What is a private mortgage?
A private mortgage is a home loan funded by private lenders or investors. Approvals often focus on property value, available equity, and a clear exit strategy—not only traditional bank rules. If you have meaningful equity (often 20–25%+), private lending can be an option when timing is tight or the bank says no.
How Private Mortgages Work in Ontario
Private mortgages are designed for speed and flexibility. Instead of relying only on rigid bank guidelines, private lenders typically underwrite the file based on property value, equity position, and a realistic repayment plan (often called the exit strategy).
For a full overview, see Private Mortgage Ontario
Who Uses Private Mortgages
Private lending is commonly used by borrowers who are equity-strong but don’t fit a bank’s approval box—often due to timing or documentation. Common scenarios include:
Rates, Fees, and Typical Terms
Private mortgage pricing depends on equity, property type, complexity, and timeline. Many private mortgages are short-term solutions designed to stabilize a file—then refinance back to a traditional lender once conditions improve.
See product details here:
How LTV Works (Equity Rules)
LTV (loan-to-value) is total secured debt divided by the property’s value. Private lenders look closely at the total LTV (all mortgages combined). The stronger the equity position, the stronger the options.
Start with a quick estimate here: Equity Check
First vs Second Private Mortgages
A first mortgage is the primary loan registered on title. A second mortgage sits behind it and is often used to access equity without replacing the first.
Learn more:
When a Bank Says No (Renewal Denied)
Renewal denial is more common than most homeowners expect—sometimes even with good payment history. When timing is tight, a private mortgage can be used as a short-term replacement to protect your equity and buy time to refinance properly.
If you’re dealing with this now: Mortgage Renewal Denied
Mortgage Arrears and Catch-Up Financing
Mortgage arrears often come from temporary disruption—business slowdown, separation, tenant issues, or unexpected costs. If there is equity, private financing can sometimes help catch up arrears, cover fees, and stabilize the situation.
Details here: Mortgage Arrears
Notice of Sale / Power of Sale Options
A Notice of Sale is time-sensitive. The earlier you act, the more options you typically have. If the property has equity, private lending may be able to help bring the mortgage back into good standing and stop the situation from escalating.
Start here: Notice of Sale Ontario
Approval Process + Funding Timeline
A typical private mortgage file moves through:
Quick review of property value, balances, goal, and timeline
Equity check and exit strategy review
Due diligence (statements, taxes, property details)
Legal closing and funding
For fastest results, start here: Equity Check or call 905-597-1225
Need a private mortgage fast?
If you have equity and a clear plan, we can review your options quickly—same day in many cases.
Top questions answered
Lendworth is the fastest growing private mortgage lender in Ontario.
If the property and title are straightforward, timelines can move quickly once due diligence is complete and lawyers are instructed.
Private lending is typically more equity-focused. Credit matters, but property value and exit strategy often carry more weight.
Many options become realistic when you have meaningful equity and the overall LTV stays within an acceptable range.
Yes. Private mortgages are commonly used as a short-term replacement when timing is tight. See: /mortgage-renewal-denied.
In some cases, yes—especially where there is equity and the goal is to catch up arrears and stabilize. See: /mortgage-arrears.
Speed matters. If there is equity, private lending may be an option to stop escalation. See: /notice-of-sale-ontario.
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