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Ontario residential property

Deposit Loans

Client Short on Cash & Needs the Deposit Now? We can Help!

Your client needs the deposit before sale proceeds arrive. We bridge that gap with same-day commitments and short-term funding.

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Stonefield Capital provides short-term deposit loans, giving real estate buyers access to deposit funds before their existing sale property closes or when they don't have access to cash. As long as there is enough equity in the property, we get you the money you need, fast.

When You Need a Deposit Loan

Deposit loans solve a specific timing problem in Ontario real estate: you need to deliver a purchase deposit before the existing property has closed and released proceeds. Without a deposit loan, the buyer risks losing the purchase deal, or worse, faces a breach of contract claim for failing to deliver the deposit on time.

Banks do not offer standalone deposit lending, leaving brokers and borrowers scrambling for a solution when closing dates don't align. Stonefield Capital fills this gap with fast, equity-based deposit financing that keeps deals on track.

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Stonefield Insider Tip: Submit Before the Deposit Is Due

Don't wait until the deposit deadline to start the process. Submit the deal before you start the buying process if you know there is a timing gap or a lack of cash. Stonefield can issue a same-day commitment but the legal process still takes time. The earlier you submit, the smoother the funding and the less stress on the buyer.

Common Deposit Loan Scenarios

Deposit loans address specific timing gaps that no other lending product covers.

Closing Date Gap

Purchase deposit is due before sale proceeds are available. The timing doesn't line up.

Multiple Deposit Installments

The APS requires staged deposits and your client's funds are tied up in their current property.

Competitive Offer

A larger deposit strengthens the offer in a bidding war, but the cash isn't liquid yet.

New Build Deposit

Builder requires deposit installments over months while the existing property hasn't sold.

Downsizing

Selling a larger home with significant equity and buying smaller but the purchase needs a deposit before the sale closes.

Investment Purchase

Equity is locked in existing properties. A deposit loan unlocks it for the next acquisition.

In most scenarios, the deposit loan is repaid from sale proceeds or purchase financing - making it one of the cleanest exit strategies in private lending.

How the Process Works

Submit the Deal

Broker submits details on properties owned by the borrower, including deposit requirements and timeline.

Same-Day Assessment

Stonefield assesses the equity position across the available properties and the exit strategy. Commitment issued same day.

Fast Funding

Deposit funds are advanced quickly to make sure the buyer doesn't lose the property or face a breach of contract.

Frequently Asked Questions

What is the maximum deposit amount Stonefield can fund?
Deposit loan amounts are sized to the equity available in the existing property and the deposit requirement on the purchase — typically up to 70% LTV in the GTA and 65% in secondary markets.
How quickly can a deposit loan close?
Same-day commitment is standard. Funding can happen in as little as 48-72 hours when title is clear and legal counsel is ready. Submit as early as possible and have your lawyer lined up.
What happens if the sale of my existing property falls through?
If the sale falls through, the deposit loan remains in place and repayment obligations continue. We underwrite the risk upfront by testing the equity position and exit strategy against a slower sale. In most cases the property is relisted — but if timing pressure is severe, we can also restructure into a longer-term private mortgage while the property is re-marketed.
What is the typical term for a deposit loan?
Deposit loans are short-term — typically 30 to 120 days, structured to align with the expected closing of the borrower's sale property. The loan is repaid directly from sale proceeds at close, making the exit one of the cleanest structures in private lending.
Does a deposit loan require an appraisal?
In most cases, no. Stonefield uses its own comparable sales analysis on properties — critical when the deposit deadline is days away and there's no time for a formal appraisal. On the rare file that needs one, we flag it in the initial response so it doesn't derail the timeline.

Need a Deposit Loan Fast?

Same-day commitment. Short-term funding to bridge the closing gap.

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