Can I Get a Deposit Loan for a Home Purchase in Ontario?

Yes: Stonefield Capital provides deposit loans in Ontario so buyers can bridge the gap between a signed Agreement of Purchase and Sale and their closing funds.

What Is a Deposit Loan?

A deposit loan is a short-term advance that funds the deposit a buyer owes when an offer is accepted, before the full mortgage or sale proceeds arrive. Deposit loans are not the same as a down-payment mortgage: the down payment is paid at closing, while the deposit is due days or weeks earlier. Stonefield Capital advances the deposit amount so the buyer's offer stays firm while the rest of the financing falls into place.

Why Do Buyers Need a Deposit Loan?

Ontario purchase agreements typically require a deposit within 24 hours of acceptance (sometimes sooner on competitive offers). A buyer's capital may be tied up in a GIC that hasn't matured, a property that hasn't sold yet, or an RRSP in the middle of a Home Buyers' Plan withdrawal. A deposit loan releases that pressure without requiring the buyer to break long-term investments at a penalty.

New construction buyers face a longer gap: deposits on pre-construction condos and homes can be spread over months, and the funds are due well before occupancy. A deposit loan can cover one or more of those instalments.

How Does Stonefield Capital Underwrite a Deposit Loan?

Stonefield Capital decides on equity and exit, not income documents or credit score. The underwriting question is straightforward: will the funds arrive in time to repay the loan at or before closing? Common exit sources include a mortgage advance, proceeds from a home being sold, or maturing investments. The borrower's overall equity picture (property owned or being purchased) supports the advance.

There is no income test and no minimum credit score. A Notice of Assessment is requested to check for CRA arrears, which rank ahead of any registered charge and affect the available equity.

What Does the Loan Cover?

A deposit loan typically covers the deposit amount required under the Agreement of Purchase and Sale. Stonefield Capital does not prescribe a fixed ceiling: the amount advanced is sized to the deposit obligation and the strength of the exit. Legal fees of approximately $3,000 apply, as they do on any registered private mortgage transaction.

How Long Does a Deposit Loan Last?

Terms run from 1 to 12 months with interest-only payments during the term. Most deposit loans are very short: days to weeks — because the exit (closing) arrives quickly. Longer terms are available when the gap between deposit due date and closing is extended, as with some pre-construction timelines. Current indicative pricing is published at stonefieldcapital.ca/private-mortgage-rates, and all rates are subject to underwriting.

How Quickly Can a Deposit Loan Close?

Stonefield Capital can approve a file in as little as 24 hours. Funding can follow in as little as 48 hours when legal counsel is ready; the bottleneck is legal preparation, not underwriting. Brokers submitting a deposit loan deal should have the Agreement of Purchase and Sale and a clear description of the exit on hand from the start.

How Does a Deposit Loan Differ from a Bridge Loan?

A bridge loan covers the gap between closing on a new purchase and receiving proceeds from a home being sold — it bridges two closings. A deposit loan is narrower: it covers only the deposit obligation that falls due before any closing happens. In practice, a buyer might need a deposit loan first, then a bridge loan later, depending on the transaction structure.

Is Security Required?

A deposit loan from Stonefield Capital is registered as a private mortgage on title, in first or second position depending on the borrower's situation. If the buyer does not yet own the purchase property, existing real property in Ontario can serve as collateral. The registered charge gives the advance proper legal standing and protects all parties until repayment.

Who Submits a Deposit Loan Deal to Stonefield Capital?

Deals come through licensed Ontario mortgage brokers. Brokers submit the file, manage the client relationship, and receive the broker fee at closing. Borrowers who contact Stonefield Capital directly are connected with a broker. The broker-submitted path is the fastest route to an approval because the broker assembles the deal package before submission.

What Information Does the Broker Need to Submit?

• Signed Agreement of Purchase and Sale showing the deposit amount and due date
• Description of the exit — mortgage commitment, property sale, or maturing funds
• Property address and estimated value of the collateral
• Most recent Notice of Assessment for each borrower on title
• Any existing mortgage statements on the collateral property

The cleaner the package, the faster the approval. Stonefield Capital's underwriting focuses on whether the exit is real, the timeline is credible, and the equity supports the advance.

Does a Deposit Loan Affect the Borrower's Credit?

A Stonefield Capital private mortgage is registered on title but not reported to credit bureaus, so it does not directly move a credit score up or down. Borrowers who use a deposit loan to protect a purchase — rather than breaking a GIC or RRSP early at a cost — preserve capital that can support a stronger position at closing.

Frequently Asked Questions

What is a deposit loan in Ontario, and when do I need one?

A deposit loan is a short-term private mortgage advance that covers the deposit due when a purchase offer is accepted, typically within 24 hours, before your mortgage or sale proceeds arrive. Stonefield Capital provides deposit loans in Ontario when a buyer's funds are tied up in a GIC, an RRSP withdrawal, or an unsold property. The loan is repaid at or before closing from those incoming funds.

How fast can Stonefield Capital fund a deposit loan?

Stonefield Capital can approve a deposit loan file in as little as 24 hours, with funding possible in as little as 48 hours when legal counsel is ready. The bottleneck is legal preparation, not underwriting. Brokers should have the signed Agreement of Purchase and Sale and a clear exit description ready at submission to keep the timeline as short as possible.

Do I need good credit or proof of income to get a deposit loan?

No. Stonefield Capital underwrites on equity and exit strategy, not credit score or income documents. There is no income test and no minimum credit score. A Notice of Assessment is requested to check for CRA arrears, which rank ahead of any registered charge. The key underwriting question is whether the funds to repay the loan will arrive on time and whether the collateral supports the advance.

What property can I use as collateral for a deposit loan?

Stonefield Capital registers the deposit loan as a private mortgage in first or second position on Ontario real property. If the buyer does not yet hold title to the purchase property, an existing property in Ontario can serve as collateral. The collateral must have sufficient equity to support the advance after accounting for any prior registered charges and estimated CRA arrears.

How does a deposit loan differ from a bridge loan?

A bridge loan covers the gap between two closings: funding a new purchase before an existing property sells. A deposit loan is narrower: it funds only the deposit obligation that falls due before any closing occurs. A buyer might need a deposit loan first to secure the accepted offer, then a bridge loan later to close the purchase while waiting for sale proceeds from their current home.