Private mortgage lender Toronto: the honest GTA guide
When the bank cannot renew, the closing clock is ticking, or your income story does not fit A-lender boxes, private lending in the GTA is built around equity and a clear exit. This guide explains what a MIC-backed private mortgage costs in real dollars, how fast files fund, what Richview approves, and how to protect yourself before you sign.
The bank just declined your renewal. Or your closing date is nine days out and the deal you were counting on fell through. Or you're self-employed, the numbers on paper don't tell the real story, and every A-lender form asks the same questions in a way that doesn't fit your life.
That's usually the moment a borrower starts searching for a private mortgage lender in Toronto. It's also the moment the wrong lender can cost you a lot of money — or save your deal.
Richview Capital is an Ontario-licensed Mortgage Investment Corporation (MIC) that lends on residential properties across the Greater Toronto Area. This guide walks through what a private mortgage actually costs, how fast we can fund, what we approve and what we won't, and how a MIC differs from “a guy with extra cash.” No softening the uncomfortable parts: a private mortgage solves a problem the bank couldn't — and you should know exactly what you're paying to solve it.
Takeaways
- Private mortgage lenders fund deals that A-lenders won't — typically in 5–10 business days in the GTA.
- A MIC is an institutional private lender, regulated and pooled — meaningfully different from an individual lender.
- At Richview, 1st mortgage rates start from 6.99% and 2nd mortgage rates start from 10.99%, with file-specific pricing above the floor depending on LTV, property, and term.
- Approval is equity-driven: typical Richview LTV is up to 75% in the GTA on standard residential, and up to 65% on condos and properties outside the GTA (case by case).
- Common uses: bridge financing, missed renewals, debt consolidation, self-employed income, newcomers to Canada.
- Always plan your exit — most private mortgages are 6–12 month bridges back to A or B lenders.
- In Ontario, FSRA regulates mortgage brokers — verify yours before signing anything.
What Is a Private Mortgage Lender? (And Why GTA Borrowers Use One)
A private mortgage lender lends its own capital — or pooled investor capital — outside the federal banking system. Private lenders aren't bound by the same federal qualification rules as the big banks, which means they can underwrite based on the property and the situation rather than ticking off the bank's checklist. That flexibility is the whole product. It's also why a private mortgage costs more than a bank one.
The A / B / C lender ladder, explained
Canadian mortgage lenders fall into three broad tiers:
- A lenders — the big banks and federally regulated institutions. Lowest rates, strictest qualification (OSFI's B-20 stress test, fully documented income, strong credit).
- B lenders — alternative regulated lenders. Mid-tier rates, more flexibility on income documentation and credit, still institutional.
- C / private lenders — equity-driven lenders. Highest rates and fees, fastest decisions, broadest flexibility on borrower profile.
MICs sit inside the C tier but operate institutionally — pooled capital, standardized documents, regulated brokers.
Where private lenders get their money
Private mortgage capital doesn't come from public deposits the way bank money does. It comes from investor capital (pooled in MICs or syndicates), business or holding company funds, or in smaller cases an individual's own money. The funding source matters because it shapes how predictable the lender is — pooled institutional capital is steadier than a single individual's cashflow.
When a private mortgage actually makes sense in the GTA
- Bank renewal denial — your A-lender won't renew and you need a bridge while you reset.
- Closing-day bridge — your old home hasn't closed but the new one is funding.
- Self-employed borrower — your income is real, but the bank's calculation doesn't capture it.
- Newcomer to Canada — you have a down payment and equity story, but no Canadian credit history yet.
- Debt consolidation under pressure — you have equity in your home and unsecured debt that's getting ahead of you.
If your situation fits one of these, private lending is a tool, not a trap. The trick is using it deliberately.
What Is a Mortgage Investment Corporation (MIC) — and Why It's Different From a “Private Lender”
“Private lender” is an umbrella term that covers everything from a sophisticated MIC to an individual with a HELOC and a hunch. Those two lenders behave very differently, and as a borrower it matters which one you're sitting across from.
How a MIC pools investor capital to fund mortgages
A Mortgage Investment Corporation is a Canadian corporate structure defined under Section 130.1 of the Income Tax Act. It pools capital from multiple investors and lends that capital out as residential and commercial mortgages. The MIC's portfolio is diversified across many loans, the underwriting is institutional, and the lender's stability doesn't hinge on any one investor's personal financial situation. For the borrower, that means the lender on the other side of your file is a regulated company, not a single person whose own circumstances can affect whether your renewal goes smoothly. For a plain-language overview of the structure, see what is a MIC on this site.
MIC vs. individual private lender: what changes for the borrower
| Borrower experience | MIC | Individual private lender |
|---|---|---|
| Decision speed | Standardized — 24–72 hours typical | Variable — depends on the individual |
| Documents | Consistent, broker-friendly | Often ad-hoc |
| Funding stability | Pooled capital, predictable | Tied to one person's cash position |
| Renewal predictability | Policy-based | Personal — can change at the lender's whim |
| Product range | 1sts, 2nds, bridge, sometimes construction & commercial | Often narrow |
| Regulatory layer | FSRA-licensed brokers, formal compliance | Highly variable |
Both are technically “private.” Only one of them feels like dealing with an institution.
How MICs are regulated in Ontario
In Ontario, mortgage brokers and brokerages are regulated by the Financial Services Regulatory Authority of Ontario (FSRA) under the Mortgage Brokerages, Lenders and Administrators Act, 2006. Any deal you place should run through a FSRA-licensed broker. You can verify a broker's licence on the FSRA website before signing anything.
How a Private Mortgage Lender in Toronto Qualifies You
Private lending is equity-driven, not income-driven. That doesn't mean income and credit are irrelevant — it means they aren't the gate.
Equity is the deal — LTV you can expect
Loan-to-value (LTV) is the size of the mortgage divided by the value of the property. Richview's published LTV caps for GTA residential lending:
- Standard GTA residential (detached, semi, town): up to 75% LTV
- Condominiums and properties outside the GTA: up to 65% LTV (case by case)
- Construction (1st or 2nd): up to 65% of end value
- Land 1st mortgages: 65% LTV
The cleaner the property and the lower the LTV, the better the rate and the faster the decision.
What we look at (and what we don't)
Equity is the foundation, but underwriting also weighs property condition and marketability, location in the GTA, exit story, and credit/income directionally — not to A-lender documentation standard.
What we don't fund
Richview generally doesn't fund: rural properties beyond the GTA commuter belt; leasehold or mobile homes; LTVs above policy caps; properties with title defects or active enforcement; borrowers without a workable exit plan. If your file fits, we move quickly. If it doesn't, we'll tell you on the first call.
Real Numbers — What a Private Mortgage Actually Costs in the GTA
Rate ranges (Richview's published rates)
Rates move with the broader interest rate environment, and final pricing always depends on the specifics of the file. Richview's published starting rates:
| Product | Rate (from) | Notes |
|---|---|---|
| 1st mortgage (residential, GTA) | from 6.99% | Up to 75% LTV; 65% on condos and outside-GTA |
| 2nd mortgage — under 65% LTV | from 10.99% | 6–12 month term, open or closed |
| 2nd mortgage — 65% LTV and above | from 11.99% | 6–12 month term, open or closed |
| Bridge financing | from 8.99% | 1–90 day term |
| Construction 1st mortgage | from 9.99% | Up to 65% of end value |
| Construction 2nd mortgage | from 11.99% | Up to 65% of end value |
| Land 1st mortgage | from 7.99% | 65% LTV |
| HELOC (1st mortgage) | from 7.99% | Open term |
| HELOC (2nd mortgage) | from 11.99% | Open term |
| Commercial | from 9.99% | Case-by-case underwrite |
| Refinance (residential) | from 6.99% | Up to 75% LTV in GTA |
Rates are starting points. Actual pricing depends on LTV, property type, term, and file strength. Subject to change at any time.
Itemized fee breakdown
| Cost line | Richview / typical range | Notes |
|---|---|---|
| Lender fee — 1st mortgage purchase | 2% of loan amount | Paid to the lender; deducted from advance |
| Lender fee — 1st mortgage refinance | from 2.25% | |
| Lender fee — 2nd mortgage | 2% | |
| Lender fee — bridge | 1–2% | |
| Lender fee — construction (1st or 2nd) | 2% | |
| Lender fee — HELOC | 2.5% | |
| Broker fee | typically 1–2% of loan amount | Set by the licensed broker, not the lender |
| Legal fees | typically $1,500–$3,500 | Borrower-side and lender-side lawyer where applicable |
| Appraisal | typically $400–$700 | Required on most files |
| Title insurance | typically $250–$500 | Standard |
Worked example: $500,000 1st on a $1M Vaughan detached, 12-month term
Representative GTA 1st at 50% LTV, 12-month interest-only. Richview's 1st rate starts from 6.99%, with file-specific pricing above the floor.
| Item | Lower-end pricing | Higher-end pricing |
|---|---|---|
| Loan amount | $500,000 | $500,000 |
| Indicative rate (annual) | 6.99% | 8.99% |
| Lender fee (2% purchase) | $10,000 | $10,000 |
| Broker fee (assumed 1%) | $5,000 | $5,000 |
| Legal (estimate) | $2,500 | $2,500 |
| Appraisal | $600 | $600 |
| Title insurance | $350 | $350 |
| Year 1 interest (interest-only) | ~$34,950 | ~$44,950 |
| Total Year 1 all-in cost | ~$53,400 | ~$63,400 |
| Monthly payment (interest-only) | ~$2,913 | ~$3,746 |
Most GTA private 1sts are structured interest-only because the goal is a 12-month bridge, not amortization.
Side-by-side: A vs. B vs. C/MIC (illustrative)
| A lender | B lender | C / MIC (Richview) | |
|---|---|---|---|
| Indicative rate | ~5% range | ~7% range | 1st from 6.99%; 2nd from 10.99% |
| Typical lender fee | $0 | ~1% | 2% on a 1st purchase; varies by product |
| Qualification | B-20, full docs | Flexible income, mid credit | Equity-driven |
| Decision speed | 1–3 weeks | 1–2 weeks | 24–72 hours |
| Best for | Clean files | Stretched but documentable | Time-sensitive or non-conforming |
A and B rates above are illustrative only and move with the market. Pick the cheapest tier you actually qualify for.
How Fast Can a Private Mortgage Lender Fund in the GTA?
A clean GTA private file typically funds in 5–10 business days from a complete application. Timeline depends on appraisal booking, title search, competing charges/postponements, and lawyer responsiveness.
What to have ready on day one
- Government-issued ID for all borrowers
- Current mortgage statement (if refinancing)
- Most recent property tax bill
- Property insurance binder naming the lender as loss payee
- Lawyer name and contact
- Most recent two months of bank statements
- Self-employed: recent NOA and brief business description
When private isn't actually faster
If you have 30+ days and your file is documentable, a B-lender will almost always be cheaper and only marginally slower. Use private when speed, flexibility, or non-conforming circumstances genuinely require it.
First vs. Second Private Mortgages
Private 1st: replaces your existing mortgage entirely — renewal denial, small legacy mortgage to absorb, or a clean reset. Private 2nd: sits behind your A or B mortgage — debt consolidation, renovation equity takeout, short-term cashflow. Richview 2nd pricing from 10.99% under 65% combined LTV and from 11.99% at 65% and above, 2% lender fee, 6–12 month terms. Your A-lender may need a formal postponement; your lawyer coordinates.
Bridge, Construction, Land, HELOC, and Commercial in the GTA
- Bridge — 1–90 days, from 8.99%, lender fee 1–2%
- Construction — 1st from 9.99%, 2nd from 11.99%, 2% fee, up to 65% of end value
- Land 1st — 65% LTV, from 7.99%, 2% fee
- HELOC — 1st from 7.99%, 2nd from 11.99%, 2.5% fee, open term
- Commercial — case-by-case, from 9.99%
The Honest Risks — If Things Go Wrong
Power of sale (Ontario): if a borrower defaults and the situation can't be resolved, enforcement is typically power of sale under the Mortgages Act. A Notice of Sale is issued; the borrower has a redemption period (often around 35 days from notice) to cure. If not cured, the property is sold; surplus equity after mortgage and costs returns to the borrower. It's a structured legal process — know the timeline so you can act.
Renewal risk: most private mortgages are 6–12 months. Underwrite the exit at the start. Rolling private year after year at higher cost is the “trap” people warn about — we work to prevent it by refusing files without a credible refinance path within 12–18 months when that's the reality.
Red flags when shopping lenders
- No FSRA licence number or refusal to disclose
- Fees not in writing on the commitment
- Pressure to sign before your lawyer reviews
- Verbal renewal promises not in the contract
- Cash or e-transfer outside lawyer trust
Your Exit Strategy — Back to a Bank
To qualify back to A or B at renewal: clean payment history on the private mortgage; stabilized documented income (two years NOAs is the gold standard for self-employed); improved credit; marketable property. Timeline: by month 1 know your target lender's criteria; month 6 pull credit and fix issues; month 9 start the refinance application — don't wait until month 11.
How to Choose a Private Mortgage Lender in Toronto
Ask: FSRA licence numbers for broker and lender; rate fixed for term; all fees in writing; interest-only vs amortizing; prepayment and penalties; renewal terms; default process; independent lawyer review. Use a licensed mortgage broker for disclosure obligations and access to multiple lenders. Have your own lawyer review the commitment ($1,500–$3,500 is cheap insurance).
Frequently Asked Questions
How fast can a private mortgage lender in Toronto fund?
Most clean GTA files: 5–10 business days from a complete application. Rush can be faster; title or appraisal issues slow things down.
What credit score do I need?
No hard minimum on most private mortgages — approval is equity-driven. Very low scores can affect rate, fee, and LTV.
Maximum LTV on a private 1st in the GTA?
At Richview: up to 75% standard GTA residential; 65% condos and outside-GTA (case by case); construction up to 65% of end value.
Interest-only or amortizing?
Most GTA private mortgages are interest-only short-term bridges. Amortizing exists on some files.
MIC vs individual private lender?
A MIC pools capital under the Tax Act and lends institutionally; an individual lends personal money — less standardized experience.
Regulated in Ontario?
Brokers and brokerages are FSRA-regulated under MBLAA. Private mortgages don't use federal bank qualification rules but flow through licensed brokers.
Will private hurt my credit?
Not inherently — missed payments do. On-time payments help.
Can't renew at term end?
Refinance to B/A, renew with private at then-current terms, or sell. Plan on day one.
Commercial or construction?
Yes — case-by-case underwrites, different from standard residential 1sts.
Hard money vs private mortgage?
“Hard money” is US terminology; Canadian private mortgages sit under Ontario/FSRA frameworks.
Can I prepay a private mortgage without penalty?
Prepayment terms vary by lender. Many private mortgages allow prepayment after a minimum interest period (often three months) with a small penalty or notice requirement. Confirm exactly what applies in your commitment letter before signing.
How do private mortgage lenders make money?
Through interest on the mortgages they hold and the fees charged at origination. In a MIC, that income is paid out to the corporation's investors as dividends.
Can I hold a private mortgage in my RRSP or TFSA?
Investors can sometimes hold MIC shares inside registered accounts, depending on the MIC's structure and the account custodian. That is an investor-side question, not a borrower-side one — speak with a licensed advisor if you are investing, not borrowing.
Where Richview Capital Comes In
Richview is a licensed Ontario MIC lending on residential property across the GTA. We approve on equity and your real situation, quote dollars and timelines clearly, and say no when a file isn't the right fit.
See if your Toronto / GTA file fits
Book a short call — we'll tell you whether private is the right move, what it costs, and how fast we can fund.
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This article is general information only—not financial, legal, or tax advice. Published rate and fee figures are starting points and illustrations; actual pricing depends on underwriting and changes over time. LTV caps, approvals, and products vary by property and file. Not an offer of credit.
