Dominion Lending CentresDLCG · #1 for new mortgages · $84.5B in 2025
Case Study · Residential / Private

Two Months Into a New Job: A Private Lender's One-Year Open Mortgage Bought a First Condo at 60% in Abbotsford

A single client, a permanent resident with no debt, was buying a first home: a one-bedroom condo with a single garage in central Abbotsford, priced at about $510,000.

Closed in 2024 · Published October 18, 2026

  • Residential
  • Private
  • Purchase
  • First-time buyer
  • Open mortgage
  • Single income
Purchase price
about $510,000
First mortgage
about $300,000
Loan-to-value
60% of the price
Income
one salary of about $58,000, two months into a new job
Rate in 2024
7.99%, one-year open fixed term, interest only

The Situation

A single client, a permanent resident with no debt, was buying a first home: a one-bedroom condo with a single garage in central Abbotsford, priced at about $510,000.

The Challenge

The client, a dental administrator with three years in the field, had been with a new employer for only two months, on one salary of about $58,000. So the plan was a private first mortgage now and a bank or an alternative lender later.

The Solution

In 2024 we placed a first mortgage of about $300,000 with a private lender, 60% of the price, on a one-year open fixed term at 7.99%, interest only. The lender's program for first mortgages up to 60% of the value fit, and a 704 score with every account paid as agreed carried the file.

The Outcome

The client bought a first home with 40% down from their own savings, and the open term meant they could refinance with a bank or an alternative lender at any point without a penalty.

Run the numbers

Mortgage APR Calculator

A private one-year open term costs more than a bank rate. See the true yearly cost of a private mortgage.

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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
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Questions and answers

Questions about this file

Can you buy a home two months into a new job?+

Yes, with a private lender. In this 2024 file the client had been with a new employer for only two months, so a private first mortgage was placed now with a bank or an alternative lender planned for later.

Why a private lender instead of a bank?+

Because of the short time in the new job. In this 2024 file the lender's program for first mortgages up to 60% of the value fit, and a 704 score with every account paid as agreed carried the file.

What does an open term mean here?+

It means no penalty to leave. In this 2024 file the one-year open term meant the client could refinance with a bank or an alternative lender at any point without a penalty.

What rate did the private mortgage carry?+

7.99%, interest only. In this 2024 file the first mortgage of about $300,000 was on a one-year open fixed term.

How much was put down?+

40% of the price. In this 2024 file the client bought with 40% down from their own savings.

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