FSRA Lic. #13722info@stonefieldcapital.ca
Ontario residential property

Rental Properties

Banks Capped Your Rental Portfolio? Equity Says You Can Keep Growing

No property count limits. No rental income stress test. Equity-based underwriting for the investors banks won't serve.

Submit a DealContact Stonefield

Stonefield Capital finances rental and investment properties in Ontario for investors who face barriers with traditional lenders due to rental income treatment, property count limits, or credit factors. We underwrite based on the property's equity and the borrower's exit strategy, without applying the rental income reductions and stress tests that banks require.

Why Banks Decline Rental Property Deals

Traditional lenders apply strict rules to rental and investment property financing that disqualify many experienced investors. Banks reduce rental income by 50% or more when calculating debt service ratios, cap the number of financed properties at four or five, and apply the federal stress test to every new mortgage, even when the properties have strong equity and cash flow.

Portfolio investors who have built successful rental businesses often find themselves locked out of conventional financing entirely. Stonefield Capital exists to serve these investors with equity-based underwriting that reflects the real value of the assets in their entire portfolio.

💡

Stonefield Insider Tip: Rental Income Treatment

Here's a move experienced portfolio investors use: use blanket mortgages. Take a short-term private mortgage across multiple propreties (including principal residences) to acquire a new rental, stabilize it with tenants, then refinance into a conventional mortgages when the scenario allows. Banks are far more likely to approve a refinance on a performing rental than a purchase, especially when the property is already cash-flowing and appraised at its improved value. Stonefield's short terms and open terms align perfectly wtih your flexibility and cash flow.

Situations We See from Rental Investors

Experienced investors face unique barriers that banks create through rigid policy, not sound lending judgment.

Property Count Maxed

Banks cap at 4-5 financed properties. Your portfolio shouldn't stop growing because of an arbitrary limit.

Rental Income Reduction

Banks discount rental income by 50%+, destroying your debt service ratios on paper.

Self-Employed Investor

Your properties generate cash flow and you can carry the debt, but the bank doesn't believe that.

Stress Test Failure

The federal stress test pushes qualifying rates 2%+ above actual, disqualifying solid deals.

Equity Takeout

Pulling equity from an existing rental property.

Time-Sensitive Acquisition

A rental property deal requires a fast close. Banks don't act quick enough to match the timeline.

In every case, Stonefield looks at the property's equity and your exit strategy, not the bank's restrictive policies.

What Investors Should Know

No Property Limits

Finance as many rentals as your equity supports. We have no portfolio size cap, each property is assessed individually.

No Stress Test

We do not apply rental income haircuts or the federal stress test. Qualification is equity, liquidity and exit strategy. It's as simple as that.

Fast Closings

Same-day commitments and fast closings for time-sensitive acquisitions. Don't lose a deal to a bank's timeline.

Frequently Asked Questions

Is there a limit on how many rental properties I can finance?
No. Chartered banks typically cap financed properties at 4 or 5 per borrower; Stonefield has no portfolio size limit. Each property is assessed on its own equity position, with the overall exit strategy reviewed across the portfolio. Portfolio investors regularly finance more properties with Stonefield.
How does Stonefield treat rental income when qualifying?
We don't haircut rental income and we don't apply the federal stress test. Banks discount rental income by 50%+ and add a 2%+ qualifying rate to the stress test — which disqualifies strong deals on paper. Stonefield qualifies on property equity and exit strategy, so a cash-flowing rental with real tenants is evaluated on what it actually is, not what the bank's model says it might be.
What LTV can I expect on a rental property?
Up to 70% LTV in major urban centres (Toronto, GTA, Vaughan, Richmond Hill) and 65% in secondary markets, stepping down as property liquidity decreases. Rental-specific factors — tenant stability, lease term, cash flow — can adjust the rate but don't change the LTV cap. Each property is assessed on its own equity position.
Can portfolio investors with multiple properties qualify?
Yes — portfolio investors are one of our core client segments. Banks decline these borrowers because of rigid property-count limits (typically 4–5 financed) or aggregated debt-exposure rules. Stonefield underwrites each property on its own equity merits, without cross-contaminating qualification across the portfolio. Cross-collateralization is also available when a single property the full amount of the loan request.
Can I use a private mortgage to acquire a new rental property?
Yes. Common rental investor use cases: acquiring a new rental with fast-close financing, refinancing an existing rental to pull equity, funding a down payment on another property from existing portfolio equity, or bridging a purchase ahead of a 12-month rental history that unlocks bank refinance. Stonefield structures the deal around the asset's equity and your exit plan.

Ready to Finance a Rental Property?

Same-day commitment. No property count limits. Equity-based underwriting.

Submit a DealTalk to Us First