Not because banks disappeared.
Because bank rules changed.
And brokers adapted.
The Old Playbook Is Broken
For years, brokers followed a predictable path:
Bank → Credit Union → Alternative A → Private (last resort)
That order no longer works in a market defined by renewal shock, appraisal compression, stricter underwriting, and unpredictable timelines.
Today’s reality:
Strong credit still gets declined
Renewals don’t mean approvals
Time is often more valuable than rate
So brokers are flipping the script.
Why Brokers Are Leading With Private Lending in 2026
1. Certainty Beats Rate
Banks quote attractive rates—then decline the file weeks later.
Private lenders approve based on:
Real property value
Loan-to-value
A realistic exit strategy
For brokers, certainty closes deals. Rate doesn’t—if the deal never funds.
2. Appraisals Are Coming In Low
Automated valuation models and conservative comparables are crushing refinance amounts.
Private lenders:
Use local, real-world valuation logic
Look at future marketability, not just last quarter’s data
That difference alone is sending more files private-first.
3. Renewals Are No Longer Automatic
Many borrowers assume renewal = approval.
It doesn’t.
Banks now reassess:
Income stability
Debt ratios
Property risk
Internal exposure limits
When that fails, brokers already have a private option lined up—before panic sets in.
4. Self-Employed Borrowers Are Still Misunderstood
Even with solid income, business owners face:
Add-backs ignored
Write-offs penalized
Inconsistent earnings flagged
Private lenders care less about tax optics—and more about equity and execution.
5. Speed Matters More Than Ever
Bank timelines: 3–6 weeks
Private timelines: days
When a borrower is:
Facing renewal pressure
Consolidating high-interest debt
Closing on another property
Preventing power of sale
Brokers go where funding actually happens.
The Real Reason Brokers Don’t Say This Out Loud
Private lending still carries stigma—mostly from outdated thinking.
But brokers know:
Private mortgages are strategic bridges
Not permanent debt
Often the fastest way back to prime lending
They just don’t advertise it—because clients still think “bank first” means “best.”
Private Lending Is No Longer a Last Resort
In 2026, private mortgages are being used to:
Protect renewals
Unlock trapped equity
Consolidate expensive debt
Buy time during market transitions
Preserve ownership instead of forcing sales
That’s not desperation.
That’s planning.
Where Lendworth Financial Corp. Fits In
At Lendworth, brokers send clients first because:
Approvals are asset-based, not algorithm-based
Files are reviewed by decision-makers, not queues
Solutions are structured with clear exits, not guesswork
When certainty matters, brokers choose execution.
The Bottom Line
Mortgage brokers aren’t abandoning banks.
They’re starting where deals actually close.
Private lending isn’t louder—it’s just more reliable.
And in 2026, reliability wins.
📞 Need a second look—or a first approval?
If your renewal, refinance, or purchase feels uncertain, your equity may already be the answer.
Call Lendworth: 905-597-1225
Or explore your options: www.lendworth.ca