The Bank Said No. Your Equity Didn't.

A private mortgage is a short-term loan secured against real estate, funded by private investors or Mortgage Investment Corporations (MICs) rather than banks. Approval is primarily equity-based; your property's value and available equity matter more than your credit score or income documentation.

In Ontario, second mortgages from private lenders typically carry higher rates than first mortgages, because a second lender sits behind the first and takes on more risk if something goes wrong. Current ranges are in our rate table above.

A Mortgage Investment Corporation (MIC) is a Canadian investment vehicle that pools investor capital to fund mortgages, primarily in the alternative and private lending space. MICs are regulated under Section 130.1 of the Income Tax Act. MIC-funded mortgages still follow FSRA disclosure requirements in Ontario.

Yes. Private lenders are one of the few sources willing to fund raw land purchases. Banks and A-lenders rarely lend on land without a completed structure. Loan-to-value on land is generally lower than on a built property, since there's less for a lender to secure against, and terms run shorter too, usually one to two years.

Borrowers who have been declined by A-lenders or B-lenders, have bruised or poor credit, are self-employed without traditional income proof, need a bridge loan, face CRA tax arrears, are in power of sale, or need flexibility on timing can qualify for a private mortgage. The primary requirement is sufficient equity in the property.

No. Private mortgage lenders in Ontario primarily underwrite based on the property's equity, not your credit score. Borrowers with low credit scores can be approved if they have sufficient equity; your credit score may affect the interest rate but is rarely a dealbreaker.

Typically: government-issued photo ID, a recent property appraisal (or one the lender arranges), your current mortgage statement, a property tax statement, proof of homeowner's insurance, and a brief income summary to help plan your exit strategy. Full income documentation, years of tax returns, and stress-test qualification are not required.

Yes. Power of sale rescue is one of the most time-sensitive situations in Ontario mortgage finance. lendsimpl (FSRA #13763) has relationships with private lenders experienced in power of sale rescues, paying out mortgage arrears and stopping the sale process. Time matters here: contact us right away with your current mortgage statement and property address so we can assess the equity available.

Private mortgage rates in Ontario depend on property location, loan to value, and borrower risk profile. Current ranges by product are published in our rate table, updated monthly. Lender fees typically run 1 to 3% of the loan amount. lendsimpl shops 50+ private lenders to find the most competitive fit for your situation.

Most private lenders in Ontario will lend up to 75–85% of the property's appraised value for residential properties. Combined LTV (1st plus 2nd mortgage) can reach 85% in some cases, depending on property type and location. Urban properties like Toronto, Mississauga, and Hamilton typically get more favourable LTVs.

Private mortgage fees typically include a lender fee (1–2% of the mortgage amount) and a broker fee (1–2%), both disclosed in writing before you proceed, as required by FSRA. Total fees are usually built into the mortgage or paid at closing, lendsimpl (FSRA #13763) discloses all costs in your commitment letter so there are no surprises.

On a $300,000 private mortgage at 10% interest-only: $30,000 in annual interest. At 12%: $36,000. At 14%: $42,000. Private mortgages are almost always interest-only. The usual strategy is to use the term to improve credit, income documentation, or equity, then refinance to a lower-rate B-lender or A-lender at renewal.

Private mortgage timelines are driven mainly by property appraisal and legal registration rather than income underwriting, so many files close faster than the 2–4 weeks a bank mortgage typically takes. lendsimpl coordinates the appraisal, lender review, and legal work in parallel to keep your file moving; the exact timeline depends on how quickly your appraisal and legal documents come together.

Yes, and this is the explicit goal. Private mortgages are typically 6–24 month open or closed terms. lendsimpl builds an exit strategy from day one: identifying what credit, income documentation, or equity improvements are needed to qualify for a B-lender or A-lender mortgage at renewal, and starts that process well ahead of maturity.

They carry higher rates and shorter terms than bank mortgages, and current ranges are in our rate table above. The real risk isn't the rate, it's staying in one too long without a plan to get out. Watch for lenders who charge excessive fees, attach unreasonable renewal conditions, or bury power-of-sale terms in the fine print for missed payments. A private mortgage should have a clear exit built in from day one, not just a low headline number.

In Ontario, any person or company arranging a private mortgage must be licensed by FSRA (Financial Services Regulatory Authority of Ontario). You can verify any broker's licence at www.fsrao.ca. lendsimpl (FSRA Brokerage #13763) is fully licensed and discloses all fees in writing before any commitment is signed. Warning signs of an unlicensed arranger: no FSRA licence number, requests for upfront fees before commitment, and pressure to sign quickly.