Private Lending on Vancouver Island
Fast, Flexible Capital When Conventional Lenders Say No.
If a bank or institutional lender has turned down your file, or if your timeline does not allow for the weeks a conventional approval typically takes, private lending may be the solution. I am Kevin Blue, and for 25 years my entire mortgage career has been focused on private lending, construction, and commercial financing. Based in Parksville, I arrange private mortgage financing for clients across Vancouver Island and BC.
Private lending uses capital from private investors and mortgage investment corporations rather than banks or credit unions. It is secured primarily against the equity in the property rather than your income or credit profile, which means it can work for situations that conventional lenders will not touch.
When Private Lending Makes Sense
Private lending is the right tool in specific situations: when you need to close quickly and a conventional approval timeline does not work, when your credit or income documentation does not meet institutional criteria, when the property type is non-standard, when you need a short-term bridge between transactions, or when a construction or development project needs financing that a bank will not provide at this stage.
I treat private lending as a tool with a purpose, not a default. For every client I assess whether private lending is genuinely the right fit or whether an institutional alternative would serve them better.
How Private Lending Works on Vancouver Island
Private mortgage rates on Vancouver Island are typically higher than conventional rates, generally in the 7% to 12% range depending on the loan-to-value ratio and the specifics of the deal. Most private lenders require a loan-to-value below 75%, meaning you need meaningful equity in the property. Terms are typically short — six months to two years — designed as a bridge to a longer-term solution.
Approval and funding timelines are dramatically faster than institutional lending. Where a bank may take four to six weeks, a private lending deal can often close in days when the situation requires it.
How fast can a private mortgage close on Vancouver Island?
In genuinely time-sensitive situations, private lending deals can close in days rather than the weeks a conventional mortgage requires. The exact timeline depends on the complexity of the deal and how quickly documentation and appraisals can be completed.
What loan-to-value do I need for private lending?
Most private lenders require a loan-to-value ratio below 75%, meaning you need at least 25% equity in the property. Some deals can work with less equity depending on the specifics.
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Is private lending only for people with bad credit?
No. Private lending is often used by borrowers with excellent credit who simply need speed or flexibility that institutional lenders cannot provide — bridge financing, time-sensitive acquisitions, or construction draws are common examples.
How do I get started?
Book a free call. I will ask the right questions, review your situation, and give you a clear picture of your options. No forms to fill out first, no pressure to proceed until you are ready.
