$1.5M Private Mortgage Resolves Lien and Restores Business Continuity in BC

Client: Cabinet Manufacturer, British Columbia Loan Amount: $1,500,000 CAD via Private First Mortgage on Rental Property

A well-established kitchen cabinet manufacturer faced a critical operational disruption when a creditor dispute led to a lien registered against their warehouse title. The lien triggered a default with their primary lender, who then called the warehouse mortgage. No traditional or residential mortgage lender was willing to refinance under those distressed conditions, putting the business at risk of shutting down operations.

We stepped in with a tailored private mortgage solution, secured by the client’s residential rental property. The funding was structured as a first-charge private mortgage of $1,500,000 at a 9.95% fixed interest rate, with a 1% lender fee. This alternative mortgage solution was fast-tracked and closed within 10 days following a full review of appraisals, lease agreements, and legal documents.

The client used the proceeds to pay out the warehouse mortgage in full, removing the immediate threat of foreclosure. When the lien was later overturned in court, the business was able to resume production uninterrupted—preserving key contracts, jobs, and future growth.

This case highlights how a private mortgage in British Columbia can provide essential capital when conventional lenders are unable or unwilling to act—bridging urgent financing gaps to protect both property and livelihood.