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Ontario residential property

HELOC Alternative

A Private Mortgage HELOC Alternative in Ontario

Need flexible access to equity without bank approval? Our multiple draw mortgage gives borrowers HELOC-like flexibility through private lending.

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Stonefield Capital offers a private multiple draw mortgage in Ontario that functions like a HELOC but without the bank's income and credit requirements. Borrowers access approved funds in draws as needed, with equity-based qualification and no appraisals required.

When a Private Multiple Draw Mortgage Makes Sense

Banks offer HELOCs to borrowers with strong credit, verifiable income, and established banking relationships. When those criteria aren't met due to self-employment, bruised credit or non-standard income, the bank says no, even when significant equity exists.

Stonefield Capital's multiple draw mortgage provides the same flexible access to funds. Borrowers are approved for a total facility amount based on property equity, then draw funds as needed throughout the term. This gives the borrower the flexibility to only pay interest on the funds being used, rather than the entire loan.

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Stonefield Insider Tip: Multiple Draws vs. Revolving Credit

It is important to understand that this is a Multiple Draw Mortgage, not a revolving bank HELOC. While a traditional HELOC allows you to pay down and re-draw funds like a credit card, our facility is designed for funding as you need it, not for frequent small repayments or daily banking. The Common Sense Win: You only pay interest on the funds you have actually drawn. If you are approved for $200,000 but only need $50,000 today, you save thousands by not paying interest on the full amount. This structure gives you the flexibility to access capital as you need it while keeping your interest costs as low as possible. Note on Fees: Lender fees are typically charged on the total approved limit at the first advance. However, we believe in flexibility. If you prefer to have these fees deducted with each individual draw instead, just request it during underwriting!

Common Scenarios for Multiple Draw Mortgages

A multiple draw mortgage solves the same problems a HELOC would but without the bank's gatekeeping.

Home Renovation Funding

Draw funds in stages as renovation work progresses. No need to take the full amount upfront.

Self-Employed Cash Flow

Business owners who need flexible access to equity but can't prove income to the banks rigid standards.

Investment Opportunities

Access equity quickly when time-sensitive investment opportunities arise, without a full re-application.

Debt Management

Manage debt payments more efficiently.

Estate or Family Needs

Ongoing access to property equity for estate management, family support, or transitional situations.

Bank Declined HELOC

The bank said no to a HELOC despite strong equity. We approve based on the asset, not the borrower's paperwork.

In every case, sufficient property equity and a clear exit strategy are the requirements, not the bank's income and credit checklist.

How Our Multiple Draw Mortgage Works

Equity-Based Approval

We assess your property's current market value and approve a total facility amount depending on location and property type.

Draw as Needed

Once approved, draw funds in portions throughout the term. Interest is charged only on the amount drawn, not the full facility.

Fast Access

Individual draws processed quickly (often same-day) with minimal paperwork once the mortgage is in place.

Frequently Asked Questions

Is a multiple draw mortgage the same as a HELOC?
Similar, not identical. A bank HELOC is revolving — you can draw, repay, and re-draw indefinitely. Stonefield's private multiple draw mortgage is a fixed-term mortgage (typically 3 to 12 months) with the flexibility to draw funds in portions as needed. Interest is charged only on amounts drawn. It solves the same core problem, flexible access to equity without a lump sum for borrowers who can't qualify for a bank HELOC.
What is the typical term for a multiple draw mortgage?
Typical terms run 3 to 12 months with renewal options. The standard exit is refinancing into a bank HELOC or conventional mortgage once the borrower's credit, income, or financial situation supports it.
Do I pay interest on the full approved amount?
No. Interest is charged only on the amount actually drawn, not the full approved facility. Example: if you're approved for $200,000 but only draw $50,000, you pay interest on $50,000, saving thousands versus a standard private mortgage that advances the full amount at closing. Lender fees are typically charged on the approved limit at first advance, though deduction per-draw is available on request.
What documents do I need to apply?
Minimal documents are required to apply. Property details and photos, a brief description of how the funds will be used, and your exit strategy. No income verification, no minimum credit score. We underwrite on the property's equity position. Additional documents will be requested at a later stage.
Can I use this for a rental or investment property?
Yes. Multiple draw mortgages are available on residential, rental, and investment properties across Ontario. LTV scales with property type and location: up to 70% in major urban centres, 65% in secondary markets, and lower on non-standard or rural properties. Common investor use cases include staged renovation funding and flexible draws for time-sensitive acquisitions.

Need Flexible Access to Your Equity?

Same-day commitment. Draw funds as needed. No income verification.

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