Thousands of Toronto homeowners are being declined by banks every month — not because they lack equity, but because traditional lenders no longer work for real life. Rising rates, stricter stress tests, self-employment income, credit challenges, divorces, probate issues, or short timelines have pushed borrowers to look elsewhere.
That’s where private mortgages in Toronto come in.
In this guide, we break down:
Current private mortgage rates in Toronto
What actually affects your rate
How to qualify (even with bad credit or no income)
How to secure funding in as little as 24–48 hours
What Are Private Mortgage Rates in Toronto Right Now?
As of late 2025, Toronto private mortgage rates typically range between:
8.99% – 10.99% → Strong equity, low LTV, clean property
11.99% – 13.99% → Average equity, second mortgages, time sensitivity
14%+ → Higher risk, short-term bridge or complex files
Unlike banks, private lenders price risk based on the property — not just your credit score or income.
If you have equity, you have options.
Why Toronto Homeowners Are Turning to Private Mortgages
Toronto’s real estate market is unique — and so are its financing challenges.
Private mortgages are commonly used for:
Second mortgages & HELOC alternatives
Debt consolidation
Mortgage refinancing after bank decline
Self-employed or cash-heavy borrowers
Divorce buyouts
Estate, probate & executor financing
Bridge loans
Renovation & construction funding
Stopping power of sale or foreclosure
Private lenders don’t ask why you need funds — they ask how strong your equity is.
What Determines Your Private Mortgage Rate?
Not all private mortgage rates are created equal. Your rate depends on:
1. Loan-to-Value (LTV)
Lower LTV = lower rate
Most private mortgages in Toronto fall between 55%–75% LTV
2. Property Type & Location
Toronto detached homes, townhomes, and condos with strong resale demand qualify for better pricing.
3. Position of the Mortgage
First mortgage → lower rate
Second mortgage → slightly higher rate
4. Exit Strategy
Clear refinance or sale plan = better terms.
5. Speed & Complexity
Urgent closings or legal issues may impact pricing.
Private Mortgage vs Bank Mortgage in Toronto
| Feature | Bank Mortgage | Private Mortgage |
|---|---|---|
| Approval Speed | Weeks | Hours–Days |
| Credit Required | High | Flexible |
| Income Proof | Strict | Minimal |
| Equity Based | No | Yes |
| Custom Terms | No | Yes |
Banks are rigid.
Private lenders are solution-driven.
How Fast Can You Get a Private Mortgage in Toronto?
With the right lender, funding can happen shockingly fast.
At Lendworth, many Toronto borrowers receive:
Same-day approvals
24–48 hour funding
Clear, transparent terms
No hidden fees
We work directly with our capital — no middlemen, no delays.
Why Toronto Borrowers Trust Lendworth
Lendworth is not a call centre.
We are a Toronto-based private mortgage lender and fund manager.
✔ Property-focused underwriting
✔ Competitive private mortgage rates
✔ First & second mortgages
✔ Residential & multi-unit properties
✔ Investor-grade compliance
✔ Confidential, judgment-free process
We lend based on real value, not rigid formulas.
Are Private Mortgage Rates Worth It?
For many Toronto homeowners, the answer is yes — because the alternative is worse:
Missed opportunities
Forced sales
Power of sale risk
High-interest unsecured debt
A private mortgage is often temporary, strategic, and powerful — a bridge to stability, refinancing, or growth.
Get a Private Mortgage Quote in Toronto Today
If you’re researching Toronto private mortgage rates, don’t guess.
Get a real answer, fast.
📍 Serving Toronto & the GTA
⏱ Same-day approvals
🏡 Equity-based lending
📞 Speak with a decision-maker — not a call centre
Your equity deserves more™