Private Mortgage Lenders in Ontario
Private Mortgage Lenders in Ontario, Bad Credit Approved
Turned away by your bank? Turnedaway.ca connects Ontario homeowners with one of Canada's largest private lending networks. We approve based on your home equity, not your credit score or income.
or call 1-855-668-3074
No credit check to get started · Approvals in as fast as 24 hours · Financing from $25,000
A private mortgage is a short-term loan secured against your home and funded by a private individual, mortgage investment corporation, or syndicate rather than a bank. Private lenders approve based on your home equity rather than your credit score or income, which makes them an option for Ontario homeowners who have been declined by traditional lenders.
Why More Ontarians Are Turning to Private Lenders
The demand for private mortgage financing across Ontario and Canada has grown significantly since 2022. CMHC and FSRA data tells the story clearly.
59%
Rise in GTA power of sale listings year-over-year as of September 2025 (CMHC)
2x
New distressed property listings more than doubled from 2023 to 2024 across Ontario
0.30%
CMHC projected mortgage delinquency rate peak by mid-2026, up from 0.13% in early 2020
$200B+
In Canadian mortgages renewing in 2026, many originated at ultra-low rates of 1.5% to 2.5%
Sources: CMHC Residential Mortgage Industry Report 2025, FSRA Mortgage Brokering Sector Supervision Plan 2025-26
How It Works
Apply Online
Complete our secure online application in minutes. No credit check required to get started.
We Match You
Within 24 hours we review your file and match you with the private lender best suited to your situation and property.
Get Funded
Once approved, legal work is completed and funds are advanced. Most files close within 5 to 10 business days once we have everything we need from you.
Who Qualifies for a Private Mortgage in Ontario?
Private mortgage lenders focus on the equity in your home, not your credit score or employment history. If you own a property in Ontario with available equity, you may qualify regardless of your financial situation. Turnedaway.ca regularly arranges private mortgages for:
Bad Credit or No Credit
Missed payments, collections, consumer proposals, and past bankruptcies do not automatically disqualify you.
Self-Employed
No income verification or tax returns required. Your property is the qualifier, not your paystub.
Fast access to funds can pay out mortgage arrears and stop a power of sale before it completes.
Retirees and Fixed Income
No minimum income requirement. Equity in your home is what matters, not your monthly income statement.
Private mortgage funds can be used to discharge CRA liens and tax debts registered against your property.
Behind on property taxes? A private mortgage can clear the arrears before the municipality begins tax sale proceedings.
or call 1-855-668-3074
Private Mortgage Rate Ranges
Every borrower's situation is different. Your equity position, property type, location, and credit history are all unique to you, which is why having access to one of Canada's largest private lending networks matters. A broader network means more lenders competing for your file, giving us the ability to secure the best available rate with the most flexible terms for your specific circumstances.
Private First Mortgage
6.99% to 9.99%
First mortgages carry less risk for lenders and typically come with the most competitive rates. Your rate within this range is determined by your loan-to-value ratio, property type, location, and overall file strength. The more equity you have, the lower your rate.
Private Second Mortgage
8.99% to 11.99%
Second mortgages carry higher risk for lenders as they sit behind the first mortgage in priority. LTV is the primary driver, the more equity you have, the better your terms. Property location and condition also play a significant role.
Turnedaway.ca provides full APR disclosures on every file and abides by all FSRA legislation. We vet every lender in our network to the best of our abilities. You will never be surprised by costs you were not told about upfront. Rates shown are ranges only and are subject to change based on market conditions and individual file details.
What Affects Your Approval
Private lenders look at several key factors when reviewing a file. Understanding what they weigh most heavily can help you know what to expect.
| Factor | Why It Matters |
|---|---|
| Loan-to-Value (LTV) | The most important factor. Turnedaway.ca does not arrange deals above 80% LTV. The more equity you have, the better your terms. |
| Property Type and Location | Standard residential properties in urban Ontario are easiest to finance. Rural, vacant land, and unusual property types may have fewer lender options but can still qualify. |
| Mortgage Position | First mortgages carry less risk than second mortgages and typically come with better pricing. |
| Property Value | An independent appraisal confirms what you can borrow. Turnedaway.ca subsidizes appraisal costs wherever possible. |
| Credit History | Credit matters less than with banks but is still reviewed. A damaged credit history will not disqualify you, but strong equity is required to offset it. |
Our Commitment to Responsible Lending
Turnedaway.ca does not arrange private mortgages above 80% loan-to-value. This is not a policy we advertise to attract business. It is a line we hold to protect our clients.
Property values can fall. When a homeowner is already in financial difficulty, taking them to the edge of their equity creates risk we are not willing to accept on their behalf. Every deal we arrange leaves meaningful equity in place as a buffer.
If a lender or broker is offering you more than 80% LTV on a private mortgage, ask them why, and what happens if your property loses value.
Private Mortgage Lenders vs Banks
If you have been denied by one of Canada's Big Six Banks, a chartered bank, or a credit union, a private mortgage lender is your next option. Here is how they compare.
| Feature | Private Lender | Bank |
|---|---|---|
| Approval Based On | Home Equity | Credit, Income, Stress Test |
| Approval Time | 24 to 48 Hours | Weeks |
| Credit Score Required | No Minimum | 600+ Typically Required |
| Income Verification | Not Required | Required |
| Interest Rates | Higher | Lower |
| Mortgage Stress Test | Not Required | Required |
| Loan Term | 1 to 3 Years | 1 to 5 Years |
| Best For | Urgent or complex situations where banks have said no | Strong credit, stable income, no urgency |
Types of Private Mortgage Lenders in Ontario
Not all private lenders are the same. Understanding who is funding your mortgage matters. Turnedaway.ca works with all three types and will match you with the right one for your situation.
Private Individuals
High net worth individuals who invest their capital directly into mortgages. They can move quickly because they answer to no one but themselves.
Mortgage Investment Corporations
A MIC pools money from multiple investors and deploys it into mortgage products. Risk is spread across many participants, which often means more competitive terms for borrowers.
Syndicated Mortgages
Multiple private investors pool funds to finance a single mortgage or larger development project. Common for commercial properties and larger loan amounts.
Property Types Private Lenders Will Finance
Private mortgage lenders are far more flexible than banks when it comes to property type. While banks prefer standard residential properties in urban areas, private lenders will consider a much wider range including:
If your property does not fit the standard bank mold, Turnedaway.ca works with lenders across Ontario who specialize in financing properties that traditional institutions will not touch.
or call 1-855-668-3074
Risks and Drawbacks of Private Mortgages
Private mortgages are a powerful tool for the right situation. They are not the right fit for everyone. Here is what you need to know before you apply.
Higher Interest Rates
Private lenders charge more than banks to reflect the additional risk they take on. A private mortgage should be viewed as a short-term solution, not a long-term strategy.
Short Loan Terms
Terms typically range from 1 to 3 years. You will need to refinance or repay the mortgage at the end of the term. Most clients transition to a B lender or bank once their situation improves.
Lender and Broker Fees
Private mortgages come with fees beyond the interest rate including lender fees, broker fees, legal costs, and in most cases an appraisal. Turnedaway.ca discloses all costs in writing before you sign anything.
Property Values Can Fall
This is why Turnedaway.ca does not arrange deals above 80% LTV. Leaving meaningful equity in place protects you if market conditions change during your term.
Real Client Results
Every client situation is different. Here are three examples of how Turnedaway.ca helped Ontario homeowners who had been turned away by traditional lenders.
Case Study 1 | Oshawa
Power of Sale Stopped in Oshawa
An Oshawa homeowner with a $780,000 property and $410,000 mortgage fell behind on four payments after a temporary job loss. Their bank refused to refinance due to missed payments and a 565 credit score. A Notice of Sale had already been issued.
Turnedaway.ca arranged a private second mortgage based on the client's available home equity. Funds were used to bring the mortgage current, pay legal arrears, and create a financial cushion while the client returned to work.
Result: Power of sale stopped. Home saved. 14 months later the client refinanced into a lower-cost mortgage after returning to full-time employment.
Case Study 2 | Self-Employed
CRA Lien Discharged for Self-Employed Contractor
A self-employed contractor with a $950,000 home and $420,000 mortgage had accumulated $87,000 in CRA tax debt, resulting in a lien registered against the property. Traditional lenders declined due to bruised credit and the outstanding tax issue. CRA collection activity was escalating.
Turnedaway.ca sourced a private lender who focused on the property's strong equity position. Loan proceeds paid out the CRA lien in full, eliminated high-interest credit card debt, and significantly improved monthly cash flow.
Result: CRA lien discharged. Collection pressure eliminated. Monthly obligations reduced by over $1,200. Client transitioned to a B lender the following year.
Case Study 3 | Retired Couple
Property Tax Arrears Resolved for Retired Couple
A retired couple with a $640,000 home and $210,000 mortgage had fallen behind on property taxes due to rising costs on a fixed retirement income. With $14,000 in arrears, the municipality had begun the tax arrears process and the risk of tax sale proceedings was real.
Because the couple had substantial equity, Turnedaway.ca arranged a private mortgage with minimal income verification requirements. Funds paid all outstanding property taxes, penalties, and interest, with additional funds set aside for needed home repairs.
Result: Tax sale risk eliminated. Home retained. A prepaid interest structure was put in place to eliminate monthly payment stress.
or call 1-855-668-3074
Where We Serve
Turnedaway.ca arranges private mortgages across Canada. The cities below represent areas we serve regularly, but they are not an exhaustive list. We work with homeowners in every province and territory with the exception of Quebec, Newfoundland, Yukon, the Northwest Territories, and Nunavut.
Financing available from $25,000. Call us at 1-855-668-3074 or get started online today.
Frequently Asked Questions About Private Mortgages in Ontario
What is a private mortgage loan?
A private mortgage is a short-term loan secured against your home and funded by a private individual, mortgage investment corporation, or syndicate rather than a bank or credit union. Private lenders focus on your home equity rather than your credit score or income, making them an option for homeowners who do not qualify with traditional lenders.
How long does it take to get a private mortgage?
Approvals typically happen within 24 to 48 hours. Full funding including appraisal and legal work usually takes 5 to 10 business days once all documentation has been received. In urgent situations such as a pending power of sale, some files can close faster.
What is the minimum equity required to qualify?
Turnedaway.ca requires a minimum of 20% equity remaining in your property after the loan is funded, meaning we do not arrange deals above 80% loan-to-value. This protects you if property values decline during your term. The more equity you have, the more lender options available and the better the terms you can expect.
Can I get a private mortgage with bad credit?
Yes. Private lenders do not use your credit score as the primary approval factor. Missed payments, collections, a consumer proposal, or even a past bankruptcy do not automatically disqualify you. What matters most is the equity in your home.
Can I get a private mortgage if I am not working?
Yes. Private lenders do not require proof of employment or income verification. Whether you are self-employed, between jobs, retired, or on disability, you can still qualify based on your home equity alone.
Can a private mortgage stop a power of sale?
Yes. A private mortgage can provide fast access to funds to pay out mortgage arrears and stop a power of sale before it completes. Time is critical in these situations. Contact Turnedaway.ca immediately if you have received a Notice of Sale. We contact the lender's solicitor to resolve things wherever possible.
What is the term for a private mortgage?
Private mortgage terms typically range from 1 to 3 years. They are designed as short-term solutions to help you stabilize your finances and transition back to a traditional lender when your situation improves.
Do I need an appraisal for a private mortgage?
In most cases yes. An independent appraisal confirms your property value and determines how much you can borrow. The appraisal cost is typically paid by the borrower, but Turnedaway.ca will subsidize this cost wherever possible. In some situations a drive-by or desktop appraisal may be accepted.
Are private mortgage lenders safe?
Yes, when you work through a licensed mortgage broker. Turnedaway.ca is licensed through FSRA in Ontario and pre-screens every lender in our network. All fees and terms are disclosed in writing before you sign anything. Never work with an unlicensed broker or a lender who cannot provide full written disclosure of costs.
What does a private mortgage cost beyond the interest rate?
The full cost of a private mortgage includes the interest rate, lender fee, broker fee, legal fees, and appraisal costs. Turnedaway.ca provides a full cost breakdown before you commit to anything. Have questions about fees? Call us at 1-855-668-3074 and we will walk you through everything.
Get Approved for a Private Mortgage in Ontario
Complete our secure online application today and get a response within 24 hours. Financing available from $25,000, with full transparency on cost.
Get Approved Now ✓or call 1-855-668-3074