Traditional banks in Ontario have strict mortgage rules, and if you don’t fit perfectly into their box, you could find yourself denied. That’s where private mortgage lenders come in.
These lenders offer flexible, fast solutions for homeowners who’ve been declined or need funding quickly.
In this guide, we’ll explain what private lenders are, what they offer, and how to know if working with one is right for you.
What Is a Private Mortgage Lender?
A private mortgage lender is an individual or organization that offers mortgage loans outside of traditional banks and credit unions. They’re not governed by the same rigid policies and are often more focused on equity than credit score or income history.
Private lenders are especially helpful for:
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- Homeowners with bad credit
- Self-employed individuals
- Urgent closings (e.g. stopping a notice of sale)
- Refinancing or taking out a second mortgage
- Homeowners with bad credit
What Do They Offer?
Fast Approvals
Many private lenders approve in 24–48 hours, compared to banks which may take 1–2 weeks.
Flexible Credit Requirements
Even if your score is below 600 or you’ve recently gone through a consumer proposal, private lenders still offer options.
Equity-Based Lending
They look at your home’s value and available equity, not just your income or credit report.
Short-Term Solutions
Most private mortgages are 1–2 year terms, giving you time to fix your credit or refinance with a traditional lender later.
When Should You Use a Private Lender?
Consider a private mortgage lender in Ontario if:
- You’ve been denied by your bank
- You need funds urgently
- You have multiple debts and want to consolidate
- You’re self-employed or can’t show consistent income
You’re facing a legal threat like a notice of sale
Misconceptions About Private Lenders
“Private lenders charge unfair rates.”
Rates may be higher than traditional banks, but they reflect the increased flexibility and speed. For many homeowners, the savings from consolidating high-interest debt more than offset the rate.
“It’s risky to use a private lender.”
Not when you work with a reputable broker. At Burke Financial, we only connect clients with vetted and licensed lenders across Ontario.
Real Story: Private Lending Success
Julia from Ottawa had excellent income but a 580 credit score due to past missed payments. Her bank said no. We helped her secure a private first mortgage in 2 days and gave her a 12-month plan to rebuild her credit and refinance.
How a Mortgage Broker Helps
Mortgage brokers:
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- Have access to multiple private lenders
- Know which ones specialize in certain situations (e.g., second mortgages, low credit)
- Help you avoid high-risk lenders or unnecessary fees
- Work fast to meet legal timelines or closing deadlines
- Have access to multiple private lenders
Private mortgage lenders are a lifeline for many Ontario homeowners. They’re not a last resort, they’re a smart financial tool when traditional lenders won’t help. With the right guidance, private lending can help you protect your home, reduce debt, and move forward with confidence.
Need fast funding in Ontario but the bank said no?
Talk to Burke Financial about safe, reliable private mortgage solutions.
📞 1-866-702-9394
🌐 www.burkefinancial.ca
