Speed is one of the biggest reasons borrowers turn to private financing. So how fast can a private mortgage actually close? Often in days — if you are prepared. Here is what drives the timeline.
Why private is faster
Private lenders make decisions based on equity and the property rather than lengthy income and credit verification, so approvals can happen in hours and funding in days rather than the weeks a bank can take.
What can slow it down
The usual bottlenecks are legal work, appraisal, title issues and missing documents — not the lending decision itself. Properties with title complications or outstanding liens take longer.
How to be ready
Have your property details, a recent value estimate, mortgage statements and ID ready, and engage a real estate lawyer early. The more organized you are, the faster funds flow.
Speed with a plan
Closing fast is most valuable when paired with a clear exit — a refinance or sale — so the short-term private mortgage does its job and then steps aside.
How Gurpinder Gaheer can help: Private Mortgage Lending in Ontario · Book a free 30-minute consultation