Last updated: September 29, 2025 • Author: Effortless Mortgage
We arrange private mortgages across Ontario. Fast approvals, clear terms, and an exit plan back to A/B lenders when you’re ready.
TL;DR — How to Apply Fast (Ontario, 2025)
- Prep: ID, current mortgage/tax statements (or 20%+ down if buying), recent bank statements, appraisal/comps.
- Submit: Broker packages your file to private lenders prioritizing equity/LTV and property marketability.
- Timeline: approvals in 1–2 business days, funding 24–72 hours after signing.
- Terms: typically 6–24 months; build an exit plan to B-lender/bank.
Private Mortgage in Ontario: Application Steps
Private mortgage Ontario 2025 options are increasingly popular for buyers and homeowners who need fast, flexible financing when banks say no and if they don’t yet fit with B Lenders. Read our comparison –> A Lenders vs B Lenders vs Private Mortgage Lenders.
Whether you’re buying your dream home with a 20% down payment or refinancing using your equity, private lenders offer creative solutions tailored to real-life financial situations. See what affects private mortgage rates.
This guide explains the private mortgage application process step-by-step, designed to help you get fast mortgage approvals and navigate private lending with confidence.
Step 1: What Should I Prepare Before Applying?
Before you begin, make sure you have all the essentials lined up. This will help private lenders assess your situation quickly, speeding up the approval process and boosting your confidence.
Here’s what to get ready:
- A recent home appraisal or solid comparable sales info showing your property’s true value
- Your equity position, or for buyers, proof of at least a 20% down payment (higher is even better)
- Current mortgage statements, property tax bills, and a piece of government-issued ID
- Basic documentation of your income—private lenders work with stated, commission, and even self-employed earnings
- Details about your property’s type, location, and condition (detached, condo, investment, rental, or vacation home)
TIP: Use accurate and current documents to fast track approvals.
Step 2: Why Should I Reach Out to a Mortgage Broker?
Once you’ve gathered your documents, the next best move is to connect with a knowledgeable mortgage broker, like Effortless Mortgage. Experienced brokers can quickly match you with the best private mortgage lenders tailored to your unique financial situation.
They understand the nuances of private lending and can often get you faster, better offers than going it alone.
Why work with a broker?
- Access to many private lenders tailored to your needs
- Expert guidance throughout the complex private mortgage process
- Better rate negotiation and offer comparison
- Faster approval paths due to broker relationships with lenders
- Transparent advice on exit strategies and refinancing options
Getting expert help can save weeks and thousands of dollars, especially in Ontario’s competitive 2025 market.
For Private Mortgage Approval for Homebuyers
Thinking of buying a home with a private mortgage? This quick video breaks down exactly how homebuyers in Ontario can get fast approval, even with flexible income or unique financial situations. Learn the four simple steps to make your private mortgage application smooth and successful.
Step 3: What Happens When I Submit My Application?
Private lenders move quickly after you submit all info—evaluating property, equity or down payment, and your basic ability to pay, not just your credit score.
This is what lenders will check:
- The location of your property (urban and stable neighborhoods are preferred)
- The type and marketability of your home—condition and major repairs can matter for approval
- The size of your equity (owners) or down payment (buyers)—more means lower risk and better rates
- Income sources that show you can support a mortgage, even if they’re variable or non-traditional
- Credit score is secondary; lenders focus on your total profile and payment potential
For Private Mortgage Approval for Homeowners
Already a homeowner and considering a private mortgage refinance or second mortgage? This short video explains how you can use your home equity to secure flexible funding quickly. Discover the simple principles private lenders use to approve loans fast, no matter your credit.
Step 4: How Do I Compare Offers?
Private lenders, especially when accessed via mortgage brokers, can present you with multiple loan offers. Making a wise comparison means checking costs, flexibility, and your long-term exit plan.
What to compare:
- Interest rates and overall lender costs (including broker fees or setup costs)
- Term lengths (most private mortgages are under two years—plan your “exit strategy” in advance)
- Payment options, including monthly, interest-only, or hybrid structures
- Prepayment penalties, discharge fees, or requirements for future refinancing
- Guidance from brokers about transitioning to bank or B lender financing later
TIP: Focus on total cost, flexibility, and your long-term plans—not just headline rates. Read our blog on “Your Complete Guide to Private Lenders Ontario for Better Private Mortgage Rates“.
Step 5: What Happens at Closing?
Once you pick your lender, closing is typically quick and clear. With support from your broker and lawyer, signing can move to funding in 24–72 hours.
What to expect:
- Professional review and final signing with your broker and real estate lawyer present
- Fast release of funds, usually within 24–72 hours after signing
- An actionable repayment or refinance plan so you’re set for the next move
- Essential documentation for your records, making future bank transitions easier
TIP: Head over to our blog on Closing Costs for more details on what to expect as a home buyer.
FAQ: Fast Approval Tips for Private Mortgages in Ontario
Do I need perfect credit to get a private mortgage?
Short answer: No – equity and the property carry more weight than credit score.
Private lenders focus on loan-to-value (LTV), property type/location, and repayment ability. Bruised credit and self-employed or variable income are common scenarios.
What’s the usual down payment or equity required?
Short answer: Buyers typically need 20% down and owners need sufficient equity for the target LTV.
Thresholds vary by property and area; higher equity generally improves pricing and approval odds.
How fast can I be approved and funded?
Short answer: Approvals often in 1-2 business days; funding typically 24-72 hours after signing.
Speed depends on appraisal/title timing and having documents ready. A broker streamlines this.
How long are private mortgage terms?
Short answer: Most terms are 6-24 months, often with interest-only payments.
They’re designed as a bridge to a lower-cost B-lender or bank once income, credit, or LTV improves.
What fees should I expect?
Short answer: Lender fee, broker fee, legal and appraisal fee – disclosed up front. FYI – Effortless Mortgage offers in-house private lenders with $0 broker fee. Ask us about it.
We show the full cost of funds (rate + fees) and any prepayment options so you can compare offers fairly.
Will a private mortgage hurt my chances with a bank later?
Short answer: No – used properly, it can help you qualify later. The ideal exit strategy is private lender to B lender or Bank.
We set an exit plan (credit hygiene, income docs, LTV target) to position you for institutional lenders on renewal.
Can I pay it off early?
Short answer: Usually, yes, with prepayment privileges or a published penalty.
We’ll review the clause so you can refinance or sell without surprises.
Takeaway
Private mortgages offer Ontario buyers and homeowners real alternatives when banks say no. By preparing proper documents, partnering with expert brokers like Effortless Mortgage, and choosing the right offer, you can secure fast, flexible financing for your home purchase or refinance.
Ready to Explore Your Options?
Contact Effortless Mortgage today to get connected with trusted private lenders Ontario homeowners rely on.
We have VIP relationships with over 90+ banks, b lenders and private mortgage lenders including our own in-house private lender with $0 broker fee.
Call us at 1-888-978-4984
Email info@effortlessmortgage.ca
