They start looking because something urgent just happened.
A renewal is stuck.
A bank says no.
A closing date is coming fast.
CRA is calling.
Payments are behind.
Or the deal is too tight for traditional lending.
And in Toronto’s 2026 market, waiting weeks for a bank decision isn’t just annoying — it can cost you the property.
The good news?
If you have equity, you can still get approved fast.
Sometimes in 24 hours.
Even with bad credit.
What Is a Private Mortgage?
A private mortgage is a loan secured against real estate, funded by private investors or private mortgage lenders — not a bank.
In Toronto, private mortgages are commonly used for:
mortgage renewals that didn’t get approved
debt consolidation (credit cards, CRA, consumer proposals)
urgent closings (purchase or refinance)
self-employed income that banks won’t accept
property value issues or unique properties
temporary cash flow issues
second mortgages to access equity fast
Private lenders don’t approve loans the same way banks do.
They focus on equity and exit strategy, not perfect paperwork.
Can You Really Get Approved in 24 Hours?
Yes — and it happens every day.
A fast private mortgage approval in Toronto usually comes down to one thing:
✅ You have enough equity in the property
If the numbers make sense, a private lender can move quickly because they aren’t stuck in:
rigid stress tests
long branch approval chains
slow underwriting departments
endless “conditions” that keep changing
That’s why private mortgages are often the solution when a bank is taking too long.
The Truth About Bad Credit in Toronto
Here’s what most borrowers don’t realize:
Bad credit doesn’t stop you from getting approved.
Bad credit mostly stops you from getting approved by banks.
Private lenders ask different questions:
How much is the property worth?
What is the mortgage balance today?
What’s the loan-to-value (LTV)?
How do you plan to exit the loan in 6–12 months?
In many cases, even if your credit is bruised from:
late payments
collections
a consumer proposal
CRA arrears
missed mortgage payments
…you can still qualify for a private mortgage in Toronto.
What You Need for a 24-Hour Private Mortgage Approval
If you want the fastest possible approval, here’s what actually matters.
1) Your Property Address
A lender needs to know what they’re lending on.
Toronto condos, semis, detached homes, multi-units, and rural properties all underwrite differently.
2) The Mortgage Statement(s)
They want to see:
first mortgage balance
second mortgage balance (if any)
arrears (if applicable)
payout request
3) A Rough Estimate of Property Value
You don’t always need a full appraisal on Day 1.
But lenders need a realistic value range to estimate:
✅ loan-to-value (LTV)
✅ risk position
✅ approval potential
4) Your Timeline
This is huge.
Because fast approvals are designed for situations like:
“closing in 5 days”
“renewal deadline is this week”
“I need funds before default notice hits”
“sale is collapsing if we don’t fund”
5) Your Exit Plan
Private mortgages are short-term by design.
Typical exit strategies include:
refinancing into an A lender once income improves
selling the property
paying out from another property sale
completing construction/renovation then refinancing
paying off debts and repairing credit
Why Banks Decline Borrowers (Even If You Have a Good Job)
This is why Toronto borrowers are shocked in 2026.
Even “good borrowers” are getting declined because of:
stricter debt service ratios
stress test increases
income verification issues
commission or self-employed income
property value coming in low
rental income being discounted
lender risk flags
credit score drops from high utilization
mortgage renewals being treated like full re-approvals
So if your bank says no, don’t assume you’re done.
It just means the bank’s box doesn’t fit your situation.
What a Private Mortgage Can Be Used For (Toronto Examples)
Private mortgages are used for real problems, fast:
✅ Stop Power of Sale
If your mortgage is in arrears and time is running out, a private mortgage can:
pay out arrears
stop enforcement
replace the existing mortgage
buy you time to recover properly
✅ Debt Consolidation
Roll high payments into one payment:
credit cards
lines of credit
CRA debt
legal debt
payday loans
✅ Emergency Refinances
When something unexpected happens:
divorce
job disruption
business cash flow drop
medical issues
tenant problems
✅ Second Mortgages
Access equity without breaking your first mortgage:
renovations
lump sum debt payout
business capital
urgent cash needs
How Fast Can Funding Happen?
Approval can happen in 24 hours.
Funding depends on the file, but many private mortgages in Toronto fund in:
3–7 days (common)
1–3 days (rush files with clean docs)
same-day funding (rare, but possible with perfect setup)
Speed depends on:
appraisal availability (if required)
lawyer turnaround time
existing mortgage payout timing
title issues
condition fulfillment
What Are Private Mortgage Rates in Toronto?
Private mortgage rates vary based on:
loan-to-value (LTV)
first or second mortgage position
property type
credit profile
urgency/timeline
exit plan strength
In general, private mortgages cost more than banks — but they offer something banks don’t:
✅ speed
✅ flexibility
✅ solutions when the bank says no
A private mortgage is not meant to be forever.
It’s meant to fix the situation and give you control again.
The Biggest Mistake Toronto Borrowers Make
They wait.
They assume the bank will “figure it out.”
They keep sending documents.
They keep hoping for an exception.
And then suddenly:
the renewal deadline passes
the rate jumps to an open term
payments spike
the lender issues a demand letter
options disappear
If you need a private mortgage in Toronto, time matters more than rate.
Get a Private Mortgage in Toronto — Fast Approval
If you need a private mortgage in Toronto, we can help you get an answer fast.
At Lendworth, we focus on:
fast approvals
equity-based lending
first and second mortgages
urgent closings
bad credit solutions
self-employed borrowers
If you have equity, you have options.
Call Lendworth today and we’ll review your situation quickly and tell you what’s possible.
Sign the papers.
Lock the funding.
Move on.
FAQ: Private Mortgage Toronto
How do I qualify for a private mortgage in Toronto?
Usually based on equity, property value, and your exit strategy, not just credit score.
Can I get a private mortgage with bad credit?
Yes. Many private lenders approve borrowers with collections, late payments, or low credit scores.
How fast can I get approved?
Some approvals happen in 24 hours if the property and numbers make sense.
Do private mortgages require income verification?
Sometimes, but typically less strict than a bank — it depends on the file and LTV.
What if my mortgage renewal was denied?
You can often refinance with a private mortgage to avoid higher open rates, missed deadlines, or default risk.