Can You Get a Private Mortgage in Ontario Without an Appraisal?

Yes — Stonefield Capital approves most private mortgages in Ontario without a formal appraisal, using an in-house comparable-sales analysis instead.

What Is a Private Mortgage Appraisal Waiver?

A private mortgage appraisal waiver is a lender's decision to rely on internal valuation evidence rather than a licensed appraiser's report. The waiver replaces a third-party fee report with the lender's own comparable-sales review. Ontario's private mortgage market applies this approach far more frequently than institutional lenders do, because private lenders underwrite on equity and exit strategy rather than on income ratios alone.

How Does Stonefield Capital Value a Property Without an Appraisal?

Stonefield Capital runs a comparable-sales analysis on every file — reviewing recent sales of similar properties in the same market area. This internal process typically produces a supportable value within the same business day a deal is submitted. Skipping the formal appraisal saves the borrower a fee and, more meaningfully, removes several days from the timeline.

The analysis covers property type, location, lot or unit characteristics, and sale recency. When the comparable evidence is clear and consistent, no external report is needed.

When Is a Formal Appraisal Still Required?

An appraisal becomes necessary when the comparable-sales picture is ambiguous — for example, a rural property with few recent sales, a highly customised home with no close comparables, or a mixed-use building where income and real-estate valuation methods overlap. Stonefield Capital flags the need for an appraisal in its initial response to the broker, never at commitment and never at the last minute. Borrowers and brokers know the requirement before the deal advances.

What Property Types Qualify for the No-Appraisal Path?

• Residential freehold in established Ontario urban and suburban markets
• Condominium units in buildings with recent comparable sales
• Rental and investment properties where comparable evidence is available — see rental and investment property financing
• Properties securing a private second mortgage, where a recent first-mortgage appraisal may already exist on file
• Cottage and vacation properties in active recreational markets — though rural or seasonal markets with thin sales data more often require a formal report

Does Skipping the Appraisal Change the Loan Terms?

No — the absence of a formal appraisal report does not automatically affect rate or loan-to-value. Pricing at Stonefield Capital is determined by property type, loan position, and the strength of the exit plan, not by whether an appraisal was ordered. Current indicative rates are published at stonefieldcapital.ca/private-mortgage-rates and are subject to underwriting approval on every file.

How Does This Affect Closing Speed?

Removing the appraisal step is one of the main reasons private mortgage closings can move faster than bank deals. At Stonefield Capital, funding in as little as 48 hours is possible when legal counsel is ready — the bottleneck is legal preparation, not underwriting. For time-sensitive situations such as a looming power of sale or a bridge loan with a fixed closing date, avoiding a multi-day appraisal wait can be the difference between a deal closing or collapsing.

What Documents Are Still Needed?

Waiving the appraisal does not mean waiving all documentation. Stonefield Capital underwrites on equity and exit strategy, so the core file still includes a Notice of Assessment (to confirm no large CRA arrears), a property address and brief description, and a clear exit plan — sale, refinance, or renewal. Income documents such as T4s or bank statements may be requested to support servicing ability and the exit plan. The absence of a formal income package rarely stops a deal; the absence of a credible exit plan always does.

How Does This Work for Brokers Submitting Deals?

Licensed Ontario mortgage brokers submit deals directly to Stonefield Capital. An initial response — including whether an appraisal will be required — typically comes back the same day. Borrowers who approach Stonefield Capital directly are connected with a licensed broker to structure and submit the file. No deal advances without a licensed broker on the file.

Brokers can reach the Stonefield Capital team at (416) 889-4198 or info@stonefieldcapital.ca to discuss a specific property before formal submission.

What Are the Typical Costs on a No-Appraisal Private Mortgage?

Legal fees typically run approximately $3,000 per transaction. No formal appraisal fee applies on files where the internal comparable-sales review is sufficient. Lender fees and rates vary by deal and are confirmed at commitment — brokers should contact Stonefield Capital for deal-specific indicative terms rather than relying on any published figure as a live quote.

Frequently Asked Questions

Does Stonefield Capital require an appraisal on every private mortgage in Ontario?

No. Stonefield Capital uses an in-house comparable-sales analysis on most files, which typically eliminates the need for a formal appraisal. An appraisal is only required when the comparable evidence is insufficient — for example, rural properties with few recent sales or highly customised homes. When one is needed, Stonefield flags it in the initial response, not at commitment.

How long does it take to get approved without an appraisal?

Stonefield Capital typically provides an initial response on the same business day a broker submits a deal. Removing the appraisal step means the valuation work is done internally and doesn't add days to the timeline. Funding in as little as 48 hours is possible when legal counsel is ready; legal preparation is the usual bottleneck, not underwriting or valuation.

Will waiving the appraisal affect my client's rate or LTV?

Not automatically. Stonefield Capital prices each deal based on loan position, property type, and exit strategy — not on whether a formal appraisal was ordered. If the internal comparable-sales review supports the requested loan amount, the absence of a third-party report does not trigger a rate penalty or LTV reduction. Current indicative rates are at stonefieldcapital.ca/private-mortgage-rates.

What if the property is in a rural area with few comparables?

Rural or seasonal properties with thin comparable-sales data are among the cases most likely to require a formal appraisal. Stonefield Capital identifies this requirement in its initial file review and communicates it immediately to the broker. The deal can still proceed — it simply takes the additional time needed to obtain the report before commitment is issued.

Does skipping the appraisal mean no income or document review at all?

No. Stonefield Capital still requests a Notice of Assessment on every file to confirm there are no significant CRA arrears. Income documents such as T4s or bank statements may be requested to support the borrower's ability to service the mortgage and execute the exit plan. Missing income documents rarely stop a deal; a credible exit plan is always required.