Private mortgage lenders in Toronto approve applications that banks and B lenders decline. Approval is based primarily on property equity and loan-to-value ratio rather than credit score or income documentation. At Everything Mortgages, we connect borrowers with private mortgage lenders across Toronto and Ontario, structure the application to present the file in the strongest light, and manage the process through to funding.
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A private mortgage is a mortgage funded by a private individual or company rather than a regulated institution such as a bank, credit union, or trust company. Private lenders are not subject to the same federal underwriting guidelines as chartered banks, which means they can approve files that the regulated lending system declines.
How Private Mortgages Work
Private mortgage approval in Toronto is based primarily on the property’s appraised value and the resulting loan-to-value ratio. Most private lenders in Ontario will lend up to 75% to 85% of a property’s appraised value depending on the location, property type, and borrower profile. The lower the loan-to-value, the more lender options are available and the better the rate.
Private mortgages are typically structured as first or second mortgages. A first private mortgage replaces or pays out an existing first mortgage and becomes the primary secured loan on the title. A second mortgage sits behind an existing first mortgage and accesses equity without disturbing the first mortgage’s terms.
Private Mortgage Terms in Ontario
Most private mortgages in Toronto are short-term, typically one year, with renewal options. The short term is intentional, the private mortgage is designed to bridge a specific gap while the borrower’s credit, income documentation, or equity position improves enough to qualify with a regulated lender. We build the exit strategy into the application from day one.
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Private mortgage lenders are the right option in specific situations where neither A lenders nor B lenders can approve the file. The most common scenarios are:
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Private Mortgage Rates and Fees in Ontario
Private mortgage rates in Toronto typically range from 8% to 15% depending on the loan-to-value ratio, property location, and the borrower’s overall risk profile. Lender fees range from 1% to 4% of the loan amount and are charged on top of standard broker fees. These costs are real and we discuss them openly before any application is submitted.
For borrowers using a private mortgage to consolidate high-interest debt, the total monthly cost of a private mortgage is often lower than the combined cost of the debt being replaced. Our debt consolidation page covers that calculation in detail.
Loan-to-Value Limits
Most private lenders in Toronto lend to a maximum of 75% to 85% of the property’s appraised value. Urban Toronto properties with strong market demand typically access the higher end of that range. Rural or unique properties may attract lower LTV limits depending on the lender. The stronger the equity position, the more lender options are available and the better the rate offer.
Our Approach
Private mortgage approval is primarily an equity story. The lender’s main concern is the property value, the loan-to-value ratio, and whether the exit strategy is credible. Our job is to present those elements clearly, pair the file with the right lender in our network, and confirm the path back to regulated financing before the private term begins.
We assess your property value, existing mortgage balance, credit profile, and the specific reason you need private financing before any application is submitted. For most Toronto borrowers, the private mortgage is a one-year bridge while credit is rebuilt, income documentation accumulates, or a property sale is arranged.
Services Offered
Equity and LTV Assessment
We calculate your current loan-to-value ratio and identify how much equity is available for a private first or second mortgage. This determines the realistic loan amount and the lender options available before any application is submitted.
Private Lender Matching
We access a network of 50+ lenders including private individuals and private mortgage companies across Toronto and Ontario. Different private lenders specialize in different property types, LTV ranges, and borrower profiles. We identify the lender whose criteria best match your specific file.
Application Structuring
We prepare the application to present the property value, equity position, and borrower circumstances in the clearest possible way for the private lender’s review. Private lending decisions are often made quickly, and how the file is presented affects both the approval and the rate offered.
Bridge and Exit Planning
We structure the private mortgage term with a specific exit strategy in place. Whether the exit is a B lender refinance, an A lender application after credit rebuilding, or a property sale, we confirm what needs to happen during the private term and manage that timeline with you.
Why Choose Us
We Know Which Private Lenders Fit Which Files
Private lenders in Toronto are not interchangeable. Each has different LTV thresholds, property type requirements, rate structures, and risk appetites. Submitting a file to the wrong private lender wastes time and can result in a declined application that affects the borrower’s negotiating position with other lenders. We match files to lenders based on active knowledge of their current criteria.
Access to 50+ Lenders
Our network spans A lenders, B lenders, and private mortgage lenders across Ontario. For most files that reach the private lending stage, we have already assessed whether a B lender option exists and confirmed it is not viable before recommending a private mortgage. We do not default to private lending when a regulated option is available.
No Credit Pull on Initial Review
We do not pull your credit on the initial review unless you specifically request it. Private mortgage approval is primarily equity-based, and we assess your property value and LTV first before any application is submitted.
How to Get Started
1
Complete our online mortgage application with your basic financial details, the property address or estimated value, and your existing mortgage balance. This gives us what we need to run an initial LTV assessment and identify which private lenders in our network are the strongest fit for your file.
2
Private mortgage files require minimal documentation compared to regulated lenders. Most applications need a recent property tax statement, a mortgage statement for any existing liens, and government-issued ID. If an appraisal is required, we coordinate that directly with an accredited appraiser.
3
One of our mortgage brokers walks through your equity position, presents the private lender options side by side with full transparency on rates, fees, and terms, and confirms the exit strategy before any application is submitted. No obligation, no cost.
Amy Asadullah
Toronto, Ontario
A++++.
I had the pleasure of working with Manzeel at Everything Mortgages. After dealing with 2 other brokers, Manzeel made this purchase happen for me and my family. He has been professional, approachable and sincere. I couldn’t be happier and highly recommend him.
Hovig Tchaderian
Toronto, Ontario
I was extremely pleased with the service I received!! The communication from start to finish could not have been any better.
I would recommend the whole team for anyone that’s looking for a mortgage!!
Thanks again!
Sarah Paul
Toronto, Ontario
My experience with Everything Mortgages was excellent. My mortgage broker was very knowledgeable, professional, and personable. Also, the process was smooth and uncomplicated. I would recommend Everything Mortgages for any type of buyer, new or seasoned, residential or commercial.
Varun Kalia
Canada, Toronto
Manzeel and his team at Everything Mortgages are fantastic! Buying a house can be quite an ordeal but these guys made it stress free and painless. Not only did they take the time to answer all the questions I had but they were also respectful and diligent in keeping me informed through out the closing process. They were mindful of my time and worked around my schedule. It was an excellent experience from end to end. I highly recommend them for anyone in need of a mortgage. Thanks Manzeel and team!
Rahee G
Canada, Toronto
My experience with Everything Mortgages was excellent. Manzeel and his team are best in class. They were very professional and really simplified the process for me. I would recommend Everything Mortgages for everyone!
Melissa Emond
Toronto, Ontario
I’ve personally dealt with Everything Mortgages for years now and they have done many transactions for me (purchases and refinances). They are competitive, tech savvy, and trustworthy. I highly recommend them for all your mortgages needs.
A private mortgage is a mortgage funded by a private individual or company rather than a bank or regulated institution. Approval is based primarily on the property’s appraised value and the resulting loan-to-value ratio rather than credit score or income. Most private mortgages in Toronto are one-year terms and are used as a short-term bridge while the borrower’s credit or income documentation improves enough to qualify with a regulated lender.
Private mortgage rates in Ontario typically range from 8% to 15% depending on the LTV ratio, property location, and borrower risk profile. Lender fees range from 1% to 4% of the loan amount on top of standard broker fees. These costs are higher than regulated lenders and we present the full cost breakdown before any application is submitted. For most borrowers using a private mortgage to replace high-interest debt, the total monthly cost is still lower than what they are currently paying.
Private lenders can approve and fund within 24 to 72 hours when the equity position is clear, the property is in a strong urban market, and documentation is ready. This speed is one of the primary reasons borrowers in time-sensitive situations, including power of sale scenarios, turn to private lenders. A lenders and B lenders cannot match this timeline.
Private mortgage qualification is based on the property rather than the borrower. You need sufficient equity in a property in a marketable location. Most private lenders in Toronto will lend up to 75% to 85% of the appraised value. There is no minimum credit score requirement and no stress test. Borrowers who are self-employed, have a recent consumer proposal or bankruptcy, or have been declined by B lenders are common private mortgage candidates.
Most private lenders in Ontario will lend to a maximum of 75% to 85% LTV depending on the property location, type, and condition. Toronto urban properties with strong market demand typically access the higher end of that range. Properties in smaller markets or with unique characteristics attract lower LTV limits. The lower the LTV, the more lender options are available and the better the rate.
Yes. A private mortgage can pay out the arrears on a defaulted mortgage and stop the power of sale process, provided there is sufficient equity in the property. Private lenders can fund quickly enough to meet the timelines that power of sale situations require. We assess the equity position and the outstanding arrears immediately and confirm whether a private mortgage solution is viable before the power of sale window closes.
A consumer proposal doesn't have to keep you out of the housing market. We work with lenders across Toronto and the GTA who look past the R7 rating on your credit bureau, whether you're still making payments or already discharged. If the bank says no, we say yes.
A discharge doesn't have to mean years on the sidelines. We place GTA borrowers with the right lender at each stage of recovery, from private financing the week after discharge to bank-rate approvals once credit is rebuilt.
If the CRA has registered a lien on your home, or your property taxes have fallen behind, refinancing can pay the debt in full at closing. We connect GTA homeowners with lenders who look at the equity in your home first and the lien second.
A second mortgage in Toronto lets you access your home equity without breaking your existing first mortgage or triggering a prepayment penalty. It sits behind your first mortgage on title and advances funds as a lump sum at closing. At Everything Mortgages, we place second mortgages for Toronto and GTA homeowners with strong credit and those with bruised credit, accessing B lenders, private lenders, and MICs to find the right fit for each file.
Bank said no? A B lender mortgage gives creditworthy borrowers a regulated path to approval when the major banks decline. At Everything Mortgages, we match clients across Ontario with the right B lender mortgage based on their credit profile, income type, and property, not just their credit score.