When banks say no, private and alternative mortgage lenders can provide the financing you need to pay off arrears and stop foreclosure — fast.
Private lenders are individuals or companies that provide mortgage financing outside of traditional banks. Unlike banks that focus heavily on credit scores and income verification, private lenders primarily look at the equity in your home. If your property is worth significantly more than you owe, a private lender may refinance your mortgage — even if you have poor credit, inconsistent income, or are already in foreclosure.
1. The private lender pays off your existing mortgage — including all arrears and legal fees.
2. Your foreclosure proceedings stop immediately because the debt to your original lender is cleared.
3. You now have a new mortgage with the private lender — typically a 1-2 year term.
4. During that term, you rebuild your financial situation and eventually refinance back to a traditional lender at a lower rate.
Private refinancing works best when you have significant equity in your home (typically 20-35%+ of the property's value). The higher interest rate is a short-term cost to stop foreclosure and save your home — not a permanent solution. We help you plan the exit strategy from day one.
Private mortgage refinancing moves much faster than traditional bank financing. Here's what the typical process looks like when you're facing foreclosure in Canada:
We review your property value, mortgage balance, arrears, legal fees, and overall financial situation. This tells us exactly how much private financing you need and whether you qualify based on your home equity.
We connect you with private lenders who specialize in foreclosure rescue financing. Each lender has different requirements — some focus on urban properties, others work with rural land. We match you with the right lender for your situation.
The private lender orders an appraisal to confirm your property value. Once the appraisal comes back and confirms sufficient equity, you receive a commitment letter with the mortgage terms, interest rate, and fees.
Your lawyer registers the new private mortgage, pays off your existing lender including all arrears and legal costs, and the foreclosure is dismissed. You now have a clean mortgage with one manageable monthly payment.
Private mortgage rates in Canada typically range from 8-15%, depending on your equity position, property location, and the loan-to-value ratio. While higher than bank rates, this is a short-term bridge — usually 1-2 years — while you rebuild your credit and financial standing to qualify for traditional bank refinancing at a lower rate.
Yes. Private mortgages typically include a lender fee of 1-3% of the loan amount, plus legal fees and an appraisal fee. These costs are usually rolled into the mortgage so you don't need cash upfront. We always disclose all costs before you commit to anything.
Yes — this is one of the biggest advantages of private lender financing. Private lenders focus on your home equity, not your credit score. Homeowners with credit scores as low as 400-500 can still qualify for a private mortgage to stop foreclosure, as long as they have sufficient equity in their property.
During your 1-2 year private mortgage term, you focus on rebuilding your credit and stabilizing your income. At the end of the term, we help you refinance back to a traditional bank or credit union mortgage at a significantly lower interest rate. This is the planned exit strategy from day one — private lending is a rescue tool, not a permanent solution.
Free assessment — we'll tell you if you qualify and what it would cost.
Common questions about the foreclosure process and your options.
A private lender provides a new loan secured against your home's equity, used to pay off the arrears or the existing mortgage and stop the foreclosure. Approval is based primarily on the equity in your property rather than your credit score, which is why it can work when a bank has declined you.
Often, yes. Private lenders focus on the equity in your home rather than your credit history, so refinancing can be possible even when you are in arrears or have a low credit score and traditional banks have said no.
Yes. Using a refinance to bring the mortgage current — paying the arrears, interest, and costs — can halt the process and let you keep your home, provided it is arranged before the sale is finalized. The earlier it is set up, the smoother it tends to be.
Private refinancing can usually be arranged much faster than a traditional bank mortgage — often within days to a couple of weeks. That speed can be decisive when a foreclosure or power-of-sale deadline is close and a bank's timeline is too slow to help.
Often it is a short-term bridge. A private refinance stops the immediate foreclosure and buys you time to stabilize your finances, then move into a conventional mortgage or sell on your own timeline once you are back on track. The goal is to protect your equity and your options.