Private Commercial Mortgage Ontario — Equity-Based Approval for Business Properties
A private commercial mortgage in Ontario is a short-term business property loan funded by a private lender (MIC or individual investor) — approved based on property equity and cash flow, with no income documentation required and no personal credit minimum. Private commercial mortgages fund in 5–10 business days at rates of 9–14%, ideal for bridge financing, lease-up, value-add, and time-sensitive acquisitions. lendsimpl — FSRA Brokerage #13763.
When to Use a Private Commercial Mortgage in Ontario
Bridge Financing — Buy Before You Sell
Private commercial bridge loans in Ontario fund a new commercial acquisition while you wait for your current property to sell. Terms: 3–18 months. No prepayment penalty on most private commercial bridges. Close in 5–10 business days.
Lease-Up Financing
New commercial construction or repositioned assets rarely qualify for bank mortgages until 85%+ occupied. Private lenders fund the lease-up period at 70–80% LTV, then the borrower refinances to institutional once stabilised.
Renovation / Value-Add
Renovating a strip mall, converting an office building, or upgrading an apartment complex? Banks refuse until the work is complete. Private lenders fund value-add scenarios and allow hold-back advances as renovations hit milestones.
Bank Declined or Restructuring
Failed debt service coverage ratio, maturing bank mortgage with declining property income, or personal credit event — private commercial lenders underwrite primarily on property equity and cash flow, not personal financial history.
Time-Sensitive Acquisitions
Won a competitive commercial bid with a 21-day closing? Institutional lenders cannot move that fast. Private commercial lenders in Ontario routinely fund in 5–10 business days with streamlined underwriting.
Special-Use Properties
Gas stations, car washes, restaurants, funeral homes, churches, and other special-use commercial properties are typically declined by banks. Private commercial lenders evaluate equity and location — not use restrictions.
Private Commercial Mortgage Eligibility — Ontario
| Criteria | Requirement | Note |
|---|---|---|
| Property equity (LTV) | Typically 65–75% LTV max | Core approval criteria |
| Property cash flow (DSCR) | 1.10x or flexible | Partially occupied accepted |
| Personal income verification | Not required | Equity-based underwriting |
| Personal credit score | No minimum | Deal-focused, not credit-focused |
| T4 / NOA documentation | Not required | B-lenders require; private do not |
| Property types | Office, retail, industrial, mixed-use, multi-unit | Incl. special-use |
| Loan term | 6–24 months typical | Bridge or transitional financing |
| Funding speed | 5–10 business days | Fastest Ontario commercial option |
Property Types — Private Commercial Mortgages Ontario
Private Commercial Mortgage Ontario — FAQ
What is a private commercial mortgage in Ontario?
A private commercial mortgage in Ontario is a short-term business property loan funded by a private lender — typically a Mortgage Investment Corporation (MIC), syndicated investors, or a high-net-worth individual — rather than a chartered bank or credit union. Private commercial mortgages in Ontario are underwritten primarily on property equity (LTV) and cash flow (DSCR), with no requirement for personal income documentation or minimum credit score. Rates range from approximately 9–14% depending on LTV, property type, and term. Typical terms are 6–24 months, used as bridge financing until the borrower refinances to a bank or B-lender.
What are the rates on private commercial mortgages in Ontario?
Private commercial mortgage rates in Ontario in 2026 typically range: Low risk (under 60% LTV, strong DSCR, stabilised): 9.00–10.50%. Mid risk (60–70% LTV, partially occupied, or value-add): 10.50–12.50%. Higher risk (70–75% LTV, special-use, or distressed): 12.50–14%+. Lender fees (broker + admin): typically 1.5–3% of the loan amount. Rates are higher than bank commercial mortgages (which sit at approximately 5.50–7.50%) but the trade-offs are equity-based approval, no income docs, and 5–10 day funding speeds.
What LTV will a private commercial lender in Ontario approve?
Most Ontario private commercial lenders approve up to 65–75% LTV depending on the property type and location: Standard commercial (office, retail, industrial) in Toronto/GTA: up to 70–75% LTV. Secondary markets (Ottawa, Hamilton, Kitchener, Barrie): up to 65–70% LTV. Special-use (gas station, restaurant, car wash): up to 60–65% LTV. Land or development: up to 50–60% LTV (land value only). At lendsimpl, we identify private commercial lenders based on your specific property and structure to maximise the LTV available.
How fast can a private commercial mortgage in Ontario close?
Private commercial mortgages in Ontario typically close in 5–10 business days from application to funding, vs. 3–6 weeks for a bank commercial mortgage. Speed is possible because: No institutional credit committee approval required. No personal income verification or NOA collection. Streamlined appraisal (desk or drive-by often accepted for time-sensitive deals). Legal documentation is simpler. Lender decisions are made by a principal or small credit committee. lendsimpl prepares a complete submission package upfront to maximise speed without compromising your deal structure.
Do I need income documentation for a private commercial mortgage in Ontario?
No — private commercial lenders in Ontario do not require personal income documentation (T4s, NOAs, T1 generals). Approval is based on: LTV ratio (how much equity does the property have?), Property cash flow / DSCR (can the property service the debt?), Property type and location (what's the marketability if default occurs?). Personal income, employment history, and debt ratios are not underwriting criteria for private commercial loans in Ontario. This makes private commercial mortgages particularly useful for self-employed owners, incorporated borrowers, foreign investors, and borrowers with complex income structures.
What is the difference between a private commercial mortgage and a B-lender commercial mortgage in Ontario?
B-lender commercial mortgages in Ontario (alt-lenders, credit unions): Require personal income docs (NOA, T1 generals). Require minimum 650+ credit score. Accept DSCR 1.15–1.25x minimum. LTV max 75%. Rate: prime + 1.5–3.5%. Terms: 1–5 years. Private commercial mortgages in Ontario: No income docs required. No credit score minimum. Accept DSCR 1.10x or below if equity compensates. LTV max 70–75%. Rate: 9–14%. Terms: 6–24 months (bridge-focused). Private is faster, more flexible, and has higher rates. B-lender is slower, more criteria-based, and has lower rates. lendsimpl assesses both paths and recommends the right fit for your timeline, exit strategy, and deal structure.
Does lendsimpl charge fees for arranging private commercial mortgages in Ontario?
All fees (lender fees, legal costs) are disclosed transparently in writing before you proceed, as required by FSRA — lendsimpl holds FSRA Brokerage Licence #13763.
Related Commercial Mortgage Resources
Private Commercial Mortgage · Ontario
Need a Private Commercial Mortgage in Ontario?
lendsimpl connects Ontario commercial borrowers with private lenders (MICs and individuals) across all commercial property types. No income docs. No credit minimum. Funded in 5–10 business days. FSRA Brokerage #13763.
FSRA Brokerage #13763 · All commercial property types · Ontario-wide