What is the minimum equity required for a private mortgage?

Most private lenders require at least 20–25% equity in your property to qualify for private mortgage financing.

Are private mortgage rates higher than bank rates?

Yes. Private mortgage rates are higher, typically between 7% and 12%, but offer fast approvals, flexible terms, and equity-based lending.

Private Mortgage and B-lender Mortgage

Q: What is the approval time for private mortgages?

Private mortgage approvals are typically completed within 24–48 hours, with funding available in less than a week.

Q: Can I get a private mortgage with bad credit?

Yes. Private lenders focus primarily on your property’s equity rather than your credit score or income history.

Q: What areas in the GTA do you serve?

City Mortgages serves Toronto, Mississauga, Brampton, Scarborough, Vaughan, Markham, and surrounding GTA regions.

Securing a mortgage in Toronto can feel overwhelming, especially if you’ve faced challenges with traditional banks. At City Mortgages, we specialise in private mortgage lending solutions designed for homeowners, buyers, and investors across the GTA. Whether you’re self-employed, rebuilding your credit, or need fast access to equity, our team connects you with trusted private lenders who understand your unique situation.

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Toronto Private Mortgages: What We Offer

Private mortgages are alternative financing options that don’t follow the strict approval process of major banks. Instead, they’re offered by individual lenders or mortgage investment corporations that evaluate your property’s value and equity rather than focusing only on your income or credit score.

In Toronto’s competitive real estate market, many homeowners and buyers turn to private mortgages when they:

Need funding quickly for a purchase or refinance

Have been turned down by traditional banks

Want to access home equity for debt consolidation or investment

At City Mortgages, we collaborate with a robust network of local private lenders across the GTA to offer flexible mortgage solutions tailored to your needs.

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Private Mortgage vs Bank Mortgage in Toronto

Approval process differences: Banks often take weeks to review applications, requiring extensive paperwork and strict qualification checks. With private mortgages, approvals are typically much faster, often within just a few days.

Credit score and income flexibility: Traditional lenders place a strong emphasis on credit history and stable income. Private lenders, on the other hand, prioritise your property’s equity and potential, making it easier for self-employed or credit-challenged borrowers to qualify.

Interest rates and repayment terms: Private mortgage rates are typically higher than bank rates, ranging from 7% to 12% depending on risk. However, they come with shorter terms (usually 1–3 years) that act as a bridge until you can refinance with a traditional lender at lower rates.

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Who Can Benefit from a Private Mortgage in Toronto?

Self-employed professionals in the GTA

Freelancers, contractors, and business owners often struggle with bank mortgages due to inconsistent income. Private mortgages are ideal for this group because lenders consider overall financial strength, not just T4 slips.

Borrowers with bad credit history

If you’ve faced late payments, collections, or even bankruptcy, banks may decline your application. Private lenders focus on the value of your property, giving you a second chance to rebuild your financial profile.

Real estate investors (rental & flip financing)

The property market is competitive, and investors need quick access to capital. Private mortgages allow fast purchases, renovations, or bridge financing for flips and rental properties.

First-time buyers struggling with bank approvals

Many new buyers find it difficult to meet stress test requirements. Private lenders can help them secure their first property while building a pathway to traditional financing in the future.

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Types of Private Mortgage Solutions We Provide

At City Mortgages, we know that no two borrowers face the same challenges. That’s why we provide a wide range of private mortgage options designed to solve specific financial situations.

Residential Private Mortgages: For many homeowners, traditional banks make it difficult to get approved, especially if you’re self-employed or have a non-traditional income source. With our residential private mortgages, you can:

Purchase your first home even if banks turned you down
Refinance to unlock equity for renovations or personal expenses
Access short-term solutions while you prepare for long-term bank financing

Debt Consolidation Loans: High-interest credit cards and multiple loan payments can quickly become overwhelming. By using your home’s equity, we help you consolidate debt into one manageable monthly payment.

Investment Property Financing: Real estate investors often need immediate access to funds. Our private mortgage options are perfect for:

Rental property purchases in high-demand areas
Short-term “fix-and-flip” projects
Expanding your portfolio with multi-unit or commercial properties

Bridge Financing & Refinancing Options: Sometimes you need a financial bridge, whether it’s covering the gap between buying a new property and selling your current one, or refinancing after banks have delayed or declined your application.

Private Mortgage Rates & Terms in Toronto

When considering a private mortgage, it’s important to understand how rates and terms differ from traditional bank mortgages. At City Mortgages, we believe in complete transparency, so borrowers know exactly what to expect before committing.

Current Private Mortgage Rates in Ontario & GTA

Private mortgage rates generally range between 7% and 12%, depending on:

Borrower profile (credit history, income sources, overall risk)

Loan-to-Value (LTV) ratio

Property type and location

Loan size

Unlike banks, private lenders are more concerned with your property’s equity than your credit score.

Typical Terms for Private Mortgages (1–3 Years)

Most private mortgages are designed as short-term financing solutions, usually lasting 1-3 years. These terms provide flexibility for borrowers to:

Improve credit and later refinance at lower rates

Complete a renovation or investment project

Bridge a temporary financing gap

Comparison with Traditional Bank Rates

Bank mortgage rates in Canada typically fall between 5% and 7% in 2025 for qualified borrowers. However, strict requirements, including the federal stress test, high credit scores, and documented income, often prevent many from qualifying.

While private mortgage rates are higher, the value lies in:

Faster approvals: funding in days, not weeks

Flexible eligibility: ideal for self-employed or credit-challenged borrowers

Access to equity: even when banks say no

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Our Streamlined Process

At City Mortgages, we know that speed and simplicity matter when you’re dealing with real estate. That’s why we’ve built a streamlined process that removes unnecessary delays:

Step 1

Free Consultation: Your journey starts with a no-obligation consultation. We explain how private mortgages work and outline available options.

Step 2

Property Assessment & Documentation: Our team collects only essential documents and focuses mainly on property value and equity.

Step 3

Quick Approval & Funding: We present your file to our network of private lenders. Approvals are often within 24-48 hours, with funds available in just a few days.

Step 4

Ongoing Support & Transition: Our team supports you throughout your term and helps plan an exit strategy when you’re ready to refinance.

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Why Borrowers Trust City Mortgages

Choosing a private mortgage lender is a big financial decision, and trust plays a huge role. At City Mortgages, we’ve built our reputation across the GTA by putting clients first and delivering results when traditional banks say no.

Experienced Brokers: We know the local market and match borrowers with the right lenders.

Transparency: Clear breakdowns of rates, fees, and terms.

Client-Focused Approach: Solutions tailored to unique borrower needs.

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FAQs

What is the approval time for private mortgages?

Most approvals are completed within 24-48 hours, with funding available in less than a week.

Can I get a private mortgage with bad credit?

Yes. Private lenders focus more on property equity than on credit score.

What areas in the GTA do you serve?

We serve Toronto and surrounding areas including Mississauga, Brampton, Scarborough, Vaughan, and Markham.

What is the minimum equity required?

Typically, you need at least 20-25% equity in your property.

Are private mortgage rates higher than banks?

Yes, but the flexibility and fast approvals make them a practical short-term solution.

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Private Mortgage and B-lender Mortgage

Best Mortgage Rate in Ontario & Toronto

Term

Fixed

Variable

Toronto Private Mortgages: What We Offer

Private Mortgage vs Bank Mortgage in Toronto

Who Can Benefit from a Private Mortgage in Toronto?

Self-employed professionals in the GTA

Borrowers with bad credit history

Real estate investors (rental & flip financing)

First-time buyers struggling with bank approvals

Why Choose City Mortgages for Private Lending in Toronto?

Local lender network across the GTA

Faster approvals than traditional banks

Personalized solutions for unique financial needs

Types of Private Mortgage Solutions We Provide

Private Mortgage Rates & Terms in Toronto

Current Private Mortgage Rates in Ontario & GTA

Typical Terms for Private Mortgages (1–3 Years)

Comparison with Traditional Bank Rates

Our Streamlined Process

Step 1

Step 2

Step 3

Step 4

Why Borrowers Trust City Mortgages

Services We Offer

First-Time Home Buyer Mortgage Services

Second Mortgage Services

Home Equity Loans & HELOC Solutions

New to Canada Mortgage Solutions

Commercial Mortgage

Investment Property Mortgage Solutions

Mortgage Refinancing

Bad Credit Mortgage

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