Purchase on a short timeline
Purchase date and permanent financing in progress.
The planned repayment justifies the loan.
The partner broker calculates available funds and total cost before presenting the request.
Book a 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.
What gives a lender pause
Incomplete repayment plan
An intention to refinance is insufficient. Conditions and timing must be documented.
Tight equity
Interest, fees and contingencies can reduce the amount actually available.
Unidentified claims
Mortgages, taxes and other claims must be known before calculating net funds.
Unrealistic timeline
Timing depends on the documents, professionals and lender conditions.
What sets the terms
Collateral
Future work or income is not automatically included in the value.
Term
The term must allow enough time to sell, refinance or repay.
Position
Existing mortgages and claims reduce the amount available.
Net funds
Fees, 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.
What repayment should be planned?+
Document a dated sale, refinancing or cash injection.
Is a second mortgage possible?+
Yes, if the first lender agrees and enough equity remains.
Book a call about your private loan.
Property, debts, amount, target date and expected repayment.
Book a call