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Private Mortgages in Toronto Based on Home Equity

EquityRich approves private mortgages based on your home's equity, not your income, age, or credit score. We arrange first and second mortgages with funding available in as little as a week, giving homeowners fast, flexible financing without the strict requirements of traditional banks.

What Is a Private Mortgage in Toronto?

A private mortgage is a loan secured against your home and funded by a private or alternative lender instead of a chartered bank. With Toronto property values among the highest in Canada, even homeowners who can’t satisfy a bank’s income or credit tests usually hold enough equity to borrow against. EquityRich lends on that equity directly, and where a partner lender offers better pricing or a structure we don’t carry in-house, we can place the deal there too as a licensed brokerage. These loans are designed for individuals who may not meet the strict requirements of traditional lenders, such as high credit scores or steady income. 

At EquityRich, we focus solely on the equity in your property, offering you a loan based on your home’s value rather than your personal financial history.

With our private mortgage insurance options, we can also help you protect your investment, ensuring you get the financial security you need. Private mortgage insurance (PMI) helps mitigate the risk for lenders, allowing us to offer more competitive terms, including higher loan amounts, with Second Mortgages available.

How Equity-Based Approval Works

Banks start with your income and credit. We start with your property. After a quick valuation of your home, we look at how much equity sits behind any existing financing, then base the loan on that figure rather than on debt-service ratios. Most files need only proof of ownership, a recent mortgage statement, and confirmation that property taxes are current.

 

Typical terms for our Toronto private mortgages:

  • First and second mortgages up to 80% loan-to-value on qualifying GTA properties.
  • Open and short-term options, commonly 12 months, with interest-only payments to keep monthly cost down.
  • Funding in as little as 5 to 7 business days once the appraisal and title search clear.
  • Approval driven by equity, so a low credit score, self-employment, or no provable income won’t sink the deal.
A second mortgage lets you keep a low-rate first mortgage in place and borrow against the equity that’s built up behind it, which is often the cheaper route for owners who locked in a good first rate years ago.

Benefits of a Private Mortgage

  • No credit check required — approval based on property equity
  • Flexible terms tailored to your unique financial situation
  • Quick closing — funds available in as little as 48 hours
  • Available for first and second mortgages
  • No income verification required
  • Competitive equity-based lending rates

Who Qualifies for a Private Mortgage in Toronto

Most of our borrowers are 40-plus and hold strong equity but can’t tick a bank’s boxes: self-employed owners who write down income, retirees living on fixed cash flow, newcomers without Canadian credit history, or anyone carrying a recent credit bruise. The single requirement is real equity in a GTA property. We routinely fund first and second mortgages for debt consolidation, tax arrears, business capital, renovations, financing a basement apartment or laneway suite, and stopping a forced sale. If your situation calls for a no-documentation structure, our no-income mortgage program is built for exactly that.

The Private Mortgage Process

1

Consultation and Eligibility Assessment

The process begins with a consultation where we assess the equity in your property. We'll explain how a private mortgage works, discuss your options, and help you determine if this solution is right for you. Since there are no credit checks or income verification required, we can move quickly to help you.

2

Property Appraisal

We work with professional appraisers to determine the market value of your home. This will help us calculate how much equity you can access through a private mortgage. Typically, we can offer you up to 70-75% of the value of your home, depending on the property and the loan.

3

Loan Offer and Terms

After the property appraisal, we'll present you with a loan offer and clearly explain the terms, including interest rates, loan amount, and repayment schedule. With our private mortgage insurance, we also offer additional protection to secure your investment.

4

Signing and Disbursement

Once the terms are agreed upon, we move forward with the paperwork and disburse the loan according to the agreed-upon method. Whether you choose a lump sum, line of credit, or regular payments, you'll have the flexibility to use the funds however you need.

5

Repayment

Repayment for private mortgages is typically required when the home is sold, or you move out, but we offer flexible solutions to meet your needs. We also offer first and second position mortgages to ensure we have the right option for your financial situation.

Why Homeowners Choose EquityRich

We’re a direct equity-based lender first, which means many Toronto files are funded with our own money and decisions don’t wait on an outside committee. When a partner lender can beat our pricing or offer a structure we don’t carry, our brokerage licence lets us place your mortgage there instead, so you get the better deal either way. If you’re weighing different alternatives, our overview of alternative mortgage lenders explains how the options compare.

Pricing on a private mortgage reflects the risk and the loan-to-value, so rates sit above what a bank charges a fully-qualified borrower. For most homeowners, the point isn’t the lowest rate, it’s getting timely access to equity that a bank won’t release. We quote the rate, lender fee, and term in writing up front, with no surprises at closing.

The process is straightforward: a short conversation about your goals and property, an application, an appraisal and title search, then funding. Many borrowers move from first call to funded inside a week. Start your application or call us to talk through your numbers.

Quick Facts

  • Max LTV Up to 75%
  • Credit Check Not Required
  • Funding Speed As fast as 48 hrs

Ready to Get Started?

No credit check. No income verification. Funds in as little as 48 hours.

Get Free Assessment +1-647-667-9957

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