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Private & second mortgages — options when the bank says no

Equity-based lending for tough situations: bruised credit, income that’s hard to prove, debt payoff, or stopping a power of sale. Fast, sensible, and always with a clear exit plan.

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Real second-mortgage outcomes for GTA homeowners who needed a fast, sensible option — and got one. Press play for the full story, or reach out and we’ll map yours.

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The full second-mortgage story — with sound.

Quick answer: A private or second mortgage is a shorter-term loan secured by your home’s equity, funded by alternative or private lenders who focus on the property rather than perfect credit or income. Rates and fees are higher than a bank, so it’s best used as a bridge — with a clear plan to move back to a prime lender.

When a private or second mortgage makes sense

  • The bank declined you for credit or income reasons.
  • You need to consolidate debt or access equity quickly.
  • You’re self-employed with hard-to-document income.
  • You’re facing arrears or a power of sale and need to stop the clock.

How it works

  • Second mortgage: sits behind your existing first mortgage, so you keep your good first-mortgage rate.
  • Private mortgage: funded by an individual or private fund, based mainly on your equity.
  • The exit plan: I always map how and when you’ll refinance back to a mainstream lender.

The honest trade-off

Private lending costs more — higher rates plus lender and broker fees — because it takes on more risk and moves fast. Used correctly, it’s a smart bridge that protects your home and your credit. Used carelessly, it’s expensive. I’ll only recommend it when it genuinely helps.

A lenders, B lenders and private — side by side

Almost everyone arrives having already decided which one they want, usually based on the rate. The rate is the least useful thing to decide on. What matters is which lender will actually read your file the way it needs to be read.

A lenders (banks) B / alternative lenders Private lenders & MICs
What the decision rests on Your income and credit Your income, read more flexibly The property’s equity
How income is proven Two years of assessed returns, T4s Bank deposits, contracts, corporate financials Rarely the deciding factor
Credit Strong required Recent blemishes tolerated Rarely decisive
Rate Lowest available A premium over bank rates Highest
Lender fee Generally none Usually Yes, plus broker fee
Speed to fund Slowest Moderate Days, when urgent
Typical term Full term, 1–5 years 1–3 years Usually 1–2 years
Best used as The destination The bridge The rescue — with an exit plan

Most people I meet belong one tier higher than they assume. Some are sitting in private lending when their file has quietly improved enough for a B lender. Others have written themselves off entirely and would qualify at a bank today, with the right documents in the right order. That is worth ten minutes of checking before you accept a higher rate.

Based on
Your home equity
Term
Usually 1–2 years (a bridge)
Cost
Higher rate + fees than a bank
AI-enabled FAQ

Private & second mortgages — your questions, answered

Real answers to the questions clients actually ask. Search or tap any question.

What is a second mortgage?
A second mortgage is a loan secured against your home that sits behind your existing first mortgage. It lets you access equity without touching — or breaking — your first mortgage.
What is a private mortgage?
A private mortgage is funded by an individual lender or private fund rather than a bank, based mainly on your home’s equity. It’s used when banks say no or when speed matters.
How much can I borrow?
It depends on your equity and the lender, but private and second mortgages commonly go up to around 75%–80% of your home’s value including your first mortgage.
Are the rates higher?
Yes. Private and second mortgages carry higher rates plus lender and broker fees because they take on more risk and fund quickly. They’re meant as a short-term bridge, not forever.
Can a private mortgage stop a power of sale?
Often yes. Fast equity-based financing can clear arrears and stop a power of sale, giving you time to stabilize and then refinance to a prime lender.
Do I need good credit or provable income?
No. Approval is driven mainly by your home’s equity, which is why private lending works for bruised credit and self-employed borrowers.
How fast can it fund?
Private files can often close in days when it’s urgent — much faster than a traditional bank approval.
What’s the exit strategy?
The goal is always to move you back to a mainstream mortgage once your credit, income, or timing improves. I build that plan with you from day one.
Will this hurt my credit?
Used to consolidate high-interest debt or clear arrears, it often helps your credit recover. I’ll structure it so you come out stronger.
Is my situation too difficult?
Rarely. Between second, private, and alternative lenders, most equity-backed situations have a solution. For deep second-mortgage help, see second mortgages in Ontario.

Related services

Debt consolidation · Self-employed · our second mortgage guide ↗

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Go deeper — the answer library

Straight answers to the questions people actually ask, with Ontario numbers and the part most sites leave out: when it’s the wrong move.

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