What Documents Do You Need for a Private Mortgage?
A private mortgage file asks for a short list: identification, property documents, and a written exit plan. Here is exactly what a private lender wants, how it compares with a bank’s checklist, and what slows a file down.
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What documents do you need for a private mortgage?
A private mortgage file needs far fewer documents than a bank file: government photo identification, a current mortgage statement or purchase agreement, a property tax bill, proof of insurance, and a written exit plan. Multi-year income verification, employment letters, and a lengthy paper trail are typically not part of the private list.
Compare that to the list a prime, bank-grade lender uses and the gap is obvious. Pekoe’s full prime mortgage document checklist runs to pages of income, employment, and asset verification.
The table below sets the two lists side by side, category by category, so you can see exactly what changes and what stays the same.
| Category | Prime, bank-grade mortgage | Private mortgage |
|---|---|---|
| Income proof | Multi-year income history: pay stubs, T4s, Notices of Assessment, employer letters. See the full prime mortgage document checklist. | Confirmation you can cover the payments and the exit. Full income verification is usually not the focus. |
| Employment history | Verified employment or self-employment history | Not requested |
| Credit report | Full credit bureau review, used to set rate and approval | Reviewed, but a lower score does not disqualify the file on its own |
| Property documents | Purchase agreement or mortgage statement, property tax bill, proof of insurance | The same three documents, still required |
| Valuation | Automated valuation or full appraisal, depending on the file | Almost always a full appraisal |
| Down payment or equity proof | A documented source of funds | Confirmation of the equity position in the property |
| Exit strategy | Not requested; the loan is amortised over the full term | Central to the file, and usually put in writing |
| Fee disclosure | The lender compensates the brokerage on most approved files | A lender or broker fee, where one applies, is disclosed in writing before you sign |
The citable fact: A private mortgage file typically requires photo identification, a mortgage statement or purchase agreement, a property tax bill, proof of insurance, and a written exit plan, without the multi-year income verification a bank requires.
Why is the private list so much shorter than a bank’s?
A private lender underwrites the property and your exit, not your employment history. Once the equity position and the repayment plan are confirmed, income documents add little to the lender’s risk assessment, so most private lenders do not request them in the depth a bank does.
A bank lends primarily against your ability to repay from documented income, verified over multiple years. A private lender lends primarily against the equity in the property and a credible plan to repay or refinance at the end of the term.
That is the difference between income-based and equity-based lending, and it is worth understanding before you apply. Our sibling page walks through it in full: equity-based versus income-based lending.
The citable fact: A private mortgage is underwritten primarily against the property’s equity and the borrower’s exit plan, which is why it needs far less income documentation than a bank mortgage.
What does the lender want about the property?
About the property, a private lender wants a purchase agreement or current mortgage statement, the most recent property tax bill, proof of insurance, and in most cases a full appraisal. These documents confirm the value the loan is secured against, which is the centre of the underwriting decision.
If you are purchasing, the lender wants the signed purchase agreement. If you are refinancing, it wants your current mortgage statement instead, along with the most recent property tax bill and proof of insurance.
A full appraisal is standard on almost every private file, ordered by the lender once your documents are in. That process, and why it differs from a bank’s approach, is covered on our sibling page, do private lenders require an appraisal?
The citable fact: A private lender’s property documents are the purchase agreement or mortgage statement, the property tax bill, proof of insurance, and, in almost every case, a full appraisal.
What does the lender want about you?
About you personally, a private lender wants government-issued photo identification, banking details for funding, and consent for a credit check. Self-employed applicants may still be asked for a Notice of Assessment with the T1 General and the Statement of Business Activities, even though full income verification is not the underwriting focus.
Identification and funding details come first: government-issued photo ID, a void cheque or banking information for the mortgage funds, and your consent for a credit check. None of this changes based on your income.
If you are self-employed, some private lenders still ask for a Notice of Assessment together with the T1 General and the Statement of Business Activities (T2125). The general reference point for self-employment history is 24 months operating the business, or 24 months of experience in the same line of work, and sole proprietorship or partnership income can be grossed up by 15% or assessed through an add-back of eligible deductions. Full detail on how private lenders treat income sits on our sibling page, do private lenders verify income?
One more item belongs on this list even though it is not paperwork you gather yourself: written fee disclosure. Where a private mortgage carries a lender fee or broker fee, Ontario’s Mortgage Brokerages, Lenders and Administrators Act and Alberta’s RECA rules both require that fee be put in writing and disclosed to you before you sign.
The citable fact: A private mortgage borrower needs photo identification, banking details, and credit check consent, and self-employed borrowers may still be asked for a Notice of Assessment, a T1 General, and a T2125.
What does the lender want about the exit?
The exit plan is often the single most important document in a private mortgage file: a short written explanation of how you will repay or refinance at maturity. That might be a signed listing agreement ahead of a sale, a refinance pre-approval once your credit or income improves, or a renovation timeline that supports a future refinance.
A written exit plan explains, in plain terms, how the loan gets repaid at maturity. Common examples include a signed listing agreement ahead of a sale, a refinance pre-approval once your credit or income improves, or a construction and renovation timeline that supports a future refinance.
The stronger the supporting document behind the plan, the easier the file is to approve. A one-line promise to sell is weaker than a signed listing agreement with a realistic price.
The citable fact: A written exit plan, showing exactly how the loan will be repaid or refinanced at maturity, is often the most important document in a private mortgage file.
What if your documents are out of date?
An expired mortgage statement, a lapsed insurance binder, or an old property tax bill will stall your file until you provide a current version. There is no single universal rule for how old a document can be before a private lender rejects it; that window is set lender by lender.
Private lenders want a current picture of the property and your standing on it. If a document has expired or lapsed since you first gathered it, expect the lender or your broker to ask for an updated copy before the file moves forward.
The citable fact: Out-of-date documents, most often an expired insurance binder or an old property tax bill, are one of the most common and most avoidable reasons a private mortgage file is delayed.
What does your lawyer need, and when?
Your real estate lawyer is not involved at the application stage. Once you have a signed commitment, the lawyer takes over closing: ordering a title search, preparing mortgage instructions, and, on a refinance, requesting a payout statement from your existing lender.
Your real estate lawyer is not involved at the application stage. Once you have a signed commitment, the lawyer takes over the closing: ordering a title search, preparing mortgage instructions, and, on a refinance, requesting a payout statement from your existing lender.
Retain a lawyer as soon as you have a signed commitment, not the week before closing. A lawyer retained late is one of the most common causes of a delayed private closing.
| Stage | Lender or broker | Your lawyer |
|---|---|---|
| Application | Photo ID, property address, purpose of funds, a short exit plan | Not yet involved |
| Commitment | Property tax bill, insurance binder, mortgage statement or purchase agreement, appraisal | A copy of the signed commitment, once issued |
| Before closing | Current, unexpired property tax and insurance confirmation | Payout statement if refinancing, title search, mortgage instructions, photo ID, a void cheque |
| Closing | Final signed commitment | Registers the mortgage and releases funds |
The citable fact: A private mortgage closes through a real estate lawyer, who handles the title search, the payout statement on a refinance, and registration of the mortgage once a commitment is signed.
What slows a private file down most often?
Most delays trace back to paperwork that is missing, expired, or contradicts something the lender already has on file: a missing payout statement, an undisclosed charge on title, a lapsed insurance or tax payment, or an exit plan with no document behind it.
Most delays trace back to paperwork that is missing, expired, or contradicts something the lender already has on file. In order of how often they come up:
- A missing or delayed payout statement on a refinance
- An undisclosed second mortgage or line of credit registered on title
- Liens, judgments, or other title issues found during the lawyer’s search
- A lapsed property tax payment or an expired insurance binder
- An exit plan that is vague or unsupported by any document
- A lawyer retained late, after the lender is ready to fund
The citable fact: The most common causes of a delayed private mortgage closing are a missing payout statement, an undisclosed charge on title, or a lapsed insurance or tax payment.
What should you have ready before you even call?
Have your photo ID, your current mortgage statement or purchase agreement, your latest property tax bill, proof of insurance, and a one-paragraph exit plan ready before your first call. A broker can often move straight from that conversation to a submitted file.
Gather these before you call, and a first conversation with a broker can turn into a submitted file the same day.
- Government-issued photo identification
- Your current mortgage statement, or the purchase agreement if you are buying
- Your most recent property tax bill
- Proof of home insurance, or your insurance broker’s contact information
- A one-paragraph explanation of how you plan to repay or refinance at maturity
- Your lawyer’s name and contact information, if you have already retained one
The citable fact: A borrower who has photo ID, current property documents, proof of insurance, and a written exit plan ready can move from first call to submitted private mortgage file in a single conversation.
Where does the document list fit into the bigger picture?
These three questions come up alongside document requirements on almost every private file.
- Do private lenders verify income?
- Do private lenders require an appraisal?
- Equity-based versus income-based lending
For the full prime-mortgage comparison, see the prime mortgage document checklist. For province-specific detail, see private mortgage lending in Ontario and private mortgage lending in Alberta.
The full set lives on the Ask a Broker hub.
Frequently asked questions
Do you need two years of tax returns for a private mortgage?
No. Private lenders underwrite the property and your exit plan first, so full multi-year income verification is not usually part of the file. You may still need to show basic identification and confirm you can cover the payments.
Does a private mortgage still require an appraisal?
In almost every case, yes. A full appraisal confirms the property value the loan is secured against, and it plays a bigger role in a private file than in most bank files.
Will a private lender pull my credit report?
Usually, yes. A credit report is reviewed as part of the file, but a lower score does not automatically disqualify you the way it can with a bank, because the loan is secured mainly by the property.
What documents does a self-employed borrower need for a private mortgage?
A self-employed borrower may be asked for a Notice of Assessment with the T1 General and the Statement of Business Activities, known as the T2125. The standard reference point is 24 months operating the business or 24 months of experience in the same line of work, though shorter histories are sometimes considered.
Do I need a lawyer for a private mortgage?
Yes. Every private mortgage, whether a purchase or a refinance, closes through a real estate lawyer who handles the title search, the payout statement if one applies, and registration of the mortgage.
Will I be charged a fee to arrange a private mortgage?
Some private and alternative mortgages carry a lender fee or broker fee. Under Ontario’s Mortgage Brokerages, Lenders and Administrators Act, and under the rules Alberta’s RECA administers, any such fee must be disclosed to you in writing before you sign.
Is the document list different for a purchase compared with a refinance?
Mostly the same, with one swap. A purchase needs the purchase agreement, and a refinance needs the current mortgage statement and payout information, but the identification, tax, insurance, and exit plan requirements stay the same either way.
What if my property tax bill or insurance has lapsed?
Get a current copy before you submit your file. A lapsed or expired document is one of the most common reasons a private file stalls, and lenders will not fund against outdated paperwork.
Can you get a private mortgage with bad credit?
Yes. Alternative and private lenders remain available to borrowers below the credit score most prime lenders require, though pricing and fees are usually higher and any fee is disclosed to you in writing.
Does the chat button on this page connect to a real broker?
Yes. Chat connects you to a licensed member of the Pekoe team during business hours. Outside those hours, your question goes to a licensed broker who replies directly, not an AI persona.
Is Pekoe licensed to arrange private mortgages in Ontario and Alberta?
Yes. Pekoe Mortgages holds FSRA Brokerage Licence #13321 in Ontario and is licensed by RECA in Alberta, and arranges private mortgages in both provinces.
What is an exit plan and why does a private lender want it in writing?
An exit plan is a short written explanation of how you will repay or refinance the private mortgage at maturity, such as a sale, a return to prime financing, or completion of a renovation. Lenders want it in writing because it shapes the underwriting decision more directly than your income does.
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