A majority of the mortgages in Canada are held either by the 4 major banks i.e. Royal Bank of Canada (RBC), Scotia Bank, Toronto Dominion (TD) or Canadian Imperial Bank of Commerce (CIBC) or one of the leading a financial institutions.
Most Canadians have heard of Private mortgages but have little knowledge or concept of what they are or how they work. Private mortgages can be an alternative source of financing for borrowers and are usually a high return investment opportunity for investors. Most banks and institutional lenders typically need to satisfy strict lending criteria and are not willing to budge too far from the norm. As a result they and will shy away from such transactions. private lenders on the other hand are willing to fund such transactions based on the equity and location of the home. Effectively they come in where the major banks or institutional lenders are not willing to go.