Case Study · Commercial / Private

Approval Secured for $7.5M in Estate-Related CRA Financing

A Metro Vancouver family inherited roughly $30 million of commercial and residential property through probate and a share transfer, along with about $7 million of estate-related CRA liabilities. Their own bank and other major lenders declined. We structured a multi-layered private mortgage against the estate's real estate and secured lender approval for $7.5 million.

Approved in 2026 · Published July 18, 2026

Commercial
Private
Commercial equity take-out
Probate
Estate
CRA debt

Approved: $7.5 million
Inherited estate: roughly $30 million
Estate CRA liabilities: about $7 million
Proposed rate: 6.75% in 2026

The Situation

In Metro Vancouver, a family inherited roughly $30 million in real estate through probate and a share transfer, a mix of commercial and residential property, most of the value commercial. With it came about $7 million of estate-related CRA liabilities, and little idea where to begin.

The Challenge

Their own bank, then a couple of other major lenders, looked at the file and said no. Each saw the tax liabilities and an illiquid estate, but none would lend against the equity sitting inside it.

The Solution

We structured a multi-layered private mortgage against the commercial and residential real estate, a commercial equity take-out that draws on the value the banks would not lend against, with the proceeds directed to the CRA liabilities. A private lender approved the $7.5 million mortgage at a proposed rate of 6.75% in 2026, with a 1% lender fee and a 0.9% broker fee.

The Outcome

Approval secured for $7.5 million. The financial analysis prepared for this file compared the existing liabilities, at an estimated tax-adjusted effective cost of about 14%, with about 9.5% for the approved financing once its costs were included. That comparison belongs to this estate alone: 14% is not CRA's posted rate, 9.5% is not a standard APR, and another family's numbers would differ. The structure is built to give the family time to refinance into lower-cost lending once the pressure lifts.

Run the numbers

Mortgage APR Calculator

This file was judged on its all-in cost, not its rate. Run a private mortgage's rate and fees over the months you would actually keep it.

Open it full size →

The offer in front of you

Mortgage amount

Quoted rate

Private firsts commonly quote 7–10%; seconds 10–14%.

Payments

Term length12 mo

Lender fee

Typically 1–3% of the mortgage on firsts, more on seconds.

Broker fee

On private deals the broker fee is charged to you and disclosed in writing before you commit.

Legal + appraisal

Private deals usually have you pay both sets of legal fees.

Your real timeline

Months you'll actually need it12 mo

Be honest here — this number moves the true APR more than the rate does.

Compare the alternative

B-side 1-year rate

Desk rate for a 1-year fixed, B-side, today.

B-side lender fee

Assumes no broker fee and ~$1,500 legal/appraisal, 30-yr amortized — typical for a B-side 1-year fixed.

Your true cost, all-in

14.95%

TRUE APR, all-in

8.99%

The rate on the commitment

$94,500

What actually lands of the $100,000

The gap between the quoted rate and the true APR is the fees, spread over how long you actually keep the money.

Where the money goes over 12 months

Monthly payment: $749 (interest-only)
Interest paid: $8,990
Lender + broker fees: $3,000
Legal + appraisal: $2,500
Total cost of funds: $14,490
Cost per $100K per month: $1,208

Total cost over 12 months — private vs B-side placement

Placement gap: $7,182 over 12 months. That's what getting the file to a B lender instead is worth — when the file can be placed. Speed, CRA urgency, or a credit event sometimes make private the only lane; then the job is the exit plan.

Guardrails — shown, not hidden

If you exit at 6 months instead: true APR 20.66%
Fees don't shrink with time: Day-one fees over fewer months = higher APR
Watch the fine print for: Minimum-interest clauses (often 3 months), per-diem interest, holdbacks
If you'll need it 18+ months: A B-side or repair-first route usually wins

Private lending is a bridge, not a destination — priced fairly for speed and flexibility, expensive as a place to live. Before any commitment you must receive formal written cost-of-borrowing and broker-fee disclosure; this tool is shopping math, not that disclosure. We place private files with the exit written down before the entry.

What this calculator does that most don't

Solves the actual IRR of your cash flows — quoted rate, lender fee, broker fee, legal, renewal fees, and the month you actually exit — not 'rate plus fees' eyeballed
Shows the exit-early trap in numbers: the same day-one fees over 6 months instead of 12 pushes a quoted 8.99% past a 20% true APR
Prices the file against a B-side 1-year at today's desk rate, so the value of better placement is a dollar figure, not a claim
Honest by construction: set every fee to zero and the true APR equals the quoted rate — the gap you see IS the fees

Want a real plan, not just an estimate?

Send Ramin exactly what you just calculated — your scenario rides along automatically, so the first conversation starts at your numbers, not at zero.

or use the full contact form

Free personalized quote

Get your real mortgage approval amount

Calculators give estimates. We give exact numbers — based on your income, credit, and the lender most likely to say yes. Free, no obligation, same-day reply.

Get my free personalized quote

No credit pull · No spam · Reply within hours

Questions and answers

Questions about this file

Can you borrow against an inherited estate to pay its CRA debt?+

In this file, yes. A family inherited roughly $30 million of commercial and residential property through probate and a share transfer, with about $7 million of estate-related CRA liabilities. We structured a multi-layered private mortgage against the estate's real estate, with the proceeds directed to the CRA liabilities, and a private lender approved $7.5 million.

Why did the banks say no?+

Their own bank, then a couple of other major lenders, declined. Each saw the tax liabilities and an illiquid estate, and none would lend against the equity sitting inside it.

What is a commercial equity take-out?+

Borrowing against value already inside commercial property. Here it drew on the value the banks would not lend against, with the proceeds going to the CRA liabilities.

What did the approved financing cost?+

A proposed rate of 6.75% in 2026, with a 1% lender fee and a 0.9% broker fee. The analysis for this file put the existing liabilities at an estimated tax-adjusted effective cost of about 14%, against about 9.5% for the approved financing once its costs were included. That comparison belongs to this estate alone; another family's numbers would differ.

Is the private mortgage meant to be permanent?+

No. The structure is built to give the family time to refinance into lower-cost lending once the pressure lifts.

More tools & related services

Have a file like this?

We fund complex mortgages across BC & Alberta. Send us the details and we'll tell you if we can help, honestly.