Private Mortgage Lending in Ontario
Fast alternative mortgage financing when traditional banks decline. Flexible credit requirements, quick approvals, and customized lending solutions for residential and commercial properties.
Key facts at a glance
- Equity, not credit score: private first and second mortgages are approved on the property’s value and a credible exit, which is why they work after a bank decline, a non-renewal or a power-of-sale notice.
- Typical file: $150,000 to $1,000,000, 12-month term, interest-only or fixed payments, lender fee plus broker fee disclosed in writing before you sign; approvals in as fast as 24 hours.
- Who uses it: self-employed borrowers, bruised credit, condo closings that appraised short, CRA or consumer-debt consolidation, bridge financing between a purchase and a sale, and anyone whose bank said no.
- Direct access to 35+ private lenders, MICs and B lenders across Ontario; one application, one broker, the lender that fits the file.
- Gurpinder Gaheer, BA Hons, MBA – Mortgage Broker #M22004577, CreditReboot Mortgages, FSRA Brokerage #13163. Rates and terms depend on the file and are always quoted with the full cost of borrowing.
What is Private Mortgage Lending?
Private mortgage lending (also called alternative lending) is financing provided by non-bank lenders—including private individuals, mortgage investment corporations (MICs), and specialized lending funds—to borrowers who don’t qualify for traditional bank mortgages or need faster, more flexible financing solutions.
As a licensed Mortgage Broker in Ontario with access to 35+ private mortgage lenders, I connect borrowers with customized private lending solutions when banks say no. Whether you have credit challenges, need a fast closing, own unique properties, or require bridge financing—private mortgage lending provides alternatives that traditional banking can’t.
Why Choose Private Mortgage Lending?
Traditional banks have rigid lending criteria focused on credit scores, income verification, and property types. Private mortgage lenders in Ontario evaluate applications based primarily on property equity and value—making approval possible even when banks decline.
- Credit flexibility: Approval with poor credit, bankruptcy, consumer proposals, or foreclosure history
- Income flexibility: Self-employed, commission-based, or irregular income accepted
- Fast approvals: Pre-approvals in 24-48 hours, funding in 5-14 days
- Property flexibility: Unique properties, rural land, construction projects, distressed assets
- Purpose flexibility: Debt consolidation, renovations, business capital, bridge financing
- LTV flexibility: Up to 85% loan-to-value on residential, up to 75% on commercial
Quick Facts
Approval Time:
24-48 hours (pre-approval)
5-14 days (funding)
Interest Rates:
7.99% – 14.99% (typical range)
Loan-to-Value:
Up to 85% (residential)
Up to 75% (commercial)
Loan Terms:
6 months – 3 years (typical)
Interest-only payments available
Lender Network:
35+ private lenders across Ontario, Canada
Get Pre-Approved Fast
Who Benefits from Private Mortgage Lending?
💳 Credit-Challenged Borrowers
Poor credit scores, bankruptcy (discharged or undischarged), consumer proposals, past foreclosures, credit counseling, collections, or judgments don’t automatically disqualify you from private mortgage lending.
Typical Scenarios: Credit score below 600, multiple late payments, recent insolvency, no established credit history.
💼 Self-Employed & Entrepreneurs
Business owners, independent contractors, commission-based sales, and self-employed professionals often struggle to document stable income for traditional bank mortgages. Private lenders focus on assets and equity rather than T4 employment verification.
Typical Scenarios: New business (under 2 years), seasonal income, multiple income streams, rental property investors.
⚡ Time-Sensitive Transactions
Real estate opportunities with tight closing deadlines—power of sale properties, receivership sales, estate sales, or competitive offers—require financing approvals within days, not weeks or months.
Typical Scenarios: 30-day closings, conditional offer removals, bridge loans, interim financing while selling existing property.
💳️ Unique or Non-Standard Properties
Banks decline mortgages for properties outside their narrow criteria—rural properties, vacant land, properties requiring major repairs, unconventional construction, commercial conversions, or properties with title issues.
Typical Scenarios: Fixer-uppers, power of sale properties, receivership properties, off-grid homes, land assembly projects.
🔨 Renovation & Construction Projects
Major renovation projects, construction draws, or properties purchased “as-is” requiring immediate capital improvements before traditional financing is available.
Typical Scenarios: Buy-renovate-refinance strategies, value-add investments, construction completion financing, property repositioning.
💰 Debt Consolidation & Emergency Capital
Homeowners with substantial equity but high-interest debts, tax arrears, or urgent capital needs can access equity through private mortgage refinancing when banks won’t increase existing mortgages.
Typical Scenarios: Credit card debt consolidation, CRA tax arrears, legal settlements, business capital injection, divorce settlements.
Types of Private Mortgage Lending Solutions
As a licensed private mortgage broker in Ontario with access to 35+ lenders, I provide customized lending solutions across multiple product categories:
1. First Mortgage Private Lending
What It Is: Private lender holds first position on property title (priority over all other debts).
- Loan-to-Value: Up to 85% LTV
- Interest Rates: 7.99% – 12.99%
- Terms: 1-3 years
- Best For: Primary residence purchases, refinancing existing first mortgages, debt consolidation
- Typical Use: Replacing bank mortgages when banks decline renewal or refinancing
2. Second Mortgage Private Lending
What It Is: Additional financing secured in second position behind existing first mortgage.
- Combined LTV: Up to 85% (first + second mortgages combined)
- Interest Rates: 9.99% – 14.99%
- Terms: 6 months – 2 years
- Best For: Accessing equity without refinancing existing low-rate first mortgage
- Typical Use: Home renovations, debt consolidation, business capital, down payment for investment properties
3. Bridge Financing
What It Is: Short-term interim financing to “bridge” gap between purchase and sale, or between acquisition and permanent financing.
- Loan-to-Value: Up to 75% LTV
- Interest Rates: 8.99% – 13.99%
- Terms: 3-12 months
- Best For: Buying new home before selling existing home, fast acquisition closings, temporary financing gaps
- Exit Strategy: Sale of existing property or refinance to traditional mortgage
4. Construction & Renovation Financing
What It Is: Private capital for construction projects, major renovations, or property value-add improvements.
- Loan-to-Cost: Up to 75% LTC
- Interest Rates: 9.99% – 14.99%
- Terms: 6-18 months
- Draw Structure: Funds advanced based on construction progress
- Best For: Ground-up construction, major renovations, property repositioning projects
- Exit Strategy: Sale or refinance after completion and value increase
5. Commercial Private Mortgages
What It Is: Private lending for commercial real estate, multi-family properties, industrial assets, or mixed-use buildings.
- Loan-to-Value: Up to 75% LTV
- Interest Rates: 8.99% – 13.99%
- Terms: 1-3 years
- Best For: Commercial acquisitions, receivership properties, power of sale properties, properties requiring repositioning
- Typical Use: Financing properties banks won’t touch due to occupancy, condition, or tenant issues
6. Land Mortgages & Development Financing
What It Is: Financing for vacant land purchases, land assembly, or development site acquisition.
- Loan-to-Value: Up to 65% LTV
- Interest Rates: 9.99% – 14.99%
- Terms: 6 months – 2 years
- Best For: Land banking, development site acquisition, land severances, rural property purchases
- Exit Strategy: Development, resale, or refinance after zoning approvals
How Private Mortgage Lending Works
The private mortgage lending process is significantly faster and more flexible than traditional bank mortgages. Here’s the typical timeline and process:
Step 1: Application & Pre-Approval (24-48 Hours)
- Submit basic application (property address, loan amount, purpose)
- Provide property details and estimated value
- Brief credit and income overview (less stringent than banks)
- I match your scenario with optimal lenders from my network of 35+
- Pre-approval issued within 24-48 hours
Step 2: Property Appraisal (2-3 Days)
- Lender orders independent property appraisal
- Appraiser inspects property and prepares valuation report
- Appraisal confirms property value supports requested loan amount
- Loan-to-value ratio (LTV) finalized based on appraised value
- Turnaround: 2-3 business days
Step 3: Formal Approval & Commitment (1-2 Days)
- Lender reviews complete application and appraisal
- Formal commitment letter issued outlining terms: loan amount, interest rate, fees, term length
- Legal conditions specified (title insurance, fire insurance, etc.)
- You review and accept commitment terms
- Approval within 1-2 business days after appraisal
Step 4: Legal Documentation & Funding (3-7 Days)
- Lender’s lawyer prepares mortgage documents
- Your lawyer reviews title, completes title insurance, prepares closing documents
- You sign mortgage documents and closing paperwork
- Lender advances funds to your lawyer
- Funds in hand within 5-14 days from initial application
Total Timeline: 5-14 Days from Application to Funding
(Compare to traditional banks: 30-60+ days with no guarantee of approval)
Private Mortgage Costs & Fees
Private mortgage lending costs more than traditional bank mortgages due to higher risk and flexibility. However, for borrowers who can’t access bank financing, private lending provides essential capital access. Here’s a transparent breakdown:
| Cost Component | Typical Range | Notes |
|---|---|---|
| Interest Rate | 7.99% – 14.99% | Varies by LTV, property type, borrower profile, and term length |
| Lender Fee | 1% – 4% of loan | One-time setup fee paid at closing; higher for riskier scenarios |
| Broker Fee | 1% – 2% of loan | My fee for sourcing optimal lender and managing transaction |
| Appraisal | $300 – $800 | Independent property valuation; varies by property size/complexity |
| Legal Fees | $1,000 – $2,500 | Your lawyer’s fees for closing documentation and registration |
| Title Insurance | $200 – $500 | Protects against title defects or fraud |
Example Scenario: $300,000 Private First Mortgage
- Loan Amount: $300,000
- Interest Rate: 9.99% (12-month term)
- Monthly Payment: $2,497.50 (interest-only) or $2,640 (principal + interest)
- Lender Fee: $6,000 (2% of loan)
- Broker Fee: $3,000 (1% of loan)
- Appraisal: $500
- Legal Fees: $1,500
- Total Closing Costs: $11,000
Net Proceeds to Borrower: $289,000 (after $11,000 in fees deducted at closing)
Note: Closing costs are typically deducted from loan proceeds, meaning you receive net proceeds after fees. Some lenders allow fees to be added to the loan amount, increasing total borrowing.
Why Choose Gurpinder Gaheer as Your Private Mortgage Broker?
🏦 35+ Private Lender Network
Access to Canada’s most extensive network of private mortgage lenders—including individual investors, mortgage investment corporations (MICs), syndicated funds, and institutional alternative lenders. This ensures you get the best possible rates and terms through competitive bidding.
🎯 Dual Real Estate + Mortgage License
Licensed as both Real Estate Broker and Mortgage Broker—I understand property values, market dynamics, and lending criteria simultaneously. This unique perspective helps structure deals that maximize approval probability and optimize loan terms.
⚡ 24-48 Hour Pre-Approvals
Urgent financing needs require immediate response. I provide pre-approval decisions within 24-48 hours and can fund transactions in 5-14 days—enabling you to act on time-sensitive opportunities that require fast capital deployment.
📊 MBA-Level Financial Analysis
Cornell + Queen’s Executive MBA training provides sophisticated deal structuring, exit strategy planning, and ROI optimization—ensuring private lending fits into your broader financial plan and creates long-term value, not just short-term capital access.
Get Pre-Approved for Private Mortgage Lending Today
Whether you need fast financing, have credit challenges, own unique properties, or require flexible lending solutions—let’s discuss how private mortgage lending can provide the capital you need.
Contact Information
Gurpinder Gaheer, BA Hons, MBA
Licensed Mortgage Broker & Real Estate Broker
Private Lending Specialist – Ontario
📞 647-999-3962
📧 gurpinder@gaheer.com
🌐 www.gaheer.com
What Happens Next?
- 30-minute consultation to understand your financing needs
- Scenario assessment and lender matching
- Pre-approval within 24-48 hours
- Rate and term comparison across multiple lenders
- Application submission to optimal lenders
- Funding in 5-14 days
- No obligation to proceed after initial consultation
Declined by Your Bank? You Still Have Options
A bank decline is a detour, not the end of the road. Banks underwrite to a formula: credit score, provable income, debt ratios. When one of those lines is off, the file is declined even when the property and the equity are strong. B-lenders and private lenders look at the asset and the exit first, which is why most of the files I place were turned down by a bank first.
- Bruised or low credit score – late payments, collections, a credit score under 600.
- Consumer proposal or past bankruptcy – active or recently discharged.
- Self-employed or business income that does not show on a T4 the way the bank wants it.
- Renewal refused by your current lender, or a renewal offer you cannot carry.
- Arrears, CRA debt or a power of sale notice that has to be cleared quickly.
- Unusual property – rural, mixed-use, land, or a home mid-renovation.
I work with 35+ B-lenders and private lenders across Ontario, place 1st and 2nd mortgages, and in most files have an approval in hand in as fast as 24 hours. Send me the decline letter and the basics – address, balance, what the bank said – and I will tell you the same day which lenders will look at it and what it will cost before anyone orders an appraisal.
Tell me what the bank said – I will reply the same day
Frequently Asked Questions
What is a private mortgage?
A private mortgage is a loan funded by a private lender or mortgage investment corporation rather than a bank, secured primarily by the equity in the property. It is used when speed, flexibility or credit challenges rule out traditional financing.
How quickly can private mortgage financing close?
Private financing can often close in a matter of days to about two weeks, which is why it is valuable for power of sale rescues, bridge situations and time-sensitive acquisitions.
What rates do private mortgages charge?
Private mortgage rates are higher than bank rates because they reflect higher risk and shorter terms. They are typically a short-term tool, with a plan to refinance into conventional financing later.
Related services
Ready to apply? Start your application online
Open a file for a first or second mortgage, purchase or refinance, secured against a property you own or are purchasing. Only three starter documents are needed: photo ID, your current mortgage statement(s) and your property tax statement.
- Choose the type of financing.
- Fill in the basics (about 5 minutes) – only your name, mobile phone, email and the core loan details are required.
- Upload your ID and one or two documents from your phone, or send them later.
- I personally review your file and call you.
Secure online application – no need to have everything ready to start. Questions or trouble with the form? Email service@gaheer.com or call 647-999-3962.
What Is a Private Mortgage and How Does It Work?
When banks say no, a private mortgage can get a deal done. Here is a clear explanation of what private mortgages are, how they work, and when they make sense in Ontario.
What is a private mortgage?
A private mortgage is a loan from a private lender or mortgage investment corporation (MIC) rather than a bank, secured primarily by the equity in the property. Decisions are based largely on the property and the borrower’s equity rather than rigid income and credit rules.
How it works
Private lenders focus on the loan-to-value and the exit plan. Terms are usually shorter — often around a year — interest-only, and priced higher than bank rates to reflect the added risk and speed. The plan is typically to refinance into conventional financing or sell within the term.
Who it is for
Private mortgages suit borrowers with credit challenges, self-employed or hard-to-document income, unique properties, time-sensitive purchases, or situations like stopping a power of sale or bridging between deals.
The trade-off
You pay more for speed and flexibility. Used strategically — as a short-term tool with a clear exit — a private mortgage can unlock opportunities that would otherwise be impossible.
How Gurpinder Gaheer can help: Private Mortgage Lending in Ontario · Book a free 30-minute consultation
Private Mortgage vs Bank Mortgage: Pros and Cons
Private and bank mortgages serve different needs. Knowing the trade-offs helps you choose the right tool. Here is an honest comparison.
Bank mortgages: lower cost, stricter rules
Banks offer the lowest rates and longest terms, but they underwrite strictly — verifiable income, strong credit, and properties that fit their box. Approvals can be slow, and a single weak spot can lead to a decline.
Private mortgages: faster, more flexible
Private lenders move quickly and lend on equity and common sense, accommodating credit issues, unconventional income or properties, and tight timelines — at a higher rate and shorter term.
How to decide
If you qualify comfortably and have time, a bank is usually cheapest. If you have been declined, need to close fast, or have a short-term plan, private financing may be the smarter route despite the cost.
The best of both
Often the winning strategy is to use a private mortgage now and refinance into a bank later. A broker who works with both can map that path from the start.
How Gurpinder Gaheer can help: Private Mortgage Lending in Ontario · Book a free 30-minute consultation
When Does a Private Mortgage Make Sense?
A private mortgage is a tool, not a default choice. Used in the right situations it solves problems banks cannot. Here is when it makes sense.
Time-sensitive deals
When you need to close quickly — a competitive purchase, an auction, or a power of sale rescue — private financing’s speed can be decisive.
Credit or income hurdles
If you are self-employed, rebuilding credit, or have income that is hard to document, private lenders can look past the issues a bank cannot.
Bridge and transition
Private mortgages are ideal for bridging — buying before you sell, funding a renovation, or stabilizing a property before refinancing into long-term financing.
When it is not the right fit
If you qualify easily for a bank and have no time pressure, paying private rates rarely makes sense. The key is having a clear, realistic exit before you take one on — which is exactly what a good broker helps you confirm.
How Gurpinder Gaheer can help: Private Mortgage Lending in Ontario · Book a free 30-minute consultation
How Fast Can a Private Mortgage Close in Ontario?
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