Private & alternative lending

When conventional credit falls short — private capital fills the gap.

Private first and second mortgages, MIC financing, and alternative credit solutions for situations that require speed, flexibility, or underwriting outside conventional bank policy.

Discuss your file See mandates

At a glance

Loan typesPrivate 1st/2nd mortgage, MIC, alt lender

Typical LTVUp to 75–80% on real estate

Term6 months – 3 years (typically short-term)

Commitment speed48–72 hours for qualified files

Use casesBridge, time-sensitive, bank declines, transitional

Exit strategyConventional refinance or sale

What we finance

Structures we arrange.

Private 1st mortgage

Private first mortgage

First-position mortgage on residential or commercial real estate — arranged through our MIC and private lender network when conventional lenders won't proceed. Used for time-sensitive acquisitions, bridge, and complex income situations.

Committed in days, not weeks

Private 2nd mortgage

Private second mortgage

Second-position financing behind an existing first mortgage — used to access equity without disturbing the existing first, or to top up financing to the required amount.

Access equity without refinancing the first

MIC financing

Mortgage Investment Corporation (MIC)

MICs are pooled private mortgage funds that lend on real estate at commercial rates. Faster, more flexible underwriting than banks — ideal for transitional situations with a clear exit.

Flexible underwriting; asset-based

Alt lender

Alternative institutional lenders

Regulated alternative lenders who operate between the major banks and private capital — typically offering competitive rates with more flexible qualification criteria than the Big Five.

Better rates than pure private; more flexible than banks

Equity takeout

Equity release — quick close

Need to access equity quickly from a property you own? Private lenders can advance against real estate equity significantly faster than conventional lenders, with simpler documentation.

Equity access in 5–15 business days

Transitional

Transitional and workout financing

Situations involving covenant breaches, maturity defaults, or lender relationship breakdown — where short-term private capital bridges the gap while a permanent solution is arranged.

Sensitive situations handled with discretion

The process

From first call to funded deal.

Situation assessment

We understand the urgency, the asset, and the exit. Speed requires clarity upfront.

Lender selection

We match your file to the specific private lender or MIC most likely to commit quickly.

Commitment

For straightforward files, a commitment letter within 48–72 hours of receiving complete details.

Legal & close

We coordinate directly with solicitors on both sides. Private closings are typically faster than conventional.

Exit planning

We begin arranging conventional refinancing immediately after close — the exit is as important as the entry.

Why Arise

The Arise Capital advantage.

Speed is our primary value in private lending

Private lending situations are almost always time-sensitive. We have relationships with lenders who can issue a commitment letter within 48 hours of a complete file submission — and we know exactly what 'complete' means for each of them.

Asset-based underwriting — not income-based

Private and MIC lenders underwrite primarily against the asset — its value, location, and liquidity. This means complex income situations, recent business challenges, or credit history that doesn't meet bank standards are far less of a barrier.

Exit strategy is always part of the plan

Private financing is expensive relative to conventional. We never arrange private capital without simultaneously working on the exit — whether that's a conventional refinance, a sale, or a stabilisation plan. Short-term cost is only acceptable with a clear path to long-term reduction.

Discretion and confidentiality

Private lending situations often involve sensitive circumstances — distress, relationship breakdown with a primary lender, or urgent personal situations. We handle every referral and client conversation with full confidentiality.

Frequently asked

Common questions.

How much does private lending cost compared to conventional?

Private mortgage rates in Ontario typically range from 8–14% annually for first mortgages and 12–18% for second mortgages, depending on the lender, LTV, property type, and risk profile. There are also lender fees (typically 1–3% of the loan amount) and legal costs. The higher cost is the price of speed and flexibility — and it's only appropriate when there is a clear, time-bound exit to a lower-cost conventional facility.

Is private lending the same as hard money lending?

The terms are often used interchangeably. In the Ontario context, private mortgages and MIC financing are the most common forms. They share the key characteristics: asset-based underwriting, faster turnaround, higher rates, and shorter terms than conventional bank financing. The source of capital varies — individual private investors, pooled MIC funds, or registered alternative lenders.

How do I repay a private mortgage?

Most private mortgage terms are 1–3 years, with interest-only payments during the term and a balloon repayment at maturity. The exit is typically a refinance to a conventional lender once the situation that required private financing has resolved — income has normalised, a property has stabilised, or a credit issue has been addressed. We structure the exit simultaneously with the private placement.

When is private lending the right choice?

Private lending is appropriate when: the situation is time-sensitive and conventional timelines won't work; the file doesn't qualify for conventional financing but has strong real estate security; a short-term bridge is needed while a permanent solution is arranged; or an emergency (maturity default, power of sale threat) requires immediate capital. It is not appropriate as a long-term financing solution due to cost.

When conventional credit falls short — private capital fills the gap.

Structures we arrange.

From first call to funded deal.

The Arise Capital advantage.

Common questions.

Bring us your file.