FSRA Lic. #13722info@stonefieldcapital.ca
Ontario rental property

Rental & Short-Term Rental

Private Mortgages on Rental and Airbnb Property in Ontario

The building pays for itself, the tenants pay on time, and the bank still says the rent doesn't count. We lend on what the property is worth and how the loan gets repaid, not on how a spreadsheet treats your income.

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Stonefield Capital provides private first and second mortgages on rental and investment property in Ontario, including short-term rental and Airbnb properties and multi-unit residential buildings, for purchases and refinances. Approval is based on the equity in the property and a clear exit strategy; rental income is context, not the gate, and short-term rental income is not the basis of the loan. A Notice of Assessment is always requested to confirm no CRA arrears. Most files close without a formal appraisal; where one is needed it is flagged in the first response. Terms run 1 to 12 months, interest-only. Borrowers are matched with a Stonefield-approved mortgage broker.

Why a Bank Declines a Rental That Is Paying Its Own Way

A bank fits rental income into a formula. It counts only part of the rent, discounts again for vacancy, refuses short-term rental income outright because it is variable, and once a building reaches a few units it moves the file to a commercial desk with a different set of rules. Then the stress test runs on top. A landlord with real equity, paying tenants and a clear plan can fail every step of that for reasons that have nothing to do with the property.

A private mortgage starts from the asset. Stonefield looks at the equity in the property, what comparable properties sell for locally, and the exit — a refinance with a bank or B-lender once the income is documented the way they need it, or a sale. The rent is context: it shows how the property functions, but it is not the approval gate, and short-term rental income is never the basis of the loan. A Notice of Assessment is always requested to confirm there are no CRA arrears ranking ahead of the mortgage; leases, a rent roll or bank statements may be asked for to round out the picture. When the equity in one property runs tight, a second property can be added as security. You're then matched with a Stonefield-approved broker who structures the file and plans the exit.

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The Play: Close Now, Season the Income, Refinance

What the bank usually wanted was time: twelve months of leases and deposits on paper, a year of bookings for a short-term rental, a tax return that shows the income. A 1 to 12 month interest-only private mortgage closes the purchase or the refinance today, and the term is where that record gets built. Come back to a bank or B-lender with a documented year of income and the same property qualifies the conventional way. If the equity in one property is tight, a second property can carry part of the loan so the deal doesn't wait. A Stonefield-approved broker maps that exit before the commitment is issued.

The Rental Files We See

Purchases and refinances, single units through residential-anchored multi-unit buildings, anywhere in Ontario.

The Bank Discounted the Rent

Real tenants, real deposits, and a debt-ratio calculation that only counts a fraction of them.

Airbnb or Short-Term Rental

Strong bookings the bank won't count at all. We lend on the property, not the nightly rate.

Four Doors or More

A small apartment building the bank routed to its commercial desk, with commercial paperwork and a decline at the end of it.

Buying Before the Bank Is Ready

An investment property under contract and a lender that can't finish before closing.

Pull Equity for the Next One

Equity sitting in a rental you already own, and a deposit due on the next purchase.

Portfolio Cap Hit

The bank's limit on financed properties, reached. The next building has to be financed on its own merits.

In every case the questions are the same: what is the property worth, what is owed against it, and how does the loan get repaid.

What Landlords and Investors Should Know

Equity and Exit, Rent as Context

Approval rests on the equity in the property and a credible exit, in first or second position. Rental income shows how the property runs; it is not the gate, and unit count doesn't push a residential building into commercial underwriting here.

What to Send

The address, the current mortgage statement if there is one, the leases or a rent roll, and your most recent Notice of Assessment, which is always requested to confirm no CRA arrears. Most files close on our own comparable-sales review; if an appraisal is needed you're told up front.

Matched With a Broker

You're connected with a Stonefield-approved mortgage broker who structures the loan, handles the paperwork, and plans the exit to institutional financing, usually within one business day.

Frequently Asked Questions

Can I get a private mortgage on a rental property if the bank declined me because of the rental income?
Yes. Stonefield approves rental property mortgages on the equity in the property and a clear exit, not on whether the rent passes a bank's income formula or stress test. Real tenants and a plan to refinance or sell within the term are what the file is built on. You're matched with a Stonefield-approved broker who structures it.
Does Stonefield lend on Airbnb and short-term rental properties?
Yes, across Ontario. Short-term rental properties are underwritten on the property itself, its equity and local comparable sales, and on the exit. Nightly rates, platform occupancy data and revenue projections are not the basis of the loan, which is exactly why a decline from a bank that won't count that income doesn't carry over.
My building has four or more units. Is that commercial?
Not here. Residential-anchored multi-unit buildings are reviewed on their equity position without the unit-count triggers a bank uses to route a file to commercial underwriting. Each building is assessed on its own merits. Purely commercial property is a different conversation; send the address and Stonefield will say which it is the same day.
Do I need an appraisal?
Usually not. Stonefield runs its own comparable-sales analysis at submission, which saves the fee and the days a formal report adds. Where one is needed, for an unusual property type or location, that is flagged in the first response, never at commitment or closing.
How much can I borrow, and at what rate?
Borrowing is based on the equity available in the property and the lien position. When one property's equity runs tight, a second property can be added as security so the loan still works. Pricing is set by loan-to-value and position, so current rate ranges are published on the Stonefield rate page rather than quoted here. Terms run 1 to 12 months, interest-only.
How do I start?
Tell us about the property through the connect form and you'll be matched with a Stonefield-approved mortgage broker, usually within one business day. Brokers submit directly through the deal submission page. A commitment the same day in most cases, and funding in as little as 48 hours once legal counsel is ready.

Common Questions

A deeper answer to the question landlords ask most.

Can I Get a Private Mortgage on a Rental Property in Ontario?

Rental Pays, Bank Says No?

Get matched with a Stonefield-approved broker who lends on the property and the exit, not on how a formula treats your rent. Free, no obligation, most investors hear back within one business day.

Get Matched With a BrokerTalk to Us First