Approval on equity
The decision turns on the property, its location, and how much room there is between the loan and the value. Income verification is minimal.
04 — Speed
When the deadlineis measured in days,not weeks.
Private lending looks at the property first and the paperwork second. Approval turns on equity, not on a score — and it closes fast, because that is usually the entire point.
- 90%Of property value available on some private files
- 1st & 2ndPosition lending against Ontario real estate
- DaysNot weeks, when the file and the exit are clean
- EquityDrives the decision, not the credit score
What a private mortgage is, and what it is for
A private mortgage is funded by an individual investor, a mortgage investment corporation or a private fund rather than a bank. Because the lender is not federally regulated in the same way, they can decide on equity and property rather than on income ratios and stress tests.
That flexibility costs money. Private rates are higher than bank rates and there are lender and brokerage fees, disclosed in writing before you commit. It is short-term money — usually a one-year term, interest-only — and it should always be arranged with an exit already planned.
Used correctly it is a bridge, not a destination. It closes a purchase that would otherwise collapse, clears an arrears situation before it becomes a power of sale, or funds a project while you reorganize. Then it is refinanced into conventional lending. We write that exit into the plan from day one, because a private mortgage with no exit is how people lose houses.
What we can do here
First and second position
A private second sits behind your existing mortgage, so you keep a low first-mortgage rate and only pay the higher rate on the new money.
Bridge financing
When your purchase closes before your sale does, a bridge covers the gap. Common, short and inexpensive relative to losing the purchase.
Speed
A clean private file with a current appraisal can fund in a matter of days rather than the weeks a bank underwriting queue takes.
Arrears and power of sale
If you are behind and the clock is running, private money can stop the process and buy the time to restructure properly.
A written exit
Every private mortgage we arrange comes with a plan to get out of it — usually twelve months of credit repair or income seasoning, then a refinance into an alternative or A lender.
How it runs
From first call to funded.
What to have ready
- Property address and a realistic estimate of current value
- Mortgage statements for anything already registered on title
- What the funds are needed for, and the deadline
- Property tax status — arrears matter here
- Any recent appraisal you already have
- Photo ID
- 01
Property and position
What the property is worth, what is already registered against it, and how much room is left.
- 02
The reason and the deadline
What the money is for and when it has to be there. This determines which lenders we approach.
- 03
Terms in writing
Rate, term, lender fee, brokerage fee and all costs disclosed before you commit to anything.
- 04
Fund — and plan the exit
Appraisal, lawyer, funding. On the same day, we set the twelve-month plan to refinance you out of it.
Questions
Private mortgage — the common questions.
More in the full FAQ, or call 416 230 2920.
What do private mortgages cost?
Materially more than bank rates, plus a lender fee and a brokerage fee, both disclosed in writing before you sign. The right comparison is not against a bank rate you cannot get — it is against the cost of the deal collapsing, or the debt you are clearing.
How fast can a private mortgage close?
Days rather than weeks when the file is clean and an appraisal is available. The realistic constraints are the appraisal and your lawyer, not the lender.
Do you check my income and credit?
We look, because a lender will ask and because it shapes your exit plan. But the approval turns on equity. Minimal or no income verification is normal on these files.
What happens at the end of the term?
You refinance out of it. That is why we build the exit at the start — twelve months of clean payments and repaired credit is usually enough to move you to an alternative lender at a materially lower rate.
Talk to a broker