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Self Employed and Stated Income Mortgages in Toronto and the GTA

A private mortgage may be considered using business cash flow and property equity. Approval and terms depend on the property, title, lender review and a documented exit strategy.

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What are self employed and stated income mortgages?

Borrowers seeking financing for business cash flow and property equity may find that conventional underwriting does not fit their circumstances or timing. A private mortgage is secured against eligible real estate, and each lender assesses the property, existing charges, marketability and requested amount. In Toronto and the Greater Toronto Area, available options vary by municipality, property type and title. No application is guaranteed, and borrowers should provide complete and accurate information before relying on a proposed funding plan.

The review commonly considers bank statements, business records and a clear repayment plan, together with an appraisal, mortgage statements, tax status and legal title. Ontario mortgage advances are completed through lawyers, who verify identity, review title, obtain payout statements and register the charge. For purchases, construction or specialized property, additional documents and conditions may apply. Read the written commitment carefully and ask your lawyer to explain priority, payment obligations, maturity, default provisions and discharge requirements before signing.

This financing is usually a short term bridge, not a substitute for permanent financing. Before accepting terms, identify how repayment will occur, such as refinance, sale, project proceeds or other documented funds. Costs are generally higher than bank financing and depend on the property, equity, lender and exit. Allow time for valuation, underwriting, legal work and conditions. Start planning early and do not assume an extension or renewal will be available.

Who this is for

  • An Ontario borrower who needs financing for business cash flow and property equity.
  • A property owner or purchaser whose circumstances include business owners, contractors and professionals whose reported taxable income does not reflect current cash flow.
  • A borrower able to provide accurate property and debt information.
  • An applicant with a plausible and documented repayment plan.
  • An owner of property suitable for lender review in Toronto, Peel, York, Durham or Halton.
  • A borrower prepared to review costs and legal terms with independent counsel.

How it works

  1. 1

    Initial discussion

    Explain the property, amount, purpose, timing and intended repayment source. A discussion is not approval.

  2. 2

    Property and title review

    Share the address, ownership details, mortgage statements and relevant tax or lien information.

  3. 3

    Valuation and underwriting

    The lender assesses an acceptable valuation, equity, condition, marketability and the complete application.

  4. 4

    Commitment and legal closing

    Review the written commitment with your lawyer, who handles title, payouts, funds and registration.

  5. 5

    Funding and repayment

    Funds are advanced after conditions are met. Track the maturity date and follow the agreed repayment plan.

Typical terms

SecurityRegistered mortgage charge on eligible Ontario real estate
PriorityDepends on registration and existing charges
Loan to valueBased on appraisal, title and lender policy
TermUsually 6 to 24 months
RepaymentScheduled payments or interest only where offered
ExitRefinance, sale or other documented repayment source

All mortgages are subject to lender approval and property qualification. Rates, terms, and fees vary by lender and are disclosed in writing before you sign.

Costs to expect

  • Interest is generally higher than bank financing and varies by the file.
  • Lender fees or brokerage compensation may apply and should be disclosed.
  • The borrower generally pays appraisal, title search and legal costs.
  • Existing mortgages, taxes, liens and other balances may require payout.
  • Request a written estimate of net proceeds and the amount due at maturity.

Documents needed

  • Government issued identification and ownership details.
  • Recent mortgage statements and payout statements for registered loans.
  • Property tax bill and current municipal tax account information.
  • Completed application stating the funding purpose and amount.
  • Income, banking or business records relevant to repayment.
  • Purchase agreement, lease records, plans or transaction documents where relevant.
  • CRA correspondence, lien documents or lender notices affecting title.
  • Property details and appraisal access requested by the lender.

Exit strategy

Plan the exit before closing. For financing related to business cash flow and property equity, common routes may include refinancing after resolving qualification issues, selling the property, or using documented funds from another source. Confirm that the expected amount and timing can repay principal, interest and costs. Allow for lender review, valuation, conditions and lawyer closing, and do not rely on future financing until a lender has reviewed the file.

Start well before maturity. Gather updated financial and property documents, address title or credit issues where possible, and confirm the requirements of any prospective lender. Renewal is not automatic. If a sale or project completion is the plan, allow for marketing, approvals, construction schedules and closing adjustments. Contact the lender early if timing changes, and seek legal advice about obligations before signing any amendment.

Self Employed and Stated Income Mortgages FAQ

How much can I borrow?

There is no universal amount. A lender considers an accepted appraisal, registered debt, location, condition, title and the purpose and exit for funds. Combined loan to value can reach up to 85% on strong GTA properties in appropriate cases, but this is not a promise of approval. Some properties or applications support less, and all conditions and costs should be reviewed before proceeding.

How quickly can funding happen?

Some complete files may fund in as little as a few business days, but timing depends on appraisal access, title review, lender conditions, payout statements and lawyer availability. Complex ownership, tax balances or an urgent enforcement deadline can take longer. Share all timing constraints at the outset and do not rely on an unconfirmed funding date or assume every required condition can be waived.

Will credit determine approval?

Not by itself in every private mortgage application. Lenders may weigh property equity, title and a realistic repayment plan while still reviewing credit history and the complete application. Credit reports may identify errors or obligations to address. Approval, cost and available terms vary by lender and individual circumstances. Explain relevant events accurately and provide supporting documents when requested.

Do I need an appraisal and lawyer?

Usually. The lender generally needs an acceptable property valuation, often through an appraisal, and Ontario mortgage funds are advanced through legal closing. Your lawyer reviews title, obtains payout figures, explains documents and registers the charge. The lender decides which valuation format and professionals are acceptable, so arrange access and incur appraisal costs only as instructed.

Are private mortgage costs higher?

Costs are generally higher than bank financing and vary with equity, location, lender and exit strategy. Appraisal, legal, lender and brokerage costs may also apply, along with payouts of existing debt. Request a written commitment and estimate of net proceeds and total maturity payout. Have your lawyer explain fees, default terms, payment obligations and discharge costs before you sign.

What happens when the term ends?

The balance must be repaid according to the commitment, often through refinancing, sale or another documented source. Renewal is not automatic. Begin planning early, confirm qualification and appraisal requirements with any prospective lender, and discuss timing with your lawyer. If repayment could be delayed, contact the lender before maturity rather than waiting until a payment is missed or a deadline becomes urgent.

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Self Employed and Stated Income Mortgages by area

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