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

Yes: Stonefield Capital offers private mortgages on rental and investment properties in Ontario, qualifying on property equity and exit strategy, not rental income.

What Is a Rental Property Private Mortgage?

A rental property private mortgage is a short-term, equity-based loan registered on title against an income-producing or investment property. Unlike a bank mortgage, approval turns on the equity in the asset and a credible exit, not on rental income passing a stress test. Terms run from 1 to 12 months, with payments structured as interest-only throughout the term.

Why Do Banks Decline Rental Property Mortgages?

Banks apply strict rules to rental income: typically accepting only 50–80% of gross rents, discounting further for vacancies, and excluding short-term or Airbnb income entirely. A property with three or more units may trigger commercial underwriting, adding another layer of difficulty.

The result is that a landlord with real equity and a clear plan to refinance or sell can be declined for reasons that have nothing to do with risk; it is only about how the lender's income model handles rental cash flow. A private lender approaches the same file differently.

How Does Stonefield Capital Underwrite Rental Properties?

Stonefield Capital underwrites rental and investment property files on two things: the equity registered in the property and a realistic, documented exit. Rental income is considered as context (evidence of how the property functions) but it is not the approval gate.

A Notice of Assessment is always requested, primarily to confirm the absence of large CRA arrears. Additional income documents such as T4s, T2s, or bank statements may be requested to support the exit picture. Missing income documents rarely stop a deal; missing equity or a missing exit plan does.

How Are Short-Term Rental and Airbnb Properties Underwritten?

Short-term rental properties, including Airbnb listings, are underwritten on the property itself: its equity, local comparable sales, and the exit. Stonefield does not underwrite on nightly rates, platform occupancy data, or third-party revenue projections.

This matters because banks and many institutional lenders treat short-term rental income as too variable to count. Stonefield's underwriting bypasses that problem entirely by treating the asset, not the revenue stream, as the security. Read more about private mortgages for Airbnb and short-term rental properties.

Does the Number of Doors or Units Matter?

Multi-unit properties can trigger commercial thresholds at banks, often at four or more doors, which changes underwriting standards and frequently results in a decline. Stonefield reviews residential-anchored rental properties on their equity position without applying the same unit-count triggers that banks use. Each file is assessed on its own merits.

What If the Loan-to-Value Is High?

When the equity in a single rental property is not sufficient on its own, a second property can be added as collateral. Cross-collateralizing (also called a blanket arrangement) allows two or more properties to support one loan facility, increasing the equity base available to the lender without requiring the borrower to sell. This is a standard option Stonefield can structure when LTV on the primary asset runs close to its limits.

Is an Appraisal Required?

In most cases, no formal appraisal is required. Stonefield runs an in-house comparable-sales analysis to assess value, which saves the borrower both a fee and the several days a formal appraisal typically adds to a timeline. When an appraisal is needed, for example for unusual property types or edge-case locations — that requirement is flagged in the initial response, not at the commitment stage. See how this works in the article Can You Get a Private Mortgage in Ontario Without an Appraisal?

How Fast Can a Rental Property File Close?

Stonefield Capital can issue a same-day commitment on most rental property files. Funding can follow in as little as 48 hours when legal counsel is prepared and title is clear. The bottleneck on speed is almost always legal readiness, not underwriting. For time-sensitive acquisitions or refinances with an expiring deadline, the 48-hour rush closing option is available.

What Are the Rates and Terms?

Terms run from 1 to 12 months. Payments are interest-only for the duration. Rates are priced by loan-to-value and lien position and are not fixed; current indicative rates are published at stonefieldcapital.ca/private-mortgage-rates. Legal fees are typically approximately $3,000 per transaction. No figures should be treated as a quote until underwriting is complete.

Is This Available for Purchases as Well as Refinances?

Yes. Stonefield lends on rental property purchases and refinances across Ontario. Common use cases include acquiring an investment property before conventional financing is arranged, pulling equity from an existing rental to fund a deposit on a next purchase, and bridging a landlord through a period where income documentation does not yet support a bank application.

How Does a Borrower Apply?

Stonefield Capital works through licensed Ontario mortgage brokers. Borrowers who come directly are matched with a Stonefield-approved broker through the connect form on the website. The broker submits the deal, and Stonefield responds with a decision, typically the same day the file is complete. Ontario only — no other provinces are served.

For a full overview of how Stonefield structures rental and investment property mortgages, visit the service page or submit through the broker connect form to get matched and start a file.

Frequently Asked Questions

Can I get a private mortgage on a rental property in Ontario if my bank declined because of rental income?

Yes. Stonefield Capital approves rental property mortgages based on the equity in the property and a clear exit strategy, not on whether rental income passes a bank stress test. If your property has sufficient equity and you have a realistic plan to refinance or sell within the term, a bank decline on income grounds typically does not block a private mortgage.

Does Stonefield Capital lend on Airbnb or short-term rental properties in Ontario?

Yes. Short-term rental and Airbnb properties are underwritten on property equity and local comparable sales, not on nightly rates, platform occupancy data, or revenue projections. This allows Stonefield to approve files that institutional lenders decline because they cannot treat short-term income as stable. The property's equity and exit plan drive the decision.

What documents are required for a rental property private mortgage?

A Notice of Assessment is always requested to confirm there are no large CRA arrears. T4s, T2s, or bank statements may be requested depending on the file. Missing income documents rarely kill a deal; the underwriting focus is equity in the property and a credible exit. In most cases, no formal appraisal is needed, as Stonefield runs its own comparable-sales analysis.

What if my rental property doesn't have enough equity on its own?

When equity in a single property runs close to its limit, a second property can be added as collateral in a cross-collateral or blanket arrangement. This increases the equity base available to support the loan without requiring a sale. Stonefield can structure this as part of the initial commitment when the primary property's loan-to-value is tight.

How do I apply for a private mortgage on a rental property through Stonefield Capital?

Stonefield Capital works with licensed Ontario mortgage brokers. If you do not have a broker, use the connect form on the website to be matched with a Stonefield-approved broker who will submit your file. Stonefield typically issues a same-day commitment once the file is complete, with funding possible in as little as 48 hours when legal counsel is ready. Ontario properties only.