Self-Employed Private Mortgage in Ontario: Financing Based on Your Equity

Often, yes. Private lenders look mainly at the property's value, your equity and your exit plan rather than tax returns or a T4. Loan to value is generally up to 75% and depends on the property and lender. Some lenders still ask for basic information about your debts and income.

B-lenders and credit unions generally want documented income and a credit profile that fits their guidelines, and they price below private lenders. Private lenders focus on equity and your exit plan, usually with higher pricing and shorter terms. We compare both. See self-employed mortgages in Ontario.

Private rates depend on the property, loan to value, loan position (first or second), term and your exit plan, and they are generally higher than bank or B-lender pricing. Pricing is confirmed at application. Lender fees and broker fees, where they apply, are disclosed in writing before you commit.

Lenders typically ask for ID, property details, proof of ownership and equity, and your plan to exit the loan. Some also ask for basic information about your income and debts. We tell you what your lender needs at your assessment.

Often, yes. If your income is irregular or hard to document, a private lender may focus on the property's equity instead. Your credit and file are still reviewed, and requirements vary by lender.

The usual plan is to build a documented income history and strengthen your credit, then refinance to a B-lender, credit union or bank lender when you qualify. We plan the exit with you at the start. Timing depends on your income documents and credit.

Lender fees and broker fees may apply on private mortgages, and any fee that applies to your file is disclosed in writing before you commit.

Private lenders are not required to apply the bank mortgage stress test, but they set their own qualification rules, and many look closely at equity, the property and your exit plan.