Equity-Based Lending, Fast
When speed, flexibility, or unique circumstances put bank financing out of reach, private mortgages provide a practical path forward—funding based on your home's equity rather than rigid qualification rules.
A private mortgage is a loan funded by an individual investor, a group of investors, or a mortgage investment corporation (MIC) rather than a bank or institutional lender. Because private lenders focus primarily on the equity in your property rather than your credit score, income documentation, or debt ratios, they can approve and fund financing that traditional lenders cannot. For Ontario homeowners facing time-sensitive needs, credit challenges, or unconventional circumstances, private mortgages can be the difference between seizing an opportunity and missing it entirely.
As a FSRA licensed mortgage brokerage, we work with a network of reputable private lenders and mortgage investment corporations across Ontario. Private lending is not for every situation, and it carries higher rates and fees than prime financing—but used strategically, it solves problems that no bank product can. Our role is to determine whether a private mortgage genuinely fits your situation, secure fair terms, and build a clear plan to exit into conventional financing as soon as you're able.
Private mortgages are designed for short-term, equity-driven needs. Common scenarios include closing a purchase quickly when bank approval can't be arranged in time, accessing equity to consolidate debt or fund a renovation when income won't support an institutional refinance, bridging the gap between buying a new home and selling your current one, stopping a power of sale or foreclosure, and funding borrowers with bruised credit, tax arrears, or self-employed income that banks won't recognize. In each case, the property's equity provides the security that makes lending possible.
For homeowners in Toronto, Mississauga, Ottawa, and across Ontario, private mortgages are most often used as a temporary bridge. The higher carrying cost is justified by the speed, flexibility, and access they provide—and the goal is almost always to resolve the underlying issue and refinance into a lower-cost mortgage within a defined timeframe.
Private mortgages can be registered in first or second position. A private first mortgage replaces your existing financing entirely and is common when you have no current mortgage or need to refinance away from an institutional lender. A private second mortgage sits behind your existing first mortgage, letting you access equity without disturbing a favourable existing rate—ideal for debt consolidation, renovations, or short-term cash needs. We help you determine which structure minimizes your overall cost while meeting your objective.
Rates and fees on private mortgages reflect the position, the loan-to-value, and the complexity of the file. Because these are equity-based loans, the amount of available equity is the single most important factor—most private lenders will fund up to 75-80% of a property's value when first and second mortgages are combined. We structure your request to stay within comfortable limits, protecting both your approval odds and your exit options.
Why Choose This Solution
Private lenders make decisions primarily on the equity in your property and the overall exit strategy, not on credit scores, income ratios, or employment history. If you have meaningful equity in your home, a private mortgage may be available even when bankruptcy, tax arrears, missed payments, or unverifiable income have closed every institutional door.
Private lenders can move far faster than banks—often funding within days rather than weeks. When you're facing a firm closing date, a power of sale, an urgent debt situation, or a closing opportunity that won't wait for institutional underwriting, the speed of private lending can be the deciding factor in protecting your home or completing your transaction.
Private lenders evaluate the full story behind your application rather than applying rigid automated criteria. Self-employed income, recent credit events, non-traditional properties, and complex situations that automatically fail at a bank can all be accommodated when the equity and exit plan make sense. Solutions are tailored to your circumstances, not forced into a standardized box.
Whether you need a private first mortgage to replace existing financing or a private second mortgage to access equity behind a favourable existing rate, we structure the right solution. A second mortgage often lets you tap equity for debt consolidation or urgent needs without touching a low-rate first mortgage you want to keep.
When you've purchased a new home before selling your existing one, a private bridge mortgage provides the funds to close on time. This short-term financing covers the gap between transactions, then gets repaid in full when your current home sells—letting you move forward confidently without rushing a sale at a discount.
Private mortgages are intended to be temporary. We build your file with the exit in mind—whether that's repairing credit, documenting income, completing a renovation, or selling a property—so you can refinance into lower-cost conventional financing as soon as you qualify. The private mortgage solves today's problem while we plan tomorrow's solution.
The Process
A clear, step-by-step process designed to make your mortgage journey as smooth as possible.
We start by understanding your goal, your timeline, and the equity in your property. Private lending is equity-driven, so we establish your home's value, your existing mortgage balance, and the amount you need—then confirm whether a private mortgage is genuinely the right tool or whether a better option exists.
We match you with reputable private lenders and mortgage investment corporations whose appetite fits your situation, and determine the right structure—first or second position, loan amount, and term. Choosing the correct lender and structure directly impacts your rate, fees, and approval odds.
We prepare a complete application that presents your equity, your situation, and your exit strategy clearly. The lender typically reviews the property and may require an appraisal. We handle the back-and-forth and address questions proactively to keep your file moving quickly.
Once approved, we review the terms with you in plain language—rate, fees, term length, and conditions—so there are no surprises. We coordinate with your lawyer to register the mortgage and arrange funding to meet your deadline, whether that's a purchase closing or an urgent payout.
Because private mortgages are short-term by design, we set a clear exit plan from day one. We monitor your progress toward qualifying for conventional financing and begin the refinance conversation well before your private term ends—so you transition to a lower-cost mortgage as soon as possible.
Expert Guidance
We assess your property's equity and structure financing around it, opening doors that credit-based lending keeps closed. Strong equity can unlock funding regardless of credit history, income documentation, or recent financial events.
We work only with reputable private lenders and mortgage investment corporations we've vetted for fair rates and reasonable terms. You're protected from predatory practices, hidden fees, and the unreasonable conditions that exist in unvetted corners of the private market.
When timing is everything—a firm closing, a power of sale, or a bridge between two homes—we arrange fast private financing that funds on your timeline, often within days of application.
Access equity without disturbing a low-rate first mortgage. We structure private second mortgages for debt consolidation, renovations, and short-term cash needs while keeping your overall borrowing cost as low as possible.
Private mortgages carry higher rates and fees than prime financing, and we explain every cost clearly before you commit. You'll understand the full picture—rate, lender fees, and broker fees—so you can make an informed decision with no surprises.
Every private mortgage we arrange comes with a plan to exit into conventional financing. We define the milestones, monitor your progress, and start the refinance early so your private mortgage stays a short-term bridge rather than a long-term cost.
Service Areas
As your local mortgage brokerage, we provide personalized service to homeowners and buyers throughout Ontario.
Common Questions
Get answers to the most common questions about this mortgage solution in Ontario.
A private mortgage is funded by an individual investor, a group of investors, or a mortgage investment corporation rather than a bank or institutional lender. The biggest difference is the basis for approval: private lenders focus primarily on the equity in your property and your exit strategy, while banks focus on credit scores, income verification, and debt ratios. This makes private mortgages faster and more flexible, but rates and fees are higher—so they're typically used as short-term solutions rather than long-term financing.
Private mortgages are best for short-term, equity-driven needs: closing a purchase quickly when bank approval can't be arranged in time, accessing equity when income won't support an institutional refinance, bridging the gap between buying and selling a home, stopping a power of sale or foreclosure, or funding borrowers with credit challenges, tax arrears, or unverifiable self-employed income. If your situation is permanent or you qualify for bank financing, a conventional mortgage is almost always the better choice.
Private lending is equity-based, so the amount you can borrow depends primarily on your property's value and existing mortgage balance. Most private lenders will fund up to 75-80% of a property's value when first and second mortgages are combined, though this varies by lender, property type, and location. We assess your available equity and structure your request to stay within comfortable limits that protect both your approval odds and your future refinance options.
Private mortgage rates are higher than prime or B-lender rates, typically ranging from about 8-15% depending on the position (first or second), loan-to-value, property, and overall risk. There are also lender fees and broker fees, usually expressed as a percentage of the loan. Because every situation is different, we provide a clear, written breakdown of all costs before you commit so you can make an informed decision with full transparency.
Private mortgages can often be approved and funded within days, compared to the weeks a bank typically requires. The exact timeline depends on how quickly an appraisal (if required) can be completed and how fast your lawyer can close. For genuinely urgent situations—firm closings, power of sale, or time-sensitive opportunities—this speed is frequently the main reason borrowers choose private financing.
Yes. Because private lenders focus on equity rather than credit, options often exist for borrowers with poor credit, recent bankruptcy or consumer proposal, tax arrears, or even active power of sale or foreclosure proceedings. The key requirement is sufficient equity in the property. We've helped many homeowners use private financing to stop a power of sale, stabilize their situation, and then work toward refinancing into conventional financing.
Private lending is safe when you work with reputable lenders through a licensed mortgage brokerage. The private market does include predatory players who charge excessive fees or impose unreasonable terms, which is why working with a FSRA licensed brokerage matters. We only deal with private lenders and mortgage investment corporations we've vetted for fair practices, and we review every term with you in plain language before you sign. Never proceed with a lender who pressures you or won't disclose all costs upfront.
Private mortgages are designed to be temporary, so an exit strategy is part of the plan from day one. The most common exits are refinancing into a conventional or B-lender mortgage once credit or income improves, or selling the property. We define the specific milestones you need to reach, monitor your progress, and begin the refinance conversation well before your private term ends—so you transition out of higher-cost financing as soon as you qualify.
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