Stonefield Capital can approve a private mortgage in Ontario in as little as 24 hours, with funding possible in as little as 48 hours when legal counsel is ready.
How Fast Can a Private Lender in Ontario Close a Mortgage?
Stonefield Capital can approve a private mortgage in Ontario in as little as 24 hours, with funding possible in as little as 48 hours when legal counsel is ready.
What Is a Fast-Close Private Mortgage?
A fast-close private mortgage is a short-term loan secured by Ontario real estate that can be approved and funded far more quickly than a bank mortgage. The bottleneck is legal preparation, not underwriting. Stonefield Capital underwrites primarily on property equity and a clear exit strategy, which removes the lengthy income-qualification process that slows institutional lenders.
Why Can Private Lenders Close Faster Than Banks?
Banks and monoline lenders follow a tiered approval process: application, underwriting, insurer review (if applicable), commitment, and then legal. Each stage can take days. Private lenders compress these stages because underwriting decisions are made in-house by a single decision-maker reviewing equity, title, and exit.
Stonefield Capital typically runs its own comparable-sales analysis rather than ordering a formal appraisal. This saves the borrower both a fee and several days of wait time. When an appraisal is needed, that requirement is flagged in the initial response, never at commitment or the last minute.
What Are the Common Reasons Brokers Need a Fast Close in Ontario?
- Firm purchase offer with a short closing date
- Bridge financing gap when a sale has not yet closed
- CRA tax arrears or pending power-of-sale action
- Construction draw required before a scheduled milestone
- Divorce or estate settlement with a court-imposed deadline
- Refinance to stop NSF defaults on existing mortgage
In each scenario, time is the primary constraint. A private mortgage from Stonefield Capital is designed to meet that constraint without sacrificing proper underwriting.
What Does Stonefield Capital Actually Need to Move Quickly?
Speed depends on how quickly a broker packages the file. The shorter the checklist, the faster the approval.
| Document | Why It's Needed | Hard Requirement? |
|---|---|---|
| Recent NOA (Notice of Assessment) | Confirms no large CRA arrears | Yes: always requested |
| Property address and MLS/photos | Supports comparable-sales analysis | Yes |
| Mortgage statement(s) | Confirms existing charge amounts and status | Yes |
| T4s, T2s, or bank statements | May be requested for servicing and exit assessment | Case-by-case; missing docs don't kill the deal |
| Brief borrower narrative | Clarifies the situation and exit strategy | Strongly recommended |
What Is the Typical Timeline from Submission to Funding?
- Hour 1–4: Broker submits deal. Stonefield Capital reviews equity position and flags any appraisal requirement immediately.
- Hour 4–24: Conditional approval or term sheet issued in most cases.
- Day 1–2: Borrower retains independent legal counsel. Lawyer receives lender instructions.
- Day 2–5: Title search, mortgage documents prepared and signed.
- Funding day: Funds released on registration confirmation, typically Day 3–5 when legal counsel is already engaged and ready.
The single biggest delay in any fast close is legal preparation. Brokers who pre-advise borrowers to retain a real estate lawyer before submission routinely shave one to two days off the timeline.
How Is Pricing Structured for a Fast-Close Private Mortgage?
Stonefield Capital prices by loan-to-value and mortgage position. First mortgages carry lower rates than second mortgages. Higher equity positions carry lower rates. Current rate ranges are published at stonefieldcapital.ca/private-mortgage-rates. No specific rate is quoted here because pricing is deal-specific and subject to change.
Lender fees are disclosed upfront on the term sheet. Brokers receive compensation through the normal brokerage fee structure disclosed to the borrower.
What Happens When Loan-to-Value Is Too High?
When a single property's equity falls short of Stonefield Capital's required position, the standard remedy is cross-collateralization: placing a blanket charge across two or more owned properties to reach the required LTV. This keeps the deal alive without requiring the borrower to source additional cash. Brokers should disclose all owned Ontario properties at submission if LTV is borderline.
Does a Fast-Close Private Mortgage Affect the Borrower's Credit Score?
A Stonefield Capital private mortgage is registered on title but is not reported to credit bureaus. The mortgage itself does not directly move a credit score in either direction. However, borrowers who use the funds to clear high-interest debt or NSF arrears typically see credit improvement over the following three to twelve months as those accounts regularize.
How Do Brokers Submit a Deal to Stonefield Capital?
Ontario-licensed mortgage brokers can submit directly through the broker portal or by contacting the Stonefield Capital team. Submissions with a completed property address, existing mortgage details, NOA, and a brief narrative receive the fastest response. Stonefield Capital is licensed under FSRA brokerage licence #13722 (Stonefield Capital Inc.) and operates exclusively in Ontario.
Visit stonefieldcapital.ca/brokers for submission guidelines and current contact details.
Frequently Asked Questions
How fast can Stonefield Capital actually fund a private mortgage in Ontario?
Stonefield Capital can issue a conditional approval in as little as 24 hours and fund in as little as 48 hours when the borrower's legal counsel is already engaged and ready to act. The underwriting decision is not the bottleneck — legal preparation is. Brokers who advise borrowers to retain a real estate lawyer before submission routinely achieve the fastest closings.
Does Stonefield Capital require an appraisal for a fast-close deal?
In most cases, no formal appraisal is required. Stonefield Capital runs its own comparable-sales analysis, which saves the borrower both the appraisal fee and several days of wait time. If an appraisal is needed for a specific property or deal structure, that requirement is flagged in the initial response, never at the commitment stage or the last minute.
What income documents are needed for a fast-close private mortgage in Ontario?
A recent Notice of Assessment (NOA) is always requested to confirm there are no significant CRA arrears. T4s, T2s, or bank statements may be requested depending on the deal, but missing income documents do not automatically kill a file. Stonefield Capital underwrites primarily on property equity and a clear exit strategy, so incomplete income documentation is common and manageable.
Can a second mortgage close as fast as a first mortgage with a private lender in Ontario?
Yes, a second mortgage can close on the same timeline as a first mortgage in most cases. The process is identical: equity review, term sheet, and legal registration. Second mortgage pricing is higher than first mortgage pricing because of the subordinate charge position. Current rate ranges for both positions are published at stonefieldcapital.ca/private-mortgage-rates.
What if the property's loan-to-value is too high for a fast-close private mortgage?
When a single property does not provide sufficient equity, Stonefield Capital's standard remedy is cross-collateralization: placing a blanket charge across two or more Ontario properties owned by the borrower to reach the required loan-to-value position. Brokers should disclose all owned properties at submission when LTV is borderline, so this option can be assessed immediately rather than after a delay.
Stonefield Capital
Stonefield Capital writes for Stonefield Capital, an FSRA-licensed private mortgage lender serving Ontario brokers, investors, and borrowers since 2018.
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