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Ontario residential property

Airbnb & Short-Term Rentals

Banks Won't Finance Your Short Term Rental. We Aren't As Closed Minded.

New acquisitions, refinances, conversions, cottage STRs and renovations, we can finance every stage of the STR investment lifecycle.

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Stonefield Capital provides private mortgage financing for Airbnb and short-term rental properties in Ontario, a property class that most chartered banks and monoline lenders decline to finance. We assess STR properties on equity position and exit strategy, not rental income classification or nightly rate projections.

Why Banks Decline Short-Term Rental Properties

Chartered banks and monoline lenders have a fundamental problem with Airbnb and short-term rental properties: the income is variable, seasonal, and does not fit their standard rental income classification. Most institutional lenders either decline STR properties outright or apply such aggressive income haircuts that the borrower cannot qualify.

Add in evolving municipal bylaws and the lack of a standard lease, and traditional underwriting simply breaks down for this property class. Stonefield Capital does not rely on rental income projections, occupancy rates, or nightly rate averages to qualify STR properties.

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Stonefield Insider Tip: Bylaws Don't Block Financing

Municipal STR bylaws are a common concern, but they do not prevent Stonefield from financing your property. We underwrite on equity, not on the property's income classification. That said, we recommend borrowers confirm local bylaw compliance independently, regulatory changes can affect property value and resale. The financing decision is separate from the operational decision.

Types of STR Deals We Fund

We finance every stage of the short-term rental investment lifecycle.

New STR Acquisition

Purchasing a new property specifically for Airbnb or short-term rental use.

Refinance for Equity Access

Refinancing an existing STR property to access equity or consolidate debt.

Conversion Bridge

Bridge financing for investors transitioning properties from long-term to short-term rental use.

Cottage STR

Cottage and vacation properties operating as seasonal short-term rentals in Ontario.

Renovation for STR

Funding renovations to prepare a property for the short-term rental market.

Multi-Unit STR

Multi-unit properties where some or all units are used for short-term rental.

Each deal is assessed on property equity and exit strategy, not debt servicing ratios.

How We Assess STR Properties

Property Value

We assess current market value using comparable sales data, not projected rental income or occupancy rates.

Equity Position

We fund up to 60% LTV in major urban centres and up to 50% in secondary markets. When additional properties are added to the file, LTV can increase.

Exit Strategy

Your plan to repay — refinance, sale, or conversion to long-term rental. The exit drives the underwriting, not the nightly rate.

Frequently Asked Questions

Do municipal STR bylaws affect my ability to get financing?
No. Stonefield underwrites on equity and exit strategy — not on the property's municipal STR classification. We regularly finance STR properties in municipalities with evolving or restrictive bylaws. That said, we recommend borrowers confirm local bylaw compliance independently, since regulatory changes can affect property value and resale — which ultimately affects your exit.
How does Stonefield verify income on STR properties?
We don't. Qualification is based on property equity and exit strategy — not nightly rates, seasonal occupancy projections, or AirDNA estimates. Banks decline STR files because the income is variable and hard to classify under traditional underwriting; Stonefield sidesteps that problem entirely by underwriting the asset, not the rental classification. We may ask for bank statements to show a history of income.
What types of STR properties can Stonefield finance?
Single-family homes, condos, townhouses, multi-unit residential, and cottage or vacation properties operating as STRs — all eligible. We also fund conversion bridges (transitioning a long-term rental into an STR) and renovation files to prepare a property for the short-term rental market. LTV and rate scale with property type and location.
Does zoning affect eligibility for STR financing?
Zoning is a factor we consider, but it doesn't automatically disqualify a property. Stonefield evaluates equity position, property condition, location, and exit strategy together. Properties in zones that prohibit STR use may carry a lower LTV or a higher rate to reflect the added risk — but the deal can still be done where the equity supports it.
Can I finance a cottage that I use as a seasonal Airbnb?
Yes. We finance on equity value, not on seasonal occupancy or nightly rate assumptions. LTV is typically lower on cottages than on urban properties because of reduced liquidity, but the deal can be done at up to 65% LTV in established cottage markets. See the cottage and vacation page for the full recreational property framework.

Ready to Finance an STR Property?

Same-day commitment. No income classification issues. Equity-based underwriting.

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