When a mortgage deal collapses days (or even hours) before closing, panic sets in fast. Deposits are on the line. Legal notices start flying. And banks rarely move quickly enough to fix the problem.
But for many buyers and homeowners, a private mortgage is exactly what saves the deal before closing day.
Here’s how it works, when it makes sense, and when timing matters most.
Why Deals Fall Apart Right Before Closing
Most people assume a failed closing means bad credit or lost income. In reality, that’s rarely the issue.
The most common last-minute problems in Ontario include:
🔻 Low appraisals that reduce loan amounts
📄 New conditions added late by the lender
⏳ Funding delays or expired approvals
💼 Self-employed income re-reviewed
🧾 Title, zoning, or property condition issues
By the time the problem appears, there’s often no time left to fix it through a bank.
What Happens If You Miss Closing Day in Ontario?
This is where the risk becomes real.
Missing a closing date can lead to:
loss of deposit
lawsuits from the seller
bridge loan penalties
emergency short-term borrowing at bad terms
serious credit and legal consequences
Once you’re inside the final days, speed matters more than rate.
How a Private Mortgage Can Save the Deal
Private mortgages are designed for time-sensitive situations — not perfect paperwork.
Instead of re-running the entire file, private lenders focus on:
property value
available equity
loan-to-value (LTV)
a clear exit strategy
This allows funding to happen when banks can’t move fast enough.
What “Saving the Deal” Actually Looks Like
In real scenarios, private mortgages are used to:
close a purchase on time
bridge between lenders
replace a failed bank mortgage
buy time to refinance later
avoid penalties or legal action
Most borrowers do not stay in private lending long-term. The goal is to close now and stabilize later.
When a Private Mortgage Makes the Most Sense
A private mortgage may be the right move if:
your closing is under 30 days
your lender keeps re-reviewing conditions
your appraisal came in low
funding was delayed or withdrawn
the deal is at risk of collapsing
Waiting for a bank reconsideration often means missing the deadline entirely.
The Biggest Mistake Buyers Make
The most common mistake is waiting too long.
Many borrowers only explore private options after the deal is already in default — when choices are limited and costs are higher.
The earlier a private solution is structured, the better the outcome.
How Lendworth Helps Save Deals Before Closing Day
Lendworth works with Ontario buyers and homeowners when timing is tight and pressure is high.
We focus on:
fast, equity-based underwriting
realistic exit strategies
short-term structures (6–12 months)
clear communication with lawyers and agents
If your closing is approaching and your mortgage is in trouble, there may still be time — but action matters.
👉 Apply or speak with a lender immediately:
https://www.lendworth.ca/borrow
Final Thought
A failed bank mortgage doesn’t automatically mean a failed deal.
In 2026, private mortgages are often the difference between closing and collapse — especially when every day counts.