Getting out of a private mortgage
Getting Out of a Private Mortgage in Ontario
If you're in a private or B-lender mortgage right now, you probably didn't plan to stay there — and you shouldn't. I'm Lucia Gugliuzzi, a licensed Mortgage Broker with 22+ years helping people across Vaughan, York Region, the GTA and all of Ontario, and a big part of what I do is getting borrowers out of high-cost private mortgages and back into prime lending the moment they're ready.
A private mortgage is meant to be a bridge, not a home. The higher rate and the lender fees that often come with it add up fast, so the real goal from day one is the exit — refinancing back to an A-lender (or a strong B program) as soon as your file can support it. Whether someone else set up your private deal or I did, I'll look at where you stand and build you a clear, honest plan to graduate. On the rare file where a fee applies I disclose it in writing up front. Approvals always depend on lender criteria.
Who this helps
Your private term is ending soon
Private mortgages often run just 12 months. If yours is maturing and the lender wants to renew at the same high rate (plus another fee), that's the moment to see whether you now qualify to move back to a bank instead.
Set up by another broker and feeling stuck
Plenty of people are placed in a private mortgage and then never hear about the way out. I'll review your file with fresh eyes and tell you honestly whether you can exit now, or exactly what has to change first.
Your situation has improved
Credit rebuilt, a consumer proposal cleared, two full years of self-employed income filed, or a probation period finished — these are the milestones that often make an A-lender possible again. We check your readiness against real lender criteria.
The payments are squeezing you
If the private rate and fees are straining your cash flow, waiting isn't free. We weigh the cost of staying against any penalty to leave, so you can see the real numbers rather than guess.
What makes an exit different from a regular refinance is that we're working backwards from a deadline and a target. Most private mortgages are short, so we start by mapping three things: when your current term matures, what the lender will charge to stay or to leave, and exactly which boxes an A- or B-lender needs you to tick to take you on. From there it's a checklist with a date on it — rebuild this, season that, document the other — so that when your term ends you're stepping into a better mortgage instead of renewing into another expensive one. Because I work through Mortgage Architects (Lic. 12728) with access to 50+ lenders, I can line up the landing spot, not just point at the door.
The most common mistake I see is people sitting in a private mortgage far longer than they need to, simply because no one told them they were ready to leave. The second is the opposite — trying to bolt early and getting surprised by the penalty or by a stress-test number they don't yet meet. Both come from not having the math in front of you. A refinance back to prime is re-qualified under the federal stress test and is generally capped around 80% of your home's value, and refinanced mortgages can't be default-insured, all of which shapes what's possible and when. I'll walk you through those rules plainly and point you to canada.ca and CMHC to confirm the current details for your own situation.
My approach is simple: diagnose, plan, and then actually call you when it's time. On our first conversation I figure out why you ended up in a private mortgage and what specifically needs to change to leave it. We set a target exit date and I check in well before your term is up so we're ready to move — not scrambling. If the smart move is to wait a few months and exit cleanly, I'll tell you that too. The whole point is to spend as little time, and as few dollars, in alternative lending as your situation allows.
What you’ll typically need
- Government-issued photo ID for each applicant
- Your current (private/B) mortgage commitment and statement, showing rate, fees, balance and maturity date
- Most recent property tax bill and home insurance details
- Proof of income — recent pay stubs and T4s, or two years of T1 Generals and Notices of Assessment if self-employed
- Documents showing what has improved (e.g. proof a consumer proposal is paid/discharged, updated credit, recent business financials)
- Statements for any debts you'd like to consolidate into the exit
- A recent appraisal or estimate of your home's current value, if you have one
- A void cheque or pre-authorized debit form for the new payment
Here the Discovery and Strategy steps do the heavy lifting: we diagnose why you're in a private mortgage, set a written target exit date, and line up the A- or B-lender landing spot before your term ends — then move through pre-approval (typically 24-48 hours), application and closing.
Today’s rate — for your file
Today’s best rate — for your file
I shop 50+ lenders so you don’t have to.
Rates change daily and depend on your down payment, credit, property and term — so a single number on a webpage rarely matches what you’ll actually get. I compare 50+ lenders to find your best rate. Book a 15-minute call for a live, personalized quote.
How it works
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Discovery call
A free, no-obligation conversation about your goals, your situation, and what’s realistic.
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Document review
I review your full picture — income, credit, down payment — and tell you honestly where you stand.
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Lender matching
I compare 50+ lenders to find the product and rate that genuinely fit your file.
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Application
I package and present your application to the right lender to give it the best chance.
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Approval & closing support
I guide you through approval and closing — and stay in your corner after. (Approvals depend on lender criteria.)
Private Mortgage Exit — your questions
Can I get out of my private mortgage before the term ends?
Sometimes, yes — but we check the penalty first. Many private mortgages are short and may have a fee or interest charge to break early, so I calculate the cost of leaving now against the cost of staying to maturity, then we decide based on the real numbers. Either way, leaving depends on qualifying with a new lender.
How do I know if I'm ready to move back to a bank?
It comes down to what put you in a private mortgage in the first place and whether it's been fixed — rebuilt credit, a cleared consumer proposal, two years of self-employed filings, or steady employment. I review your file against current A- and B-lender criteria and tell you honestly whether you qualify now or what's left to do.
Another broker set up my private mortgage — can you still help me exit?
Absolutely. You're free to work with whichever broker you choose, and many people come to me specifically for the exit. I'll review your existing file, map the path back to prime lending, and handle the switch when you're ready.
