Reviewed by Micky Khaneka, licensed mortgage broker
Private lending in Toronto is a short facility used when a bank mortgage will not be ready, or will not fit, before a deadline.
MKG Mortgages looks at the property, the mortgage already on it, and how the private loan gets replaced. Without an exit, we do not dress it up as a solution.
There has to be equity, a first mortgage that allows the structure if a second is used, and a dated way out. The way out is a firm sale, a bank mortgage that can close, or another source you can document.
Illustrated condo value: $700,000, with a $420,000 purchase still needing $280,000 after the down payment because the bank file slipped. A one-year private facility of $280,000 at an illustrative 8.9% interest-only is about $2,080 a month, plus the plan to replace it with a bank mortgage once the missing condition is cleared.
These are the kinds of second and private mortgages files we structure in Toronto.
Illustrative example
The challenge. The bank file was one condition short of funding on that date.
How MKG structured it. A private advance covered the closing, with the bank mortgage named as the exit once the condition was cleared.
Illustrative example
The challenge. The sale was firm and closed a few weeks after the purchase.
How MKG structured it. A short bridge used the equity from the sale as the repayment.
Illustrative example
The challenge. The bank would look again after a defined period, and the house could support a second mortgage now.
How MKG structured it. We placed a private second with that refinance as the way back to prime.
The exit date is part of the file before an advance.
Liberty Village and downtown condos are a common short-term file because a status certificate or a credit issue collides with a firm closing. The Annex and Leslieville houses support larger equity requests. Midtown, Etobicoke, and Scarborough are where a sale and a purchase often have to overlap.
Liberty Village and downtown condos are a common short-term file because a status certificate or a credit issue collides with a firm closing. The Annex and Leslieville houses support larger equity requests. Midtown, Etobicoke, and Scarborough are where a sale and a purchase often have to overlap.
The note below is paraphrased from a public Google review. It is one client's experience, not a promise that the next file ends the same way. A rate in a client's words is not an offer from MKG. The lender still decides.
A client with a tight closing wrote that the costs and the way out were set out before anything moved ahead.
Paraphrased from a public Google review of MKG Mortgages. Names and identifying details are left out.
Micky Khaneka is a licensed mortgage broker, FSRA M21002608, at FLOW Lending Group, Brokerage #12864. Canadian Mortgage Professional named him to the CMP Top 75 for 2026, at number 15 in Canada. The lender still decides. The lender still decides.
Micky Khaneka, licensed mortgage broker, M21002608, FLOW Lending Group, Brokerage #12864
The firm serves clients in English, Hindi, Punjabi and Bengali.
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People ask how second and private mortgages works on a Toronto property, and what documents come first. The short answers below stay on this page. The lender still decides, and the office is in North York. The lender still decides.
When you need the money for years, or when the condo building will not support even a private advance. A short term does not fix a property no lender will touch.
A dated plan to replace the private loan, usually with a bank mortgage after a credit item, a status certificate, or a sale is resolved. We write that plan down before the advance.
Yes. Private lenders weigh the property heavily, and they still ask how the interest is paid. A file with no income story is not automatically a private file.
If the sale is firm and the dates overlap, a bridge can cover the gap. If the sale is only listed, we treat the proceeds as uncertain.
Faster than a bank, when the documents are complete. A missing status certificate still waits on the condo corporation. Speed does not invent that document.
The other services in this list each have a Toronto page. Open the one that matches the file, whether that is a purchase, a refinance, a renewal, a consolidation, self-employed income, or a private mortgage. The lender still decides. The lender still decides.
The Toronto hub names the neighbourhoods, the housing that shows up, and a local example. It links back to these service pages. The office that handles the file is in North York, and the lender still decides. The lender still decides.
Toronto area hubSecond and Private Mortgages is written for each city MKG serves, not only Toronto. The local page changes the neighbourhoods and the example. The rules of the product stay the same, and the lender still decides. The lender still decides.
Send the agreement or the mortgage statement for the Toronto property, or book a call. The first conversation is free. It is a review of this file, not an approval, and the office that handles it is in North York.
Sources. FSRA — mortgage brokering · FCAC — mortgages Published rules change. Read the current page, and confirm tax with your lawyer, before you rely on a figure.
Any rate or payment mentioned is illustrative and on approved credit (OAC). It is not a quote, a commitment, or a current offer.