Purchase on a short timeline
Purchase date and permanent financing in progress.
Equity, net funds and repayment.
The partner broker calculates available funds and total cost before presenting the request.
Book a quick callProject types.
Work before refinancing
Renovation budget and planned refinancing.
Maturing debt
Maturing debt with a sale or refinancing in progress.
Property being leased
Renovations, vacancy and leasing timeline.
Debt restructuring
Debts to replace and a defined repayment source.
What lenders review
Current value
The lender starts with the property’s current value. Future work and income are reviewed separately.
Available equity
Mortgages, taxes, fees, interest and reserves reduce the available equity.
Net funds
Net funds must cover the need after retained fees and interest.
Repayment plan
The expected sale, refinancing or cash injection must be documented and dated.
Loan terms.
Collateral
Current property valueFuture work or income is not automatically included in the value.
Term
Agreed durationThe term must allow enough time to sell, refinance or repay.
Position
First or second mortgageExisting mortgages and claims reduce the amount available.
Net funds
Calculated before signingFees, interest and reserves are deducted from the gross loan.
Request steps.
- Define the need and target date
- Confirm the property value
- List debts and mortgage positions
- Calculate available net funds
- Document the repayment plan
- Compare the terms received
What to prepare
- Summary of the need and target date
- List of mortgages, positions and payout balances
- Appraisal, purchase offer or evidence of value
- Evidence of down payment and available liquidity
- Detailed work budget or funding requirement
- Repayment plan with dates and supporting documents
Loan types.
| Loan type | When this loan type may apply |
|---|---|
| Private first mortgage | The lender is repaid before any lower-ranking mortgage. |
| Private second mortgage | The amount is calculated after the first mortgage and other claims. |
| Bridge loan until sale | A short-term loan repaid when the property is sold. |
| Bridge loan before conventional financing | The loan funds required work or documents before conventional financing. |
Preparing a request, step by step
All guides
Private loan: points to check
Rate, fees, security, maturity and repayment before signing.
Private loan fees: the full list
Opening, brokerage, legal, appraisal and renewal.
Repaying a private loan in twelve months
Three ways to repay and how long each takes.
Bridge loan between two transactions
Buying before selling: amount, term and real cost.
Second position security: implications
How lien position changes rate, amount and risk.
Comparing two private offers
A grid that puts two proposals side by side.
Common questions
When is private financing worth considering?+
When the timeline, property or request does not meet conventional lending criteria. Value, equity and repayment remain essential.
Does poor credit prevent a loan?+
Credit is part of the review. Its cause and effect must be explained.
How is equity measured?+
The lender deducts mortgages, taxes, fees, interest and reserves from the accepted value.
Can construction work be financed?+
Yes, when the budget, draws and completed value are documented.
Book a call about your private loan.
Property, debts, amount, target date and expected repayment.
Book a quick call