If your bank has just said no, you still have options and you have not done anything wrong. Rob Zanet, Sandra Zanet and Gina Smith of Team Zanet Mortgage Specialists have arranged financing for more than 20 years across Windsor, Tecumseh, LaSalle, Leamington, Amherstburg, Harrow, Colchester, Lakeshore, Belle River and Essex County. Private mortgage lenders in Ontario ask a different question than a bank does: they look first at the property and the equity behind it. Tell us the real situation and we will answer honestly. Browse all our Windsor-Essex mortgage services.
Top 3 Reasons to Consider a Private Mortgage
Approval Rests on the Property and Your Equity
Banks follow federal stress-test rules and rigid documentation standards, so a solid file can fail on a technicality: a credit blemish, an employment gap, or income the bank’s forms cannot capture. Private lenders weigh the property, its marketability and the equity behind the loan. Credit and income still get reviewed, but they are not the whole test.
Speed When a Deadline Is Closing In
Private financing usually moves faster than institutional approval, because there is less paperwork and no bank underwriting queue. When a closing date is days away or a commitment has been pulled, that difference is the point. Timelines depend on the lender, the appraisal and your lawyer, so we promise none. Bring us the deadline early and we will tell you plainly whether it is achievable.
A Short-Term Bridge Back to Traditional Financing
A private mortgage is a bridge, not a destination. It buys time to repair credit, complete a tax year of self-employed income, finish a renovation or sell a property. Bridge financing in Ontario also covers a purchase that closes before your sale does. Either way, the goal is a return to an A or B lender. See our Windsor mortgage rates page.
How private lending is meant to work
A private mortgage is a bridge, not a destination
A bank mortgage assumes you renew. A private mortgage assumes you leave — which is why the exit gets written on day one, before you sign anything.
You have not done anything wrong. A solid file can fail on a technicality.
- Income the bank’s forms cannot capture
- A credit blemish or an employment gap
- A firm closing date and a commitment that stalled
- A property institutional lenders decline on policy
- High-interest debt or arrears registered on title
Approval leads with the property and the equity behind it. Credit and income are supporting context, not the whole test.
- Short by designoften around a year, and frequently interest-only
- Costs more than a bank mortgagerate above bank pricing, plus lender, brokerage, legal and appraisal fees
- Every fee in writing before you commit
- The exit plan is the active filefrom the week the funds advance, not the final month
One of these should be identified and dated before the mortgage funds.
- Refinance to an A or B lenderthe most common exit, planned well before maturity
- Requalify conventionallyonce credit has recovered
- Requalify on better documentationanother filed tax year, cleaner books
- Sell on your own timelinea controlled sale protects equity better than a forced one
The honest version: private lending is a legitimate, regulated tool, and it costs more and runs shorter than a bank mortgage. Anyone who glosses over that is setting you up for a difficult renewal. If the payment is not affordable, or the equity is not there, the answer is not a private mortgage — and we will tell you so in the first conversation.
Who Private Lending Actually Suits
Private lending is not for everyone, and a broker who says otherwise is not doing their job. It suits situations where the property is sound, equity exists, and the obstacle is the lender’s rulebook rather than your ability to carry the payment.
Self-Employed or Commission Income
Contractors, tradespeople, greenhouse operators, drivers and business owners often earn well while showing modest taxable income after legitimate write-offs. Banks read the notice of assessment and stop there. Private and alternative lenders can consider bank statements and contracts. If this is you, start with our self-employed mortgage options.
Bruised or Rebuilding Credit
A separation, an illness, a business that closed, a collection you did not know about. Credit damage happens to careful people, and we will not lecture you about it. Private lenders can look past a score that disqualifies you automatically at a bank, provided the equity supports the loan. Many such files later graduate through our bad credit mortgage solutions.
A Firm Closing Date the Bank Will Not Meet
The agreement is firm, the deposit is committed, and the institutional approval has stalled or collapsed. This is the most time-sensitive file we handle. Send us the agreement and the closing date and we will assess quickly whether private financing can fund in time.
Unusual Properties Banks Decline
Rural acreage near Harrow or Colchester, mixed-use buildings with a storefront below, large farm parcels, log or non-standard construction, well and septic properties, or homes mid-renovation. Institutional lenders decline these on policy, not merit. Private lenders assess the property on its merits. Knowing what sells across the communities we serve shapes how we present the file.
Debt Consolidation or Tax Arrears Where Equity Exists
High-interest cards, a growing line of credit, or CRA arrears registered against title can often be addressed when there is equity in the home. Depending on the amount and what already sits on title, that may point to a second mortgage in Windsor-Essex instead of replacing your first mortgage. We will explain both and the trade-offs.
How Private Mortgages Differ From Bank Mortgages
A private mortgage is a legitimate, regulated financing tool, and it also costs more and runs shorter than a bank mortgage. Anyone who glosses over that is setting you up for a difficult renewal.
The differences that matter
A bank mortgage and a private mortgage, side by side
Same registration on title, very different instrument. Six differences do most of the work.
| Bank or credit unionAn institutional “A” lender | Private lenderAn individual, investor group or mortgage investment corporation | |
|---|---|---|
| What the approval rests on | Income, credit score, debt ratios and the federal stress test. A solid file can fail on a technicality. | The property first — its value, its marketability, and the equity behind the loan. Credit and income are reviewed as supporting context. |
| Interest rate | The lowest pricing available, for borrowers who fit the rules. | Meaningfully above bank rates, and it varies by lender, equity, property type and risk.No honest broker quotes a number before reading your file. |
| Term length | Commonly one to five years or more, with amortised payments. | Short, often around a year, and frequently interest-only. The short horizon is deliberate. |
| Fees | Fewer of them. | Lender and brokerage fees, legal costs and an appraisal, usually paid from the advance.Every fee on your file is disclosed in writing before you commit, as FSRA rules require. |
| How much they will lend against the value | Higher, where the borrower qualifies — and insurable below a certain down payment. | More conservative. That equity cushion is the lender’s protection, so less equity means fewer willing lenders, higher pricing, and sometimes no workable deal. |
| What happens at maturity | It assumes you renew. | It assumes you leave. There should be a documented plan to refinance, requalify or sell, written on day one. |
Reading the table: a private mortgage is a legitimate, regulated financing tool. It is also more expensive and shorter than a bank mortgage, and it works only when there is a route back to conventional lending. Pricing, fees and lending limits differ by lender and by file — the numbers for your situation come after we read it.
The Exit Strategy Matters More Than the Approval
This is the part we care about most, and it separates a responsible brokerage from someone who only wants to place a loan. A private mortgage should be a bridge to somewhere better, and we build that bridge before you sign.
- Rebuilding credit during the term: Paying the mortgage on time, keeping revolving balances low and letting older items age all move a score in the right direction. Twelve consistent months changes what lenders will consider at renewal.
- Restructuring income documentation: For self-employed borrowers, one more filed tax year, cleaner bookkeeping or a different way of drawing income can turn a declined file into an approvable one.
- Refinancing to an A or B lender at renewal: The most common exit. We review your file well before maturity so a move to a B lender mortgage or back to prime is planned, not rushed. See our mortgage renewal guidance.
- Selling if that is the right answer: Sometimes the property no longer fits, and a controlled sale on your own timeline protects your equity better than a forced one. We will say so even when it means we place no mortgage. Run the numbers with our mortgage payment calculator.
Where this leads
Your situation, and the exit that usually goes with it
Private lending suits some situations and not others. Pick the one closest to yours to see what a private term would be buying time for — and how borrowers in that position typically get back to conventional financing.
One caution: these are the patterns we see, not predictions about your file. What is actually workable depends on the equity in the property, what is already registered against title, and whether the payment is comfortably affordable. If it is not, private lending is the wrong tool and we will say so.
The Process Step by Step
01. The Conversation and Equity Review
We start with a call, not a form. You tell us what happened, what the deadline is, and what is registered against the property. We look at the equity available and give a candid read on whether private financing is workable. If it is not, you hear that in the first conversation.
02. Property Valuation and Lender Matching
Because the property is the security, its value and marketability drive everything. An appraisal is ordered, and we present your file only to lenders whose criteria genuinely match it. Appetites differ for rural land, mixed use and loan-to-value, so matching correctly saves days you may not have.
03. Commitment, Conditions and the Lawyer
When a lender issues a commitment, we review every term with you: rate, fees, term length, payment structure and the conditions to satisfy. Nothing gets buried. Your lawyer handles title, registration and payout of anything being cleared.
04. Funding and the Exit Plan in Motion
Funds advance through your lawyer and the immediate pressure lifts. That same week the exit plan becomes the active file: what needs to improve, in what order, and when we reconnect. We track the maturity date and reach out ahead of it.
Why Homeowners Bring These Files to Team Zanet
More Than 20 Years and Three Brokers on Your File
Rob Zanet, Sandra Zanet and Gina Smith have worked in Windsor-Essex mortgages for over two decades, so they have seen your situation before and will not react to it. Three licensed brokers means your file stays covered when a deadline will not wait. Meet them on our about Team Zanet page.
Lender Relationships Through Indi Mortgage
We operate under Indi Mortgage, FSRA licence number 12403, which gives us a broad lender panel including private and alternative lenders alongside prime institutions. That range works both ways: it helps place a difficult file now, and it lets the same brokerage move you back to conventional financing later.
Local Windsor-Essex Property Knowledge
In private lending the property is the security, so understanding it is not a nicety. We know how values behave in different neighbourhoods, how rural Essex County acreage is viewed, and which property types make lenders hesitate. See our coverage across Windsor, LaSalle and Tecumseh and Lakeshore and Belle River.
Private Mortgage Questions We Hear Most
What is a private mortgage lender?
A private mortgage lender is an individual, an investor group or a mortgage investment corporation lending its own capital secured against real estate rather than a bank or credit union. Because they are not bound by the same federal qualification rules, they assess a file on the property and the equity behind it. They are accessed through licensed brokerages, and the mortgage is registered on title.
How fast can a private mortgage close?
Private financing is generally faster than institutional approval, because there is less documentation and no underwriting queue, though no timeline is guaranteed. The pace depends on the appraisal, the lender and your lawyer. Files with a firm closing date should reach us as early as possible. Tell us the deadline first and we will give you an honest read.
What interest rate should I expect on a private mortgage?
Private rates sit above bank rates, and the specific rate depends on your equity position, the property type and location, the loan-to-value and the lender’s view of risk. Fees are separate from the rate and also vary. Anyone quoting a firm number before reading your file is guessing. Once we have your details we put the full cost in writing.
How much equity do I need for a private mortgage?
Private lenders lend against a portion of the appraised value and keep a deliberate equity cushion, so more equity generally means more interested lenders and better pricing. There is no universal threshold: it varies by lender, by property type, and by whether the mortgage sits in first or second position. The practical answer comes from an appraisal and a review of title.
Why the equity question comes first
What equity actually changes
Private lenders lend against a portion of the appraised value and keep a deliberate cushion behind it, because that cushion is their protection. How much equity sits in the property is what moves everything else.
Thin equity
- Few lenders willing to look at it
- The highest pricing, if any offer comes
- Sometimes no workable deal at all — and you should hear that plainly rather than after weeks of hope
Enough to work with
- A workable file, provided the lender is matched to the property
- Appetites differ for rural land, mixed use and position on title, so matching correctly saves days
- Fees and legal costs can usually be paid from the advance
Strong equity
- More lenders interested, which means they compete
- Better pricing and more flexible terms
- More room to clear arrears or high-interest debt in the same transaction
There is no universal threshold. How much equity is enough varies by lender, by property type and location, and by whether the mortgage sits in first or second position. The practical answer comes from an appraisal and a review of what is registered against title — which is where our first conversation goes.
Will a private mortgage hurt my credit?
Having a private mortgage does not damage your credit by itself. Payment history is what counts, and a private mortgage paid on time builds a positive record the same way any other mortgage would. Many borrowers use the term to stabilise their finances, clear high-interest debt and let a score recover. Missed payments do hurt, which is why the payment has to be affordable.
How do I get out of a private mortgage?
You exit by refinancing to an A or B lender, by qualifying conventionally once credit or income documentation improves, or by selling. The exit should be planned at the outset and worked on throughout the term, not left to the final weeks. We track your maturity date and start early. Sometimes the interim step is restructuring into a second mortgage first.
Talk to a Licensed Broker Before the Deadline Gets Closer
If there is a date on the calendar, one conversation today is the most useful thing you can do. You will not be judged or pressured, and you will get a straight answer about whether private financing fits. If a better option exists, including a second mortgage or a return to conventional lending, we will point you there. Earlier in the journey? See our first-time home buyer resources or contact page.
