Skip to main content
RATECORE
Alternative LendingGreater Toronto Area · Ontario

Private Mortgage Lenders in Toronto

A bank decline is a statement about one lender's rulebook, not about whether you can borrow. Toronto homeowners reach alternative lenders for three reasons: credit that needs time, income that doesn't fit a T4 box, or a deadline the banks can't meet.

Get My Toronto OptionsWhich Path Fits Me?

No credit check to start · Won't affect your score · Free & no obligation

The short answer

On a $1,050,000 Toronto home with a mortgage at about 65% of value, a private second mortgage typically reaches $210,000 of accessible equity — an 85% combined loan-to-value ceiling. Expect interest-only payments of roughly $1,383–$2,258 per month at prevailing private rates of 7.9%–12.9%, plus a lender fee of about $4,200–$10,500 deducted from the advance. Those are ranges, not quotes: private pricing is set file by file on the property and the exit plan.

How much equity can you access in Toronto?

The ceiling is set by loan-to-value, not by your credit score. A conventional refinance stops at 80% of the property's value. A private second mortgage usually reaches 85% combined. Below is that math on Toronto's $1,050,000 average home — replace the value with your own appraisal to get your real number.

Accessible equity on a $1,050,000 Toronto home by amount owed
If you oweRefinance room (80%)Private second (85%)
$525,00050% of value$315,000$367,500
$682,50065% of value$157,500$210,000
$787,50075% of value$52,500$105,000

Illustrative, based on Toronto's average home price of $1,050,000. Your limit depends on a lender-ordered appraisal of your specific property, the condition of title, and the lender's own LTV policy. Not an offer of credit.

What the Toronto market means for your file

Because Toronto values sit near the top of the Ontario range, the 80% conventional ceiling on an average home is around $840,000 — enough that most owners with a seasoned mortgage have real equity to work with, and enough that a private lender will look seriously at the file. High value cuts both ways: it widens your options, but it also means a 2–5% lender fee is a larger dollar amount, so the exit plan matters more than the rate. GTA files also draw the deepest pool of private capital in the province, which generally means more competitive terms than smaller markets.

Toronto is the country's largest housing market and its most closely watched. What makes it different from any other Ontario city isn't just price — it's complexity. A 550-square-foot Liberty Village condo and a 3,000-square-foot Scarborough detached home trade under the same MLS system, but the lenders willing to finance each can be completely different. Some banks discount rates on detached purchases and price condos less aggressively; others do the reverse depending on building size and status certificate history. Any broker handing you a single rate for "Toronto" is missing that nuance.

Which lender tier fits — and what each costs

A lenders (banks)

Credit roughly 650+, provable income, debt ratios inside guideline.

Best available rates, no lender fee.

Compare bank rates

B lenders

Credit from roughly 550, self-employed or bruised files, 20% down or equity.

About 1–2% over bank rates plus a ~1% lender fee.

How B lenders work

Private lenders

Arrears, power of sale, very short timelines, or property no institution will take.

7.9–12.9% interest-only plus a 2–5% lender fee.

Private lending explained

The order matters. Most Toronto borrowers who arrive expecting a private mortgage actually qualify at the B tier, which is materially cheaper. Ask for both to be priced before you sign anything.

If you're behind on payments in Toronto

Ontario's Mortgages Act sets the clock, and it is the same in Toronto as anywhere in the province: a lender must wait 15 days after default before issuing a Notice of Sale, and that notice gives you a 35-day redemption period. Acting in the first two weeks gives you options; acting in the last week usually leaves only the expensive ones.

The four ways to stop a power of sale

Toronto alternative lending — frequently asked questions

How much equity can I access on a Toronto home?
On the $1,050,000 Toronto average, a conventional refinance stops at 80% of value. If you owe about $682,500, that leaves roughly $157,500 of conventional room. A private second mortgage typically reaches an 85% combined loan-to-value, which is about $210,000 on the same file. Your actual limit depends on an appraisal of your specific property, not the city average.
What does a private mortgage cost in Toronto?
Private mortgages in Toronto are priced as a range, not a posted rate: currently about 7.9%–12.9% interest, almost always interest-only, plus a lender fee of 2–5% of the amount advanced and, on some files, a brokerage fee. On the illustrative amount above that is roughly $1,383–$2,258 per month in interest. Every fee must be disclosed to you in writing before you commit.
Can I get a mortgage in Toronto with bad credit?
Yes — credit affects which lender tier fits your file, not whether you qualify at all. B lenders are regulated institutions that generally work from roughly a 550 credit score at about 1–2% over bank rates plus a 1% lender fee. Private lenders look primarily at the property and your equity rather than the score. In Toronto, the practical question is usually which of those two tiers you qualify for, and what the plan is to get back to bank rates within one to three years.
How fast can a private mortgage close in Toronto?
Private files commonly fund in one to two weeks, and urgent files faster, because the lender is underwriting the property rather than running full income verification. The gating items are the appraisal and your lawyer, not the lender's credit department. That speed is the main reason private lending is used to stop a power of sale, where Ontario's Mortgages Act timelines leave a narrow window to act.
Is a private mortgage safe?
Private mortgages are legal and regulated in Ontario. Private mortgages may only be dealt by mortgage agents holding a Level 2 licence, or by mortgage brokers, under the Mortgage Brokerages, Lenders and Administrators Act. You must receive written disclosure of every rate, fee and term before you commit, and you should have an independent lawyer review the commitment. The real risk is not the product — it is taking one without a written exit plan.
Should I use a B lender instead of a private lender?
Almost always, if you qualify. B lenders are regulated institutions and price far closer to the banks. A private mortgage makes sense when speed matters, when the property or income will not fit any institutional box, or when arrears rule out the B tier. A licensed agent should price both before you decide.
How do I get back to a bank mortgage afterwards?
That plan should exist on day one, not at renewal. Most alternative files run one to three years while the borrower rebuilds credit, seasons self-employment income, or clears the debt that caused the decline. The file is then re-shopped to A lenders. If nobody has explained your exit before you sign, that is the question to ask.
30+ Lenders
$4B+ Closed
256-bit SSL
Licensed Agents

Alternative lending in other Ontario cities

MississaugaBramptonHamiltonOttawaLondonWindsorOshawaWhitbyAjaxPickeringOakvilleBurlington

Get a straight answer on your Toronto file

Licensed Ontario mortgage agents who work every lender tier. Every cost in writing, every file planned with its route back to bank rates.

See My Options

RATECORE is a mortgage rate-comparison platform, not a brokerage or a lender. Applications are handled by licensed Ontario mortgage agents; private mortgages are dealt only by agents holding a Level 2 licence or by mortgage brokers. Rates and fees shown are ranges for illustration and are not an offer of credit.