Private Mortgages Toronto
When a bank declines the file and the deadline won't move, private financing fills the gap. We arrange equity-based first and second private mortgages throughout Toronto and the GTA - fast decisions, practical underwriting, and a real plan to move you back to conventional lending.
Financing that underwrites the address, not the applicant's resume.
A bank starts with your income and credit and works backward to the property. A private lender flips that order. Whether the money comes from a mortgage investment corporation or an individual investor, the security is the real estate itself, so what drives the decision is the equity cushion, how quickly the home could be sold if needed, and how the loan gets repaid when the term ends.
Skipping the stress test and rigid ratios means a file a bank rejects can often be approved by a private lender within a couple of days. The cost is higher pricing, which is exactly why this kind of financing is designed as a short stopover, not a final destination.
The house is the file
A private underwriter reads the equity and the exit before anything else. A thin credit bureau or a tax return full of deductions isn't a dealbreaker here.
Speed when the calendar is tight
A firm closing next week, a builder's cutoff, a CRA bill coming due — private files can move from application to funded in days, not the weeks a bank needs.
A much shorter document list
No stress-test math, no exhaustive paper trail. Usually an appraisal, a mortgage statement, proof taxes are current, and a workable repayment plan.
A way off the power-of-sale clock
Once arrears or a notice of sale have started, equity can be used to pay the defaulting lender out and buy room to sell or refinance on your own schedule.
First position or a second layer
Leave a favourable low-rate first mortgage untouched and layer a second behind it, or replace the whole structure with a new private first. Both get priced out.
Built to be temporary
Every arrangement we set up comes with a written path back to bank or B-lender financing once the term is done.
Files that were made for a private lender.
- Self-employed or commission earners whose income a bank refuses to verify
- Late payments, collections, a consumer proposal, or a prior bankruptcy on file
- Mortgage arrears, unpaid property tax, or an active power of sale notice
- Rolling several high-interest credit cards into a single, lighter payment
- Bridge funds needed between purchasing a new home and closing on the old one
- Pre-construction or builder closings on a timeline the bank can't match
- Draw financing on a renovation or build that's already underway
- Newcomers and work permit holders with no Canadian credit history yet
- Investors already past the number of rental properties a bank will carry
- Separation, estate, or buy-out situations where cash is needed on short notice
What you should expect to pay.
Rates sit above what a bank would quote, and a lender fee plus a brokerage fee are standard, alongside legal and appraisal expenses. Most terms are interest-only for six to twenty-four months, which holds the monthly payment down while you work through whatever needs fixing.
Every figure is disclosed before you sign anything, and if a conventional lender, a B lender, or a HELOC would actually cost you less, that's what we'll recommend. Independent legal advice is a standard part of private files, and it's there to protect you.
All financing remains subject to lender approval and property qualification. Amounts, rates, and loan-to-value ceilings vary by lender, property type, and location.
Equity gets you approved. Credit history doesn't rule you out.
Text or call (647) 342-1355 for a free quote. No cost, no obligation, no credit pull to start. Conditions apply.
From a first message to funded money.
1. Walk us through it
Address, rough value, what's owed, and what the funds are for. A ten-minute call or text gets it started. Nothing is pulled from your credit bureau yet.
2. We canvass private lenders
Your file goes out to our network of MICs, private lenders, and individual investors, and we return with actual offers — rate, fees, term, and total cost spelled out.
3. Appraisal, then commitment
Pick the offer that works, we book the appraisal, and the lender puts out a formal commitment with every condition listed.
4. Your lawyer finishes it
The mortgage gets registered and funds are released. Straightforward files can go from the first phone call to funded money in under a week.
Private mortgage FAQ.
What counts as a private mortgage?
It's a loan registered against real estate where the money comes from a mortgage investment corporation, an individual investor, or a private lending firm rather than a chartered bank. The underwriting centres on the property and its equity cushion, not a rigid income-and-credit checklist.
Who typically needs one in Toronto?
Self-employed owners whose write-offs shrink their reported income, people rebuilding after credit trouble, buyers on temporary work permits, homeowners staring down a power of sale notice, landlords with more properties than a bank will finance, and anyone racing a closing date a bank can't hit.
What loan-to-value can I reach?
A private first mortgage typically tops out near 75 to 80 percent of appraised value. Stack a second position behind it and combined financing can push toward 85 to 90 percent on well-located urban homes. The ceiling shifts with location, property type, and how quickly the home would sell.
What does private financing actually cost?
Rates run above bank pricing, and you should expect a lender fee, a brokerage fee, legal costs, and usually an appraisal on top. We put the full cost breakdown in front of you in writing before anything is signed, so you can weigh it against other paths.
How quickly can funds actually land?
A clean file can fund within a matter of business days once the appraisal is done and a lawyer is engaged. Files tied to a looming power of sale or a builder deadline get pushed to the front of the line.
Is this meant to be a long-term mortgage?
No — it's a bridge. Terms are usually interest-only and run six to twenty-four months. The goal is to steady the situation, clean up income documentation or credit, and graduate back into bank or B-lender financing at a lower rate.
Tell us about the property and the timeline.
Share the address, an approximate value, the balance owing, and when the funds are needed. We'll come back with what private lenders are willing to do - and flag it if something cheaper is realistic.
Text (647) 342-1355 for the fastest reply, or call the same number.
More on private lending in Toronto
Second mortgages in Toronto
Add a lender behind your current mortgage without touching it.
Private mortgage rates in Toronto
How pricing and fees get set, and the levers that move your quote.
Private lenders vs banks
Each has a lane. Here is how to tell which one you're in.
Power of sale financing
Using home equity to freeze enforcement while there's still time.
Bad credit mortgages in Toronto
Getting approved when the bureau file is messy but the equity isn't.
Home equity loans in Toronto
Every route to converting Toronto equity into spendable cash.