Alberta private-mortgage cost and repayment worksheet

1. Build one cost list from the written quote

Ask the broker to identify every fee, its recipient and when it is paid. Put each amount in only one category. A fee included in the starting principal and withheld from the advance must not also be entered as a separately paid fee.

• □Lender and brokerage fees: dollar amount, how calculated, payment date and refund terms.
• □Appraisal, legal and other closing costs: who orders the work, who pays and whether it can be reused.
• □Existing mortgage or debt payouts: request current statements, including applicable penalties and discharge costs.
• □Repayment and extension costs: ask for the contract wording on minimum interest, prepayment, renewal and discharge.

2. Check the example against your own offer

Illustrative arithmetic only: a $250,000 starting balance at 10% annual interest for six months has $12,500 of interest when paid monthly on an unchanged balance. With $5,000 withheld fees, $2,000 separately paid fees, $100,000 of debt payouts and $1,000 of exit fees, the advance after fees and payouts is $145,000. After separate fees, $143,000 remains. Interest and listed fees total $20,500; $251,000 is needed for principal and exit fees at maturity if all scheduled interest has been paid. These are invented example figures, not Artisan rates or a client result.

3. Write a repayment plan with evidence

Choose the expected source of repayment and identify what must happen before maturity. A future refinance is an application subject to approval, not a certainty.

• □If refinancing: record the income, credit, property value and debt conditions the next lender would need, plus when each can realistically be met.
• □If selling: estimate proceeds after mortgages, selling costs and legal costs; allow for an uncertain sale price and closing date.
• □If repaying from other funds: identify the source, expected amount and availability date without assuming an uncertain payment will arrive.
• □Set a review date well before maturity with your broker, and record who is responsible for each action.

4. Test a delayed exit

In the example, three additional months at the same 10% rate would add $6,250 of interest alone. The lender may decline to extend, increase the rate or charge fees. Record a fallback source of repayment and the additional cash required; discuss what happens if the fallback is unavailable.

5. Bring these questions to the conversation

Ask for the alternatives and the full obligations before agreeing to proceed.

• □Why does this option fit the file, and which institutional or alternative options were considered?
• □Does interest reduce principal, accrue, compound or come out of the advance? This worksheet only models monthly interest payments.
• □What happens if a payment is late or repayment is not possible at maturity?
• □Does the property and financing type require a different assessment? Private commercial financing needs both a property cash-flow review and an exit plan.
• □How much time is available for independent legal advice before signing?