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Having trouble getting approved for a mortgage through a traditional bank? Whether you're just starting out, buying an investment property, or facing credit issues, private mortgage lenders in Regina may offer the financial flexibility you're looking for.
With a population nearing 240,000 and a strong base in government, agriculture, and resource industries, Regina presents a variety of real estate opportunities—from character homes in Cathedral to new builds in Harbour Landing. For buyers who don’t meet conventional lending requirements, private financing is often a practical solution.
Unlike banks, which typically require a high credit score and documented income, private lenders in Regina focus on the property’s market value and how much equity is available. Some lenders, including Saskatchewan-based private lending groups, follow an asset-based model—approving loans even when income or credit is less than ideal.
Private mortgages tend to be short-term with higher interest rates, but they offer fast approvals and more flexible conditions. These can be helpful for time-sensitive purchases, refinancing situations, or borrowers recovering from financial setbacks.
In this guide, you’ll learn how private mortgages work in Regina, who they help, what the terms look like, and how rent-to-own options can offer a backup plan for those not quite ready to buy.
Key takeaways:
- Private mortgages in Regina are an alternative for buyers who don’t qualify with traditional lenders.
- Common among self-employed borrowers, credit-repair clients, and property investors.
- Faster approval and flexible terms make them ideal for urgent or complex situations.
- Rent-to-own programs give buyers another way to work toward homeownership while living in the home they want.
What is a private mortgage and how does it work?
A private mortgage is a short-term loan offered by non-traditional lenders—such as individual investors, mortgage investment corporations, or small lending groups. These lenders step in when banks say no, offering funding based on the value of the property instead of strict income or credit guidelines.
Private mortgage vs traditional bank mortgage
Private lenders evaluate risk differently than banks:
- Banks usually require high credit scores (680+), verified employment, and low debt ratios. They offer lower interest rates and long repayment terms—often 25 or 30 years.
- Private lenders are more concerned with the asset than the applicant. They focus on home equity and the loan-to-value ratio (LTV), making them a strong option for borrowers who are self-employed, recently separated, credit-challenged, or looking to move quickly.
While interest rates from private lenders tend to be higher (8% to 15%), the tradeoff is flexibility and speed.
Who needs a private mortgage in Regina?
Private mortgage financing is a fit for people who don’t check all the boxes for a bank loan. In Regina, this can include:
- Homeowners under financial pressure: If you're facing foreclosure, a lien, or tax arrears, private financing can provide short-term breathing room to restructure or sell on your timeline.
- Borrowers with credit struggles: If you've dealt with collections, missed payments, or past bankruptcy, private lenders and high-risk mortgages can still work with you—especially if you have 20%+ equity in a property in areas like Lakeview or Glencairn.
- Relocating to Saskatchewan: Moving from another province or from rural Saskatchewan? A private mortgage can make it easier to secure housing while waiting on a job start date or other documentation.
- Real estate investors: Investors flipping homes or adding to a portfolio in neighbourhoods like Cathedral or River Heights often use private lenders to move fast on opportunities that banks can't process in time.
- Newcomers to Canada: Without an established Canadian credit history, it can take years to qualify with a bank. Private lenders, as well as newcomer mortgages, help bridge the gap for newcomers settling in Regina.
- Small business owners and contractors: Self-employed workers often face irregular income or limited documentation, especially if working seasonally in agriculture or trades. Private lenders and self-employed mortgages focus on the equity you bring—not your T4.
Is a private mortgage right for you?
Here’s a quick summary to help you decide if private lender mortgages could help you based on your situation:
Interest rates and loan terms for private mortgages in Regina
Private mortgage terms are structured for flexibility, not longevity. They’re built for borrowers who need fast approval—often as a stepping stone toward refinancing with a bank later.
What rates to expect for private mortgages
- Private mortgage rates in Regina usually range from 8% to 12%, depending on your credit, equity, and loan size.
- For comparison, bank mortgage rates generally range from 3% to 5%.
- Higher-risk borrowers or properties outside the city core may see rates closer to 14–15%.
Factors affecting your private mortgage interest rate
- Credit score – Lower credit can raise the rate.
- LTV ratio – Borrowing more than 75% of the property’s value can increase cost.
- Property type – Rural homes or non-standard builds may be viewed as higher risk.
Private mortgage term lengths and repayment options
Private mortgages often run from 6 months to 3 years—a shorter horizon compared to traditional 15- or 30-year loans. Most lenders offer interest-only payments, keeping your monthly expenses lower while you prepare for refinancing or a sale.
How to qualify for a private mortgage in Regina
Qualifying for a private mortgage in Regina is more straightforward than going through a bank, but lenders still need to see that the property is worth lending against.
What lenders look for
- Equity or down payment: You’ll usually need at least 20–25% equity in the home or a matching down payment for purchases.
- Loan-to-value ratio (LTV): Most lenders cap LTV at 80%—some may go higher but at steeper rates.
- Income verification (optional): Some lenders will ask for proof of income, but many are open to asset-based lending. This is useful for self-employed workers or those on non-traditional income.
What documents you’ll need
- Property appraisal or market value report
- Government-issued ID
- Credit report (lender reference only)
- Purchase agreement or ownership documents
Pros and cons of private mortgage lenders
Understanding the advantages and tradeoffs is essential when considering a private mortgage in Regina:
Advantages of private mortgage lenders
- Fast turnaround – Get approved and funded in days, not weeks.
- Flexible underwriting – Approval based on equity, not income or credit alone.
- Custom repayment terms – Many lenders offer interest-only or balloon payments.
Disadvantages of private mortgage lenders
- Higher interest rates – You’ll pay more than with a traditional lender.
- Shorter loan terms – Most range from 6 to 36 months.
- Larger equity/down payment – Often 20% or more is required.
- Risk of bad actors – Some lenders may charge hidden fees or enforce harsh penalties. Always read the fine print or work with a trusted broker.
How to find the best private mortgage lender in Regina
Not all private lenders are created equal—and finding the right one in Regina requires more than a quick Google search. Here’s how to make sure you’re working with someone trustworthy:
Tips for choosing a reliable lender
- Verify credentials and licensing: Ensure the lender is registered and legally allowed to operate in Saskatchewan. You can check with the Financial and Consumer Affairs Authority (FCAA) to confirm licensing.
- Read reviews and ask around: Look for client feedback on Google or local real estate forums. If you're working with a Realtor, ask who they've had good experiences with in Regina.
- Use a Regina mortgage broker: An experienced Regina-based broker can connect you with vetted private lenders, compare multiple offers, and help you avoid lenders with hidden fees or predatory practices.
- Be alert to red flags: Avoid lenders who:
- Ask for large upfront fees
- Rush you into signing
- Won’t clearly explain repayment terms
- Don't provide written agreements
Alternatives to private mortgages in Regina
If a private mortgage feels like a stretch—or you’re looking for a lower-cost solution—Regina offers a few alternative financing options worth exploring:
1. Credit unions
Local credit unions like Conexus Credit Union and Affinity Credit Union often have more flexibility than major banks. They may offer mortgages to clients with modest credit or unconventional income sources, and perks like:
- Lump-sum prepayment without penalty
- Variable-rate options with flexible terms
2. B-lenders (alternative lenders)
These non-bank lenders offer more relaxed lending criteria than traditional banks but aren’t as costly as private lenders. They’re a great option for borrowers with:
- Low credit scores
- Recent debt settlements
- Self-employment without formal income verification
Mortgage brokers in Regina frequently work with B-lenders to help clients bridge the gap until they can refinance through a traditional lender.
3. Government homebuyer programs
You might qualify for:
- The First-Time Home Buyer Incentive (FTHBI), a federal shared equity program
- CMHC-insured mortgages with low down payments
- Affordable housing support through local municipal or provincial programs, especially for newcomers, Indigenous buyers, or low-income households
4. Rent to own
Rent to own in Regina gives you the option to live in a home now and buy it later, with a portion of your rent going toward your future down payment. Get approved in under 24 hours with Requity Homes.
Tip: Calculate how much you can afford with rent-to-own using this free rent-to-own affordability calculator.
Rent-to-own as an alternative to private mortgage lenders in Regina
Simply put, rent-to-own programs let you move into a home now while you build toward ownership. It’s a good fit for buyers who want time to:
- Improve their credit
- Save a bigger down payment
- Establish income or residency before applying for a mortgage
Who rent-to-own works best for:
- First-time homebuyers
- Credit-rebuilding borrowers
- Self-employed individuals
- Newcomers to Saskatchewan
Benefits over private mortgages:
- No need to qualify for a mortgage upfront
- Lock in a home while you work toward financing
- Try the house and neighbourhood before committing
Read more about rent to own homes vs mortgages
Rent-to-own in Regina with Requity Homes
Rent-to-own homes in Regina offer a flexible way to achieve homeownership—especially if you're not quite mortgage-ready. With Requity Homes, you can get started with as little as 2% down and work toward owning your home over a three-year period.
Why choose rent-to-own?
- Low upfront cost – Get started with just a 2% down payment
- Move in right away – Live in your future home while you build toward ownership
- Step-by-step support – Receive guidance throughout the entire program
How it works
- Pick a home – Search for rent-to-own homes in Regina or request one on the market
- Apply online – Quick and simple application through Requity Homes
- Move in – Live in your selected home while a portion of your rent goes toward your future down payment
Ready to apply? Get pre-qualified with Requity Homes - it's easy, free and won't impact your credit.
