Your credit history doesn't have to define your options today.
Bankruptcies, consumer proposals, collections, and low credit scores don't automatically disqualify you from mortgage financing. Private lenders make decisions based primarily on property equity, not credit score.
Is This Right For You?
Situations where private lending may help
- You were discharged from bankruptcy in the last 2–7 years and banks still won't consider your application
- You completed a consumer proposal and are now rebuilding but don't yet qualify for bank financing
- You have collections, judgements, or significant derogatory items on your credit report
- Your credit score is low due to past circumstances but your current financial situation has stabilized
- You've missed mortgage or car payments in the past and your current lender has flagged your file
- You need short-term financing to stabilize, with a plan to qualify conventionally within 1–2 years
Typical Terms Overview
Rates shown are indicative ranges for general information only. Your actual rate will depend on property type, location, loan-to-value ratio, borrower profile, and other underwriting factors. Rates are subject to change without notice.
The Process
How credit-event mortgage approval works
We assess the full context of your credit history — not just the number — and match you with lenders equipped to help.
Full credit and equity review
We pull your credit bureau and review the full picture — what happened, when, and what your current situation looks like. We then assess your property equity to determine what's possible.
Honest assessment
We tell you whether a private mortgage is viable given your credit history and equity. If it's not the right solution, we'll tell you that too and explain why.
Lender matching
Different private lenders have different tolerance levels for credit events. We match your file to lenders who are specifically experienced with credit-challenged borrowers.
Funding and rebuilding plan
Once funded, your broker can work with you on a plan to improve your credit profile during the term so you have conventional lending options when the private mortgage matures.
What Lenders Consider
Key factors in credit-challenged applications
Type and recency of credit event
A discharged bankruptcy from five years ago is treated very differently from an active bankruptcy or a consumer proposal filed last year. The age and severity of credit events matter significantly.
Current credit behaviour
How have you managed credit since the event? Consistent, on-time payments on any current accounts — even a secured credit card — demonstrate recovery and improve your position.
Equity position
This is the primary underwriting factor. Strong equity reduces lender risk regardless of credit history. Borrowers with substantial equity have more options even with significant credit challenges.
Income stability
Evidence of consistent income — employment letter, pay stubs, recent bank statements — provides confidence that you can service the new mortgage. Private lenders are flexible on how income is demonstrated.
Exit plan
Lenders want to understand how you will repay or refinance at term end. A credible path to conventional financing — through credit rebuilding or property sale — improves the strength of your application.
Common Questions
Bad credit mortgage FAQ
Can I get a mortgage after a bankruptcy in Ontario?
Yes, in many cases. After discharge, private lenders can often provide financing if sufficient property equity exists. The sooner after discharge, the more limited the options and the higher the rate. Generally, the further you are from the event and the more rebuilt your credit, the better your terms.
What credit score is required for a private mortgage?
Private lenders don't use minimum credit score thresholds the way banks do. They look at the overall picture: what caused the low score, what's happened since, and whether the property equity supports the loan. A score of 450 is not an automatic disqualification if equity and income are sufficient.
I have a consumer proposal that's been completed. Do I qualify?
Completed consumer proposals are generally viewed more favourably than recent bankruptcies. Private lenders familiar with credit-event borrowers can often accommodate this. An active (ongoing) proposal is more complicated, but may still be possible in certain circumstances.
Will a private mortgage help me rebuild my credit?
Not directly. Private mortgages are not typically reported to credit bureaus the same way bank mortgages are, so they won't add a positive tradeline. However, the private mortgage gives you time and financial stability to rebuild through other means — secured cards, auto loans, and maintaining your other obligations on time.
What is a realistic path from private mortgage to bank financing?
Most credit-challenged borrowers using private financing are targeting conventional qualification within 1–3 years. This typically means: maintaining the private mortgage in good standing, rebuilding 2–3 active credit tradelines, achieving two or more years of stable income documentation, and clearing any outstanding judgements or collections. Your broker can help map this out at the outset.
Tell us your situation. We'll give you an honest answer.
We review credit-challenged applications without judgement. If private financing can help, we'll tell you. If it can't, we'll explain why and what alternatives exist.