance and discharge fee shown at maturity should be matched to a credible refinance, sale, asset liquidation, or other exit source.

Annualized cost is comparative

The ratio helps compare structures but is not a substitute for the lender's legal cost-of-borrowing disclosure or commitment terms.

Common mistakes

  • Comparing only the interest rate and ignoring percentage fees.
  • Assuming the registered amount equals cash available.
  • Treating a prepaid interest reserve as free money rather than retained cash.
  • Ignoring renewal, extension, default, and enforcement fees.
  • Entering a maturity date without a documented exit plan.

What lenders review

  • Property value, marketability, location, and mortgage position.
  • Loan-to-value and total secured debt.
  • Purpose and use of funds.
  • Interest servicing capacity and payment history.
  • Exit strategy, timing, documentation, and fallback plan.

Planning tips

  • Ask for a complete statement of all fees and deductions.
  • Calculate net proceeds before committing to payouts or closing costs.
  • Preserve a contingency for legal adjustments and delayed discharge.
  • Compare the private structure with a second mortgage, HELOC, B lender, or sale.
  • Begin the exit process months before maturity, not after the renewal notice.

Connected HopeWell knowledge

Connect the private mortgage cost calculator to the mortgage decision

Use the result alongside HopeWell's guide chapters, glossary definitions, real underwriting case studies, service pages, and related calculators.

Calculation pathway

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Continue into qualification, purchase costs, equity, refinancing, HELOC planning, and mortgage comparison using the connected calculators below.

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Frequently asked questions

Questions about this calculation

How are private mortgage fees calculated?

Many commitments include percentage lender or broker fees plus legal, appraisal, administration, inspection, discharge, renewal, or other charges. The exact basis and timing must be read from the commitment.

Why is the net advance lower than the mortgage amount?

Fees, prepaid interest, arrears, taxes, existing mortgages, and other required payouts may be deducted from proceeds before the borrower receives funds.

Does an interest-only payment reduce principal?

No. Unless extra principal is paid, the full mortgage balance generally remains due at maturity.

Is the annualized cost the legal APR?

No. It is a simplified planning ratio and does not replace the lender's disclosure or legal advice.

Can every private mortgage be renewed?

No. Renewal is discretionary and may involve new underwriting, fees, a new rate, updated valuation, or a required payout.