Private Mortgages in Ontario
Flexible Financing Solutions When Traditional Banks Say No!
What is a Private Mortgage?
A private mortgage is an alternative financing option for borrowers who don’t qualify with traditional lenders like banks and credit unions. Private lenders offer flexible approval criteria, making them a great solution for:
✔ Self-employed individuals with non-traditional income
✔ Homeowners with low credit scores
✔ Borrowers who need fast mortgage approval
✔ Those looking for short-term mortgage solutions
✔ People facing foreclosure or power of sale
As an Ontario mortgage broker, I work with a network of private lenders who offer customized mortgage solutions based on home equity rather than strict income and credit requirements.
Who Can Benefit from a Private Mortgage?
A private mortgage may be the right option if you:
✔ Have been declined by banks or traditional lenders
✔ Need a short-term mortgage while improving your financial situation
✔ Have bruised or low credit and need time to rebuild
✔ Need fast funding for an investment property or urgent expenses
✔ Are self-employed and can’t provide traditional income verification
✔ Want to consolidate high-interest debt using your home equity
If any of these situations sound familiar, I can help you find the right private mortgage lender in Ontario.
How Do Private Mortgages Work?
Unlike traditional mortgages that focus on credit scores and income, private mortgages are primarily based on your home’s equity. Here’s how they work:
✔ Loan Amount – Typically, private lenders allow you to borrow up to 75-85% of your home’s value.
✔ Short-Term Financing – Most private mortgages have 1 to 3-year terms, ideal for temporary financial solutions.
✔ Interest-Only Payments – Many private mortgages allow interest-only payments, keeping monthly costs low.
✔ Fast Approvals – Private mortgages can be approved in as little as 24-48 hours.
Types of Private Mortgages Available
✔ Private First Mortgages – Used when there is no existing mortgage on the property.
✔ Private Second Mortgages – Allows you to borrow additional funds while keeping your first mortgage in place.
✔ Bridge Loans – Short-term financing to cover expenses between buying a new home and selling your old one.
✔ Home Equity Loans – Borrow against your home’s equity for major expenses or debt consolidation.
✔ Stop Foreclosure Loans – Emergency financing to prevent power of sale or foreclosure.
I’ll help you find the right type of private mortgage based on your needs and financial situation.
Pros & Cons of Private Mortgages
✅ Pros:
✔ Easier Qualification – Based on home equity rather than strict income and credit rules.
✔ Fast Approval & Funding – Get funds in days, not weeks.
✔ Flexible Terms – Interest-only payments, shorter loan terms, and negotiable terms.
✔ Great for Self-Employed & Low Credit Borrowers – Alternative income verification accepted.
❌ Cons:
✖ Higher Interest Rates – Rates are higher than traditional mortgages.
✖ Short-Term Solution – Most private mortgages need to be refinanced or paid off within 1-3 years.
✖ Additional Fees – Private mortgages come with lender and broker fees.
A private mortgage isn’t a long-term solution, but it can be a powerful short-term financing tool to help you get back on track.
How to Qualify for a Private Mortgage in Ontario
Private lenders focus on property value and home equity rather than strict income and credit criteria. To qualify, you typically need:
✔ At least 15-25% equity in your home
✔ A property in a strong real estate market
✔ A clear exit strategy (such as refinancing or selling in the future)
Even if you have bad credit, high debt, or irregular income, I can help you secure a private mortgage that fits your needs.
Private Mortgage Rates & Fees in Ontario
Private mortgage rates are typically higher than bank mortgages due to the increased risk for lenders. Rates depend on:
✔ Your home’s location & marketability
✔ Your equity in the property
✔ Loan-to-value (LTV) ratio
Expect rates between 6% and 12%, depending on the lender and your financial profile. Private mortgages also come with lender & broker fees, which vary based on loan size and complexity.
I’ll help you find the most competitive rates and explain all costs upfront so there are no surprises.
Why Work With a Mortgage Broker for a Private Mortgage?
✔ Access to Trusted Private Lenders – I work with Ontario’s top private mortgage lenders.
✔ Fast Approvals & Funding – I’ll secure your private mortgage quickly and hassle-free.
✔ Flexible Terms to Fit Your Needs – Customized financing options based on your situation.
✔ Exit Strategy Planning – I’ll help you transition to a better long-term financing solution when the time is right.
Get Approved for a Private Mortgage Today!
If you need a fast, flexible financing solution, a private mortgage could be the right fit. I’ll help you secure the best rates and terms so you can move forward with confidence.