Private Mortgage Toronto

Fast approvals when the banks say no

Flexible lending solutions for self-employed, bruised credit, or urgent closings in the GTA

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Declined by banks due to credit or income

Self-employed with hard-to-prove income

Need a second mortgage or fast financing for a closing

Facing foreclosure or need bridge financing

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If traditional lenders aren’t working, you’re not out of options.

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What is a private mortgage?

A private mortgage in Toronto is a short-term loan funded by individuals or private institutions instead of banks or institutional lenders. It can offer:

Faster approvals
Flexible qualification criteria
Asset-based lending (focus on property value)

person holding keys in front of new house with best private mortgage toronto rate

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Nicolas was beyond amazing! He treated us with respect and did everything he could and more to ensure approval and funding for us on a VERY tight timeline. Thank you so much Nicolas, you helped us more than you could possibly know.
Marieanne Breau
Toronto, ON

Private Mortgages in Toronto: Good to Know

Interest rates

Rates are higher than conventional mortgages, typically ranging from 7% to 14% depending on the lender, the property and the borrower’s equity position. This reflects the higher risk to private lenders.

Shorter terms

Private mortgages in Toronto are usually 6 to 24 months. Private mortgages are designed as bridge solutions, not long-term financing.

Lender fees apply

Private lenders typically charge an upfront lender fee (often 1–3% of the loan amount) in addition to interest. We disclose all fees before you commit so there are no surprises.

Equity-based approval

Most private lenders look at the loan-to-value ratio (LTV), which measures how much you’re borrowing relative to the property’s appraised value. Most private lenders cap LTV at 75–85%.

Benefits of Private Mortgages in Toronto

Why go with a private mortgage?

Speed: Close in days, not weeks
Flexibility: Credit and income less restrictive
Opportunity: Secure deals others miss
Short-Term Strategy: Bridge to better financing

How private mortgage applications work

Quick consultation

Get in touch to set up a meeting to look at your private mortgage options in Toronto

File review & lender matching

After a quick assessment we’ll recommend the best private options

Approval & term sheet

Once approved, it’s a matter of signing some documents

Funding

Receive the funding to purchase your next home.

Common Private Mortgage Scenarios in Toronto

Toronto’s housing market has shifted into an opportunity-driven environment. Home prices across the GTA remain below recent peaks, with benchmark values down year-over-year and inventory levels higher, creating more negotiating room for buyers. At the same time, affordability is still a major challenge, continuing to limit how much buyers can qualify for through traditional lenders.

These conditions have made private mortgages increasingly common in Toronto.

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Focus on equity over income

A homeowner in Etobicoke owns a detached property valued at $1.2M with a relatively small remaining mortgage. Due to recent income changes, you no longer meet traditional lending ratios. Instead of being declined, you secure a private mortgage based primarily on the home’s equity.

Secure time-sensitive opportunities

An investor targeting a duplex in Scarborough finds a below-market deal with multiple competing offers. The seller requires a fast closing within 10 days. A bank can’t meet the timeline, but a private lender funds quickly, allowing the investor to secure the property and refinance later with a traditional mortgage.

Access to wide network of lenders besides banks

A buyer in Mississauga is declined by their bank due to strict debt service ratios. Instead of hitting a dead end, a mortgage broker taps into a network of private lenders, each with different criteria. Within days, you are matched with a lender willing to structure a deal that fits your situation, something a single bank simply couldn’t offer.

Self-Employed Borrower Solution

A self-employed contractor based in Vaughan has strong income but writes off significant expenses, making their taxable income appear low. Traditional lenders won’t approve the mortgage amount needed. A private mortgage uses the property and overall financial picture instead of strict income verification, so you can move forward with a home purchase.

Private mortgages in Toronto, approved fast and closed faster.

First and Second Mortgages
No Income & Bad Credit
Debt Consolidation
Residential & Commercial Property
High Loan to Value (LTV)
Stop Power of Sale
Construction Financing

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Private Mortgage FAQ

When traditional lenders decline an application due to credit, income, or time constraints, a private lender can provide a fast and flexible solution. Many homeowners use private mortgages for short-term needs like refinancing, debt consolidation or stopping a power of sale. Lenders come in a lot of different packages. The private lender is a good choice for situations where the borrower is unable to qualify for a traditional mortgage due to not-so-good credit, self-employment, or other issues. People in the business of house flipping frequently use a private lender because there is a very short period to complete the approval process and to close the deal. There could also be a situation where a family member or close friend is interested in lending money for a real estate purchase as an investment. The lender knows and understands the borrower’s situation and is willing to trust in the results.

Private mortgage rates are typically higher than bank rates and vary based on risk, equity, and property location. They are priced for flexibility and speed rather than long-term savings. Since the borrower frequently does not have a sufficient credit rating, the lender feels they are taking a chance and need to include a little cushion. There are other factors like the location of the property, i.e. whether it is located in a high-crime area or a neighbourhood that has declining property values and the general condition of the house. Fixer-uppers are more of a risk because the homeowner will need additional cash to complete the renovation.

Private mortgages offer quick approvals, flexible qualification requirements, and customized solutions when traditional financing isn’t available. Accessibility is one of the prime reasons. Closings are efficient and speedy. There is significantly less paperwork and private lenders are more considerate of less-than-perfect credit records or situations where it is difficult to substantiate employment records.

Most private lenders will lend up to 75% to 80% of the property’s value, depending on the location and overall risk. The maximum loan-to-value ratio (LTV) is based on multiple risk factors such as, location of the property, type of property, credit history, ability to make monthly payment as well as market environment. Very few lenders go beyond 80%, but rates and fees will be adjusted accordingly to reflect the risk associated with the transaction. Location and type of property are definitely the most important factors that private lenders will consider when assessing the deal.

Yes, private mortgages are commonly used as a short-term solution to access equity while improving credit before moving back to traditional financing. Working with a mortgage broker will allow you to create a personal relationship and have them understand your unique needs.

Most private lenders require basic documentation such as property details, mortgage statements, identification, and sometimes proof of income depending on the scenario. The private lender looks at a number of risk factors. The first is the amount of equity in the property. The lender will also carefully review credit history and the borrower’s income. Because the lender is concerned about recouping his or her investment and interest, he or she will look at other factors like liens or judgments that might take priority over the loan repayment.

Private Lenders in Toronto

Private Lenders: Good to Know

Easier, but comes with caveats

The process to obtain a private mortgage in Toronto and Mississauga is definitely easier but the cost of borrowing is generally higher and for that reason it should mainly be considered for a temporary period of time.

Private lenders focus on quality and location of the property

Using a private lender could allow you to access equity in your property that you would not be able to access with a conventional lender. When equity is used smartly the borrower can benefit greatly but it’s important to factor in the higher costs.

Choose a reputable private lender

Fees differ from one lender to another so it’s a good idea to research a few lenders and see if one would be more suitable to you. At Easy House Loan we have private lenders with which we have been working with for several years.

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Get Approved with these Private Lenders in Toronto

Easy House Loan is ready to help with

Buying a Home

First-time buyer or investor

Mortgage Renewal

Time to review your options

Refinancing & HELOC

Access cash from your home

Short-term Fix

Need quick mortgage help