Legal Services for Private Mortgage Lenders and Borrowers in Ontario
Dwell Law acts for private mortgage lenders and borrowers across Ontario, representing one side of each transaction. Residential construction loans, first and second mortgages, and complex lending structures are handled with experience and care.
Acting for private lenders or borrowers
Residential construction loan specialist
First and second mortgage transactions
Personal file review by Diane Ulman on every deal
Clear written quote provided after every consultation
Private Lending Legal Services
Private mortgage lending requires a lawyer who understands the structure of the deal, the risks involved, and how to protect your interests from commitment through to registration. At Dwell Law we act for private mortgage lenders and borrowers, representing one side of each transaction. Every file is reviewed personally by Diane Ulman, not passed to a clerk or processed by a platform.
We regularly act for lenders or borrowers on:
First mortgage transactions
Second mortgage transactions
Residential construction loans
Bridge financing arrangements
Family and private loan structures
Residential Construction Loans
Residential construction lending is one of our specialties at Dwell Law. Construction loans are more complex than standard mortgage transactions. They involve draw structures, progress advances, and ongoing coordination between the lender, the borrower, the builder, and various authorities throughout the construction process.
Diane Ulman has specific experience with residential construction loans and understands what lenders and borrowers need at each stage of the process, whichever side of the deal you're on. If you are financing or borrowing on a residential construction project, you need a lawyer who has handled these files before and knows where the risks lie.
If you are involved in a residential construction project and need experienced legal representation, book a consultation to discuss your deal.
First and Second Mortgages
First and second mortgage transactions are the most common private lending files we handle. Whether you are lending funds secured by a property or borrowing against your equity, the legal work needs to protect your position clearly and correctly.
For lenders, this includes mortgage preparation, title search, registration, and confirming priority. For borrowers, this includes reviewing the terms of the mortgage, ensuring you understand your obligations, and in some cases arranging independent legal advice.
Book a consultation to discuss your first or second mortgage transaction.
Independent Legal Advice
In some private lending transactions the borrower, or the borrower’s spouse, may be required to obtain independent legal advice before the deal closes. Dwell Law can provide ILA for borrowers in appropriate circumstances. If ILA is required on your deal, let us know at the outset and we will coordinate accordingly. Learn more about our ILA services here
Our Pricing
Private lending legal fees vary depending on the loan amount, structure, and complexity of the deal. Unlike standard residential transactions, no two private lending files are identical. We provide a clear written quote for every file after an initial consultation.
Fees are generally paid by the borrower as part of the lending arrangement, though this varies depending on the deal structure and any broker arrangements in place.
Who We Work With
Individual private mortgage investors
Mortgage Investment Corporations (MIC)
Family lenders advancing funds to relatives
Investors financing residential construction projects
Borrowers arranging private financing, including short-term and construction loans
Borrowers requiring Independent Legal Advice (ILA) or Independent Legal Representation (ILR) before closing
Lenders requiring ILA or ILR coordination for their borrowers
Frequently Asked Questions
Have questions about private mortgage lending in Ontario? Diane is available for a free consultation to discuss your deal. No obligation and no pressure.
Do I need a lawyer for a private mortgage in Ontario?
In most cases, yes. If you are lending, your lawyer protects your interest by conducting title searches, preparing the mortgage documents, and registering your security on title. If you are borrowing, your lawyer makes sure you understand the terms you're agreeing to before you sign.
What is a construction loan draw structure?
A residential construction loan is typically advanced in stages rather than as a lump sum. Each draw is tied to a milestone in the construction process. For lenders, your lawyer coordinates each advance and holdbacks, confirms the conditions for the draw have been met, and ensures your security remains properly registered throughout the project. For borrowers, your lawyer makes sure the draw schedule and conditions in your loan documents are clearly understood before you sign.
What is the difference between a first and second mortgage?
A first mortgage has priority over all other registered charges on a property. A second mortgage sits behind the first mortgage in priority, meaning the first mortgage lender is paid out before the second mortgage lender if the borrower defaults. Second mortgage lending carries higher risk and typically commands a higher interest rate to reflect that. This matters to both lenders assessing their security position and borrowers considering how a second mortgage affects their overall debt.
What is the difference between ILA and ILR in a private lending transaction?
ILA (Independent Legal Advice) means a borrower's own lawyer reviews the mortgage terms independently before signing, to confirm the borrower understood what they were agreeing to. ILR (Independent Legal Representation) goes further, involving actual representation of the borrower's interests in the transaction. Loan documents sometimes call for "ILA" when what the deal actually requires is ILR. Some lenders require one or the other as a condition of advancing funds, and we review the documentation on every file to confirm which applies.
How is pricing determined for private lending legal work?
Private lending fees vary depending on the loan amount, deal structure, and complexity of the file. We provide a clear written quote after an initial consultation, so both lenders and borrowers know exactly what the legal costs will be before the deal proceeds.
Ready to move forward? Book your free 15-minute consultation and receive a clear written quote by email.