Private Mortgage FAQ for Borrowers, Brokers and Investors.

Qualification comes down to two things: sufficient property equity and a viable exit strategy. Stonefield funds up to 70% LTV in the GTA and 65% in secondary markets and accepts exits like refinancing to a bank, selling the property, or payout from another defined source. Credit score, income documentation, and employment history are reviewed for context, not as pass/fail criteria.

Yes, when you work with a licensed, regulated lender. At Stonefield, we prioritize ethical lending. We are not 'predatory' lenders — we utilize common-sense underwriting and focus on your successful exit strategy to ensure the mortgage is a bridge to your future, not a burden. We are licensed under FSRA (Lic. #13722) and follow strict regulatory standards.

Residential rates at Stonefield run from 7.49% for low-risk 1st mortgages in the GTA and up to 11.99% for higher-risk 2nd mortgages in tertiary markets. Low-risk bridge deals under 50% LTV can price even lower. Final pricing depends on LTV, position, location, and exit strategy. The lower the risk on a file, the lower the rate and fee.

Typical Stonefield terms run anywhere from 1 to 12 months. We understand that an exit plan doesn't always work out exactly as planned and that timelines change, so renewals with strong borrowers are always an option. Private mortgages are designed as short-term bridges, the goal is to solve the immediate problem and transition the borrower back to a conventional lender or out through a property sale.

Yes. Stonefield has no minimum credit score and does not require income documents for a deal to fund. We will always ask for NOAs to ensure there are no large outstanding balances owed to the CRA. We may also ask for supporting income documentation (such as bank statements), but a lackthereof will rarely kill a deal. Equity-based underwriting means that if the property has enough equity and your exit plan is realistic, bruised credit, a prior bankruptcy, a consumer proposal, or self-employment aren't barriers. We fund these files every week.

Yes. Most Stonefield private mortgages are structured as open or partially open, meaning you can pay out early without major penalties. The prepayment terms are spelled out in the commitment letter before closing — we'd rather you exit to a bank six months early than be trapped in a private mortgage longer than necessary.

We fund files in active consumer proposals and bankruptcies regularly. If your property has enough equity, we can provide the capital to pay out the proposal in full, which removes it from your credit report and accelerates your path back to bank financing. Typical terms of up to 12 months give you the runway to rebuild.

Yes. We lend across Ontario on waterfront, seasonal, water-access-only, non-winterized, and rural recreational properties — property types most banks decline outright. LTV adjusts with liquidity: generally up to 60% of our internal evaluation. See our cottage and vacation page for specifics.

Most Stonefield mortgages carry monthly interest-only payments. For borrowers with temporary cash-flow constraints, we can structure pre-paid or partially pre-paid mortgages where all or part of the interest is held back from the initial advance, so the borrower has no (or less) monthly obligation during the term. This is especially useful for flips, short-term bridges, and construction files.

A first mortgage sits in priority position on title, which means it gets repaid first if the property is sold. A second mortgage sits behind the first and carries more risk, which is why second-position rates are typically 2% to 4% higher. Stonefield funds both: first positions from 7.49% in the GTA, second positions from 9.99%, with no requirement to break the existing first to access equity.

The preferred method is the online deal submission form at stonefieldcapital.ca/deal-submission. You also have the option to e-mail us directly at info@stonefieldcapital.ca to have our underwriting team build the file for you. Finally, you can submit through Filogix, Lendesk, Boss or Velocity portals (search for Stonefield Capital in the lender directory). All submission channels land on the same underwriting team and get a response within 1 business day, usually faster.

Typically within 60 minutes of submission, always within 1 business day. Send the property address, existing balances, the story, and net funds needed — that's enough for an initial answer. Same-day commitments are standard, with 2 business days as the outer edge. One underwriter reviews the file; there's no committee chain slowing down your response.

In most cases, no. We use our own comparable sales analysis — saving your client the $500–$1000 appraisal fee and eliminating the single biggest bottleneck in a rush close. On the rare deal where we need a formal appraisal, we flag it in the initial response so nothing surprises you at commitment.

Up to 70% total LTV in major urban centres (Toronto, GTA, Vaughan, Richmond Hill) and 65% in secondary markets, stepping down as property liquidity decreases. If the LTV is too high as submitted, we always recommend cross-collateralizing or blanketing the mortgage on other properties (rentals, family members, etc) to achieve your goals.

Yes, often. When the primary property doesn't support the full loan amount, we cross-collateralize with one or more additional properties, which can push a deal to 100% financing. This is especially useful for portfolio investors and rental clients with equity spread across multiple assets.

Arrears are a common reason for private lending. We fund deals that clear property tax arrears, CRA arrears and mortgage arrears (including files in active power of sale) as long as the equity fits our LTV parameters (70% in the GTA, 65% in secondary markets).

Yes. We regularly lend to corporations and holding companies, A personal guarantee from the principal director(s) is required so the underwriting still rests on an individual — the corporate structure is about tax efficiency and asset protection, not a substitute for skin in the game.

We focus primarily on cookie-cutter residential properties but have funded all types of private mortgage files. Examples include: construction projects, vacant land, commercial units, estate and probate properties, mixed-use properties, multi-unit, cottages and more. If it has equity and a viable exit strategy, we'll look at it. LTV adjusts by property type and liquidity, the less liquid, the lower the LTV.

We do occasionally lend in third position on exception but not behind other private lenders. In some cases, one lender will have multiple registrations on a property, technically making it a 3rd mortgage. In other scenarios, you may have a bank in 1st position and a B lender in second position (i.e. Home Trust Equity Line Visa). If you require a third mortgage with a total effective Loan to Value of less than 65%, please reach out to us for underwriting.

Target net returns of 7% to 11%, paid monthly by EFT. First mortgages on GTA properties sit at the lower-risk, lower-return end; second mortgages or properties in secondary markets sit higher. Returns are net of Stonefield's Mortgage administration fee, and historical realized yields on 2022–2024 originations have delivered in this range with $0 in investor capital losses across 8+ years.

Your investment is secured by a registered charge on the property title (in first or second position) with your name or nominee corporation registered directly on title. This is a direct, secured investment, not a pooled fund participation. Stonefield Mortgage Administration (FSRA Lic. #13636) handles all the monthly collection and enforcement (in the rare scenario that it's required) on your behalf.

Capital commitments typically start at $50,000 (but can be lowered). Three participation structures are available: Entire Deal (100% ownership of a single mortgage charge), Participation Agreement (multiple investors pro-rata on a single deal), or A/B-Piece Participation (priority repayment in exchange for a lower return on A piece and vice versa on B piece). Each structure matches a different capital size and risk tolerance.

Stonefield Mortgage Administration (FSRA Lic. #13636) handles every stage of enforcement on your behalf. Default files are moved immediately into Ontario's Power of Sale process, which typically resolves in 9 to 12 months and recovers principal, accrued interest, and legal costs. While private mortgages require a high risk tolerance and losses can occur, over 8 years of lending, Stonefield has delivered $0 in investor capital losses — total portfolio losses are under $250K, all borne by Stonefield, not investors. Past results are not an indicator of future performance.

Interest is distributed monthly via EFT, with pre-deposit notifications sent before each payment. You receive a detailed monthly statement for every active loan in your portfolio, administered through our FSRA-compliant pooled trust account.

Yes. Stonefield mortgage investments are eligible for RRSP, TFSA, LIRA, and RRIF accounts. We work with Olympia Trust, a specialized trustee for holding private mortgages within registered plans. Net returns of 7% to 11% compound tax-sheltered inside the registered account — same Stonefield mortgages, materially different after-tax outcome.

Stonefield offers risk adjusted returns at market prices based on the merit of each mortgage loan. We usually retain a minimum administration spread of 0.25%-1.00% of the loan amount, disclosed in writing before you commit any capital. All return figures we quote (7% to 11%) are already net of this fee. Returns are not net of personal income tax, which varies by individual and account type.

Yes. Stonefield Capital Inc. holds FSRA Lic. #13722 and Stonefield Mortgage Administration Inc. holds FSRA Lic. #13636 (administration). We also maintain compliance with FINTRAC (anti-money laundering), PIPEDA (federal privacy), and OSC (Ontario Securities Commission) frameworks — the full regulatory stack for a licensed Ontario private lender.

We lend across Ontario. Portfolio concentration sits at roughly 85%+ in the GTA with the majority of our files in urban centres. The remainder are in secondary and tertiary markets including Ottawa, Hamilton, Niagara, London, Kitchener-Waterloo, and cottage country (Muskoka, Kawarthas, Georgian Bay).

We are common-sense, equity-based lenders who are not restricted by institutionally backed financing. Stonefield often co-invests its own capital alongside investors in most deals, our money is at risk with yours.

Email the team at info@stonefieldcapital.ca for the fastest response or contact individual team members directly. Please find their information via the contact page.