How do I get back to a bank lender after a private mortgage?

In Ontario, you get back to a bank lender by fixing whatever sent you to a private lender. Then you show a lender four things: rebuilt credit, documented income, enough equity, and time. Many borrowers move in steps, from private to an alternative lender, then to a bank, credit union or monoline lender at a later renewal, always subject to lender approval.

Start with why you needed private money

Your way back to a bank depends on why you needed private money. Common causes, and what fixes each one:

• Credit problems: recent late payments, collections or a consumer proposal. The fix is time and a clean record.
• Income a bank could not verify: often self-employed borrowers without two years of returns showing enough income. The fix is filing returns that reflect your real income.
• Tax arrears or other debts: the fix is paying them off or having a formal arrangement in place.
• Timing: a purchase before a firm sale. The fix is completing the sale.

Many borrowers write the plan down at the start, with dates, because a private mortgage term goes quickly.

The four things a lender will look for

1. Credit. Paying every bill on time, keeping card balances well below their limits, and checking your credit report for errors all help. Banks and monoline lenders look closely at the most recent history, so every on-time month counts.

2. Income. Lenders need income they can verify. For employees, the proof is pay stubs and an employment letter. If you are self-employed, the proof is usually two years of tax returns and Notices of Assessment, with no tax owing. A Notice of Assessment is the CRA's summary of your processed return.

3. Equity. With a bank or other federally regulated lender, a refinance can go up to 80% of your home's appraised value (source: OSFI). Your total debt, including the private mortgage and any fees to exit it, has to fit under that line. Paying the private loan down, or not adding to it, protects your options.

4. Time. A lender wants to see that the problem behind the private mortgage is fixed for good. The proof may be a full term with a clean record, or the next tax return.

With a federally regulated lender, you also have to qualify under the stress test, at the greater of the contract rate plus 2 percentage points or 5.25% (source: OSFI, checked October 2026).

Moving from private to a bank in steps

Going straight from private to a bank is possible when the issue is fully resolved. Often, the realistic path is two steps:

1. Private to alternative lender: an alternative or B lender, often a trust company, accepts more flexible credit or income, usually at a cost above a bank but below private money.
2. Alternative lender to bank, credit union or monoline: at a later renewal, once your credit and income fully meet institutional rules.

Each step usually lowers your cost. Timing each move for the end of a term avoids paying a penalty to move.

How we help you move back to a bank

We start each review with the institutional options, then alternative lenders. You may be in a private mortgage arranged through Stonefield Capital, our private-lending brand, or elsewhere. Either way, we can work out what it will take to move your mortgage to a bank lender, and when.

What to do next

If you want a plan to move from a private mortgage to a bank lender, use our call-me-back form. You can also estimate your equity with the refinance equity tool.