If you don’t fit inside a bank’s box — you don’t get approved.
Even with strong equity, solid property values, and years of ownership, banks are rejecting borrowers at record levels. Meanwhile, private mortgages are quietly becoming the go-to solution across Toronto and the GTA.
Here’s the real, unfiltered comparison homeowners need to understand.
Why Bank Loans Are Failing Toronto Homeowners in 2026
Banks haven’t just tightened — they’ve changed the rules entirely.
Common reasons Toronto homeowners are being declined:
❌ Stress test failures (even on renewals)
❌ Self-employed or variable income
❌ Credit score dips or late payments
❌ HELOCs frozen or reduced
❌ Divorce, CRA arrears, or short-term financial disruption
❌ Renewal payments jumping 30–50%
Equity no longer matters to banks. Ratios do.
The Shift: Why Private Mortgages Are Replacing Bank Loans
Private lenders operate under a different philosophy:
Property first. Equity first. Exit first.
That’s why more borrowers are choosing a
👉 private mortgage Toronto solution instead of fighting banks.
Private Mortgage vs Bank Loan — Side-by-Side Reality Check
| Bank Loan | Private Mortgage |
|---|---|
| Stress test required | No stress test |
| Income verification | Equity-based approval |
| Long approval timelines | Same-day decisions |
| Rigid lending rules | Flexible structuring |
| Often declines strong homeowners | Works when banks say no |
2026 Reality:
Banks lend to paperwork. Private lenders lend to property value.
When a Private Mortgage Makes More Sense
Private mortgages are not a last resort — they’re a strategic tool.
Toronto homeowners use them for:
Mortgage renewal shortfalls
Debt consolidation
CRA tax arrears
Divorce buyouts
Business cash flow
Bridge financing
Credit repair windows
Preventing power of sale
The goal isn’t permanent private lending — it’s control, time, and flexibility.
Why Toronto Homeowners Choose Lendworth
Lendworth specializes in equity-based private mortgages across Toronto, Vaughan, and the GTA.
✔ Fast Approvals
Decisions often same day. Funding in as little as 24–48 hours.
✔ Equity-Based Lending
Bad credit, self-employed, or recent bank declines are not deal breakers.
✔ Flexible Structures
Interest-only payments
Prepaid interest (no monthly payments)
Short-term terms with clear exit plans
✔ Strategic Exit Planning
We structure loans with a bank refinance or sale exit already built in.
How Much Can You Borrow With a Private Mortgage?
Most private mortgages are structured up to 80% loan-to-value, depending on:
Property value & location
Existing mortgage balance
Marketability
Exit strategy
If your property has equity, options usually exist — even when banks say no.
The Biggest Misconception About Private Mortgages
❌ “Private mortgages are risky.”
✔ Poorly structured loans are risky.
A properly structured private mortgage gives you:
Time
Liquidity
Control
A clear path back to bank financing
Used correctly, it’s a bridge — not a trap.
Private Mortgage Toronto — Talk to a Real Lender
If a bank loan isn’t working anymore, it doesn’t mean your options are gone.
📞 Call Lendworth: 905-597-1225
🌐 Apply Online: www.lendworth.ca
Serving Toronto, Vaughan, and the GTA
Your equity deserves more™