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 first —
credit score second.
Private underwriting lends against the property's security, not your bureau. That's why it can fund before other tiers are ready.
Equity-Based Approval
Private lenders underwrite your property's value, not your credit score. A discharged borrower with home equity or a strong down payment can often qualify before re-establishment is complete — subject to lender approval.
Often the First Financing Available
Private is frequently the earliest tier to fund after a discharge. B-lenders typically want re-established trade lines first; private lenders don't. It's the bridge that covers the gap — subject to lender approval.
A Deliberate Bridge — Not a Destination
Private is the most expensive tier and is used precisely: fund now, keep rebuilding credit, then refinance to B-lender and then A-lender pricing as your file seasons. We set the exit trigger on day one.
Every Fee Disclosed Before You Commit
Rate, LTV, lender fees, and broker fees — all in writing before you sign anything. No surprises at the lawyer's office. You approve every number first.
How a private mortgage
after bankruptcy works.
Equity snapshot first, structure second, exit baked in from the start.
Equity snapshot
Share your discharge date, 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.
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. You see every number first.
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. The exit is part of the plan from day one.
We can help across
many post-bankruptcy situations.
Tap any situation below to see how we approach it.
If you’re…You own a home with equity and were recently discharged
You own a home with equity and were recently discharged
You may be able to access a private second mortgage or refinance now — without waiting for your credit to rebuild. We assess the equity position first, no bureau pull to start. Subject to lender approval and LTV.
Check my equity optionsIf you’re…You need to buy a home before your credit is re-established
You need to buy a home before your credit is re-established
A private lender can fund a purchase based on your down payment (typically ~25–35%) rather than your credit score. We structure the deal with a mapped exit plan and match the term to your re-establishment timeline.
Start my private pre-approvalIf you’re…A B-lender declined you because your trade lines aren't seasoned
A B-lender declined you because your trade lines aren't seasoned
B-lenders generally want re-established credit after a bankruptcy discharge. A private bridge covers the gap — used for the minimum time needed, then refinanced when your trade lines qualify.
Explore the bridge planIf you’re…You want to stop renting as soon as possible after discharge
You want to stop renting as soon as possible after discharge
Private can sometimes fund within 1–2 weeks of appraisal and legal readiness, depending on the file. We align the term to your re-establishment window so you're not on private pricing any longer than necessary.
See how fast I can buyIf you’re…You're worried private lending could become a trap
You're worried private lending could become a trap
Only without an exit plan. We set the refinance trigger on day one, match the private term to your expected B-lender qualification window, and monitor your file. Private is a tool, not a destination.
See the full recovery pathIf you’re…You need to tap equity without breaking your existing mortgage
You need to tap equity without breaking your existing mortgage
A private second mortgage behind your existing first can sometimes unlock equity without triggering a prepayment penalty — often the lower-cost structure compared to a full private refinance.
Model the second mortgageWhy private is often
earliest — and costliest.
Each tier has a different admission threshold. Private leads with equity; the others lead with credit.
| Tier | Approval basis | Max LTV | Illustrative rate | Min re-establishment |
|---|---|---|---|---|
| PrivateEarliest | Equity / property value | ~65–75% | ~9.6% avg (CMHC Q3 2025) + fees | None required — score-agnostic |
| B-Lender | Credit + equity | Up to ~80% | ~6–8% (illustrative) | Re-established trade lines required |
| A-Lender (insured) | Credit + income + equity | Up to 95% | ~4–5% (illustrative) | 2 yrs post-discharge + 2 yrs re-established credit |
Illustrative only — your rate, LTV, and fees will vary by lender and file. Private rates sourced from CMHC’s Residential Mortgage Industry Report (Q3 2025). LTV ranges from Mortgage Squad Advisors rate desk (reviewed August 2026). Insured A-lender re-establishment requirements from Sagen covenant underwriting guidelines (accessed September 2026). All figures are for comparison purposes only; subject to lender approval. See the full post-bankruptcy tier guide.
Sources
CMHC — Canada Mortgage and Housing Corporation, Residential Mortgage Industry Report (Q3 2025). The 25 largest mortgage investment entities averaged ~9.6% on single-family mortgages in Q3 2025. cmhc-schl.gc.ca
Sagen — Covenant underwriting guidelines (accessed September 2026). Insured files after bankruptcy or a consumer proposal: discharged (or proposal completed) at least two years, with at least two years of re-established credit. sagen.ca
FCAC — 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. canada.ca
Mortgage Squad Advisors rate desk (internal verification, 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.
Common questions,
plain answers.
Equity, credit, costs, timelines, and the exit plan — answered directly.
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. 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 doesn't automatically rule you out if the equity supports the deal — subject to lender approval.
How fast can it fund?
Private files often fund in 1–2 weeks, faster when appraisal, title and legal are ready, 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. 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. We set a refinance trigger and monitor your file. See our hub at /mortgage-after-bankruptcy.
We’ll try to beat your rate.
If we can’t, we pay you $500.¹
¹ Rate Beat: eligible Big-6 bank written offers only · same product, term & amount · $500 paid to you or your nominated charity at closing · conditions apply
Find a private mortgage specialist in your city
Private mortgage approval is driven by your property's equity, not your postal code — but the lender network, deal structure, and exit plan we map for you all depend on the local market your property sits in.