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Private · After Bankruptcy

Private Mortgage After Bankruptcy — Equity-Based Financing

If you have equity or a substantial down payment, a private mortgage can sometimes fund soonest after a discharge — because it's underwritten on your property's equity, not your credit score. Subject to lender approval.

Equity-based approvalOften the earliest optionCan fund quicklyScore-agnosticBridge to B/AConfidential
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FSRA #13737| 5-min pre-qualification

Written by the Mortgage Squad Advisors Editorial Team · Reviewed by Surrayya Afzal, Principal Broker, FSRA #13737 · Updated August 2026 · Reviewed quarterly; next review November 2026

Bank said no? Need cash fast?
Private funding, often in days.
A short-term mortgage based on your home's equity, not your credit score. Every fee disclosed in writing before you sign.
Typical funding window
7–14days
faster when title, appraisal and legal are clean; not guaranteed
Max LTV
75-85%
Term
6-24 mo
Exit
A-lender
We use private as a bridge — never the destination. Exit plan to A or B-lender is on every file.
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When does a private mortgage make sense?
FSRA #13737| 15+ languages

Right after a discharge, your credit is low and B-lenders may want to see re-established trade lines first. But if you have equity in a home — or a strong down payment on a purchase — you may not have to wait. A private lender underwrites the property's equity rather than your bureau, so it can often fund soonest after a bankruptcy. It costs more, so it's used as a bridge, not a destination — and every approval is lender- and file-dependent.

The short answer

A private mortgage after bankruptcy is often the earliest financing available — because a private lender underwrites your equity first and is largely score-agnostic, a discharged borrower with a home (or a strong down payment) can sometimes qualify before their credit is re-established. It’s the fastest and most expensive tier, used as a bridge to cheaper B- or A-lender pricing. Subject to lender approval. See the mortgage after bankruptcy hub.

What is a private mortgage after bankruptcy?

A private mortgage after bankruptcy is equity-based financing from a MIC or individual lender arranged after your discharge. Because a private lender lends mainly against the equity in your property (not your credit score), it can sometimes fund soonest — before re-establishment is complete — where you own a home with equity or bring a substantial down payment. It’s the fastest, most flexible and most expensive tier, used deliberately as a bridge.

Instant check · no credit pull

Your path back to a mortgage

Tell us where you are — we'll map the realistic timeline and the exit to A-lender pricing.

Situation
Status
19 months
Time since discharge
B-lenders — with 2 clean re-established tradelines
Where you stand today
~5 months
Estimated time to A-lender pricing

Re-establish 2 clean tradelines (secured card + small loan), reported on time, utilization under 30% — that’s what moves your score toward the A-lender exit.

Estimate only — not an approval. This is a simplified guide based on typical timelines. Your actual path depends on your full credit rebuild, income, equity and each lender’s and insurer’s own criteria, and is subject to lender review.

Ask Maya about thisGet pre-approved free Estimates only — a licensed advisor confirms your file. FSRA #13737.

Or ask Maya directly:

Do I qualify for a private post-bankruptcy mortgage?What documents will I need?How fast can this close?
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Why private can fund soonest after a discharge

The other lender tiers lead with your credit; a private lender leads with your equity. B-lenders generally want to see re-established trade lines before funding a post-bankruptcy file, and insured A-lender files typically need at least two years since discharge plus two years of re-established credit.Sagen The bankruptcy itself usually stays on your credit report for 6 years after discharge (7 years at TransUnion in Ontario).FCAC A private lender underwrites the security in your property — the equity — and is largely indifferent to a low score, so a discharged borrower with a home or a substantial down payment can sometimes qualify before re-establishment is complete.

That’s why private is often the earliest option after a discharge. The trade-off is cost: private is the most expensive tier, priced for the equity risk and the speed — for a dated benchmark, CMHC reported the 25 largest private lenders (mortgage investment entities) averaged about 9.6% on single-family mortgages in Q3 2025, plus lender and broker fees.CMHC So it’s used deliberately, as a bridge for a genuine need — a purchase you can’t defer, an equity take-out that solves a real problem — not as a place to stay. Every approval is subject to lender review.

The exit is the whole point

A private mortgage after bankruptcy only works if it ends. Because it’s the most expensive tier, the plan from day one is to climb off it: use the private money now, keep rebuilding credit, and refinance to a B-lender as your trade lines season, then to an A-lender as you approach the two-year-post-discharge mark with clean credit.

We set a refinance-trigger target at the first funding and monitor your recovery, so you move down the cost ladder as soon as you qualify rather than carrying private pricing longer than necessary. Match the private term to that plan — a short term that matures around when you expect to qualify for cheaper financing minimizes any prepayment cost. See the full lifecycle and the cheaper tiers on our mortgage after bankruptcy hub and the timeline guide.

What you get

Why Canadians choose Mortgage Squad Advisors.

Equity-based approval — underwrites your property, not your credit score
Often the earliest financing available after a discharge
Largely score-agnostic — works before re-establishment is complete
Can fund quickly where you have equity and a clear file (no guaranteed timeline)
Existing first mortgage can stay in place — a second where it's cheaper
Used as a deliberate bridge to cheaper B- or A-lender pricing
A mapped exit plan from day one
All lender + broker fees disclosed in writing before you commit
How it works

Three simple steps, no pressure.

1

Equity snapshot

Your discharge date, and your home value and mortgage balance (or your down payment on a purchase). Private approval turns mainly on the equity, so this tells us quickly what's possible. No bureau pull to begin.

2

Structure the private deal

A private second behind your existing first, or a full private refinance/purchase — whichever costs less. We disclose the rate, LTV, fees and term in writing before you commit.

3

Bridge + exit

We use the private mortgage as a bridge and set a refinance-trigger target to move you to a B-lender and then A-lender pricing as your credit re-establishes.

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FAQ

Common questions, answered.

Don’t see yours? Ask Maya — instant answer, any time.

Can I get a private mortgage right after bankruptcy?
Sometimes — a private lender underwrites your equity, not your credit score, so a discharged borrower with a home (or a substantial down payment) can sometimes qualify before re-establishment is complete. It's the earliest option for many post-bankruptcy files, subject to lender approval.
How much equity or down payment do I need?
Private files are equity-based, typically lending to about 65–75% loan-to-value.basis On a purchase, expect a larger down payment (commonly ~25–35%). The more equity or down payment you bring, the easier and cheaper the deal. Illustrative and varies by file.
Does my credit score matter for a private mortgage?
Far less than for a bank. Private lenders are largely score-agnostic because the property's equity is the security. A very low post-bankruptcy score won't rule you out if the equity supports the deal.
How fast can it fund?
Private files can often fund within days once an appraisal is done and the lawyer is instructed, but it depends on appraisal, title, legal steps, lender and documentation — no guaranteed closing time.
What does it cost?
Private is the most expensive tier — CMHC reported the 25 largest private lenders averaged about 9.6% on single-family mortgages in Q3 2025, plus lender and broker fees.CMHC It's a temporary premium; the plan is to refinance to cheaper B- and A-lender pricing as your credit recovers. All fees disclosed in writing.
Isn't private lending a trap?
Only without an exit. Used as a short bridge with a mapped plan to refinance to cheaper pricing, it's a precise tool. We set the exit on day one and match the term to it, so you don't carry private pricing longer than necessary.
When can I move off the private mortgage?
As your credit re-establishes — first to a B-lender as trade lines season, then to an A-lender, typically once you're at least two years past discharge with two years of re-established credit.Sagen We set a refinance trigger and monitor your file. See our hub.

Related products

Mortgage after bankruptcy (hub)Private mortgageB-lender mortgageAlternative lendingGuide: how soon after bankruptcy?Guide: rebuild credit

Sources & references

Figures on this page are sourced below and re-checked each quarter. Rates, insurer rules and lender policies change — confirm anything you plan to act on with a licensed advisor.

  1. 1. Canada Mortgage and Housing Corporation (CMHC), Residential Mortgage Industry Report (Q3 2025) — The 25 largest mortgage investment entities (private lenders) averaged about 9.6% on single-family mortgages in Q3 2025.
  2. 2. Sagen, Covenant underwriting guidelines (accessed September 2026) — Insured files after bankruptcy or a proposal: discharged (or proposal completed) at least two years, with at least two years of re-established credit.
  3. 3. Financial Consumer Agency of Canada, How long information stays on your credit report (accessed September 2026) — A first bankruptcy is usually removed 6 years after discharge; TransUnion keeps it 7 years in Ontario, Newfoundland and Labrador, PEI and Quebec.
  4. 4. Mortgage Squad Advisors rate desk (internal verification), Illustrative private LTV and pricing ranges (reviewed August 2026) — Private files typically lend to about 65–75% LTV, equity-based, and fund faster than institutional lenders; illustrative and subject to lender/file — not a quote.

Ready when you are.

No obligation and no credit check to start. A licensed advisor reviews your file with you, and Maya, our AI assistant, can answer quick questions any time.

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