Private HELOC in Toronto — equity-based approval, no bank stress test.

A private HELOC is arranged through a licensed mortgage broker like lendsimpl, who connects you with MIC lenders (Mortgage Investment Corporations) and private mortgage companies operating in Ontario. Unlike banks, private HELOC lenders approve primarily on your home equity rather than your credit score, income or the stress test. lendsimpl is an FSRA-licensed brokerage (#13763) arranging private HELOCs across Toronto and Ontario.

Private lenders don't set the same credit score minimums as banks. They approve based on your property equity first, so borrowers with low scores, open collections, consumer proposals or a recent bankruptcy may still qualify with sufficient home equity. Terms depend on the lender and your file.

Private HELOC rates depend on your equity position (lower loan-to-value generally means a better rate), the property type and the lender selected. Current indicative rates are shown in the rates section of this page; your broker confirms the rate and any fees for your file in writing before you proceed.

Private HELOC lenders generally cap the combined loan-to-value (all mortgages plus the HELOC) at a share of your property's value, so you need meaningful equity. Properties in strong markets like the GTA may qualify at a slightly higher loan-to-value. More equity generally means better terms and a higher limit.

Private lenders don't require extensive income documentation or a credit file rebuilding plan, so the process is usually quicker than a bank HELOC. Timing depends on the lender, the valuation and your file, and your broker gives you a realistic timeline once your file is reviewed.

A bank HELOC is offered by banks and credit unions and requires a qualifying credit score, confirmed income, passing the B-20 stress test and meeting debt-ratio limits. A private HELOC is equity-based and is accessible to borrowers banks decline, but private rates are generally higher than bank rates and fees can apply.