That’s true with banks.
But in private lending?
👉 Your deal is judged in the first 5 minutes.
Not approved fully — but pre-judged instantly.
And if you understand what lenders look at right away, you can position your deal to get approved faster, with better terms.
The First 5 Minutes: What Actually Matters
When a private lender opens your file, they’re not starting with your credit score.
They’re asking one simple question:
👉 “Does this deal make sense?”
And they answer that by looking at four things immediately.
1. Property Value (The Foundation of Everything)
Before anything else, the lender estimates:
👉 What is this property worth right now?
This can come from:
- Market comparables
- Automated valuation tools
- Recent sales in the area
This number drives everything.
Because in private lending:
👉 The property is the security.
If the value is strong and supported, the deal moves forward quickly.
If it’s unclear or inflated, the deal slows down instantly.
2. Mortgage Balance (What’s Owing?)
Next question:
👉 How much is currently on the property?
This includes:
- Existing first mortgage
- Second mortgages
- Lines of credit
- Any registered liens
Lenders need to know exactly where they stand.
Because this leads directly to the most important number in the entire deal…
3. Loan-to-Value (LTV) — The Deal Maker
Within minutes, the lender calculates:
👉 LTV = Loan Amount ÷ Property Value
This tells them the risk level instantly.
Typical ranges:
- Under 65% LTV → Strong deal (fast approvals, better rates)
- 65%–75% LTV → Acceptable (standard private lending range)
- 75%+ LTV → Higher risk (more conditions, possible decline)
👉 This one number can make or break your deal immediately.
4. Location (Can This Property Sell?)
Even with strong numbers, lenders zoom in on location:
👉 Is this property in a strong, sellable market?
They’re thinking:
- Is there buyer demand here?
- Is this easy to resell if needed?
- Is this a liquid market?
Properties in the GTA move differently than:
- Rural areas
- Unique or remote properties
- Low-demand markets
👉 Strong location = instant confidence
What Lenders Don’t Look At First (Surprising)
Here’s what most people get wrong:
In the first few minutes, lenders are NOT focused on:
- Credit score
- Income documents
- Employment history
Those come later.
First, they decide if the deal itself makes sense.
Why This Matters for You
If your deal passes the first 5-minute test:
👉 Everything moves faster
👉 You get better terms
👉 Approval becomes much easier
If it doesn’t:
👉 The lender starts looking for problems
👉 Conditions increase
👉 Or the deal gets declined
How to Position Your Deal Like a Pro
If you want to think like a lender, focus on this before applying:
- Know your property value (be realistic)
- Understand your total mortgage balance
- Estimate your LTV
- Be aware of your property’s location strength
👉 When you understand these 4 factors, you control the conversation.
The Reality: Decisions Happen Faster Than You Think
Private lending isn’t slow.
It’s decisive.
And most deals are mentally approved or declined within minutes — long before paperwork is complete.
The Bottom Line
If you remember one thing:
👉 Your deal is judged in the first 5 minutes — based on the property, not your profile.
Understand that, and you put yourself in a position to win.
Get Your Deal Reviewed Like a Lender Would
At Lendworth, your file is reviewed the way real lenders think — quickly, directly, and based on your equity.
✔ Same-day review available
✔ No credit check to start
✔ Funding possible in 24–48 hours
👉 Get your options in 30 seconds.