$550,000 Corporate Bridge Mortgage Closed in 7 Business DaysAn Off-Market Ancaster Purchase at 5.99% Interest Only
A real Ontario file, shared with identifying details changed. A borrower bought an $850,000 Ancaster home in the name of his holding corporation — a second home for his parents — before it ever hit the market. Only a 3-day financing condition, and 7 business days to close. Here is exactly how the money was structured, what it cost, and how it gets paid back.
The situation: an off-market Ancaster buy
The seller had put a “coming soon” sign on the lawn — no listing, no offer date, no competing bids yet. Our borrower moved before the property reached the open market and negotiated directly using a single realtor on the transaction, which reduced the commission the seller had to pay and the overall cost of buying.
The property is a residential home in Ancaster (Hamilton) intended as a second home for his parents. Title went into his holding corporation, which held other assets. His personal credit was strong — 750+ — and he had the down payment ready. The only real risk was speed: an off-market seller will not wait weeks for a bank.
The offer: $850,000 purchase price, conditional on financing for 3 business days only, closing 7 business days from the accepted offer. That short condition is exactly why the seller took the deal — and exactly why a bank could not fund it.
Why the bank was the wrong lender
- Corporate title. A holding company buying a residential property occupied by family does not fit most A-lender guidelines.
- Second-home use for parents. Not owner-occupied, not a straightforward rental — an underwriting grey zone at the banks.
- Timeline. Bank approvals plus appraisal plus solicitor instructions routinely run 3–5 weeks. The deal needed 7 business days.
- Renovation plan. The basement was unfinished and the second unit was not yet by-law compliant, which A-lenders discount rather than lend against.
How we structured the bridge
Location
Ancaster, ON (Hamilton)
Purchase price
$850,000
Mortgage amount
$550,000 (1st position)
Loan-to-value
~65%
Interest rate
5.99% — interest only
Monthly payment
~$2,745/month
Term
12 months, open after 6 months
Total fees
1.5% of the loan ($8,250)
Legal fees
$2,500 (less $300 TJG credit)
Appraisal
$450 + $100 rush + HST (less $300 TJG rebate)
Credit score
750+
Financing condition
3 business days
Time to close
7 business days from offer
Borrower type
Holding corporation with assets
A private first mortgage of $550,000 at 65% loan-to-value, interest only, on a 12-month term. The appraisal was ordered on day one with a rush fee so the 3-day condition could be waived on time, and the lawyer was instructed in parallel rather than after the condition cleared.
The real cost of the money
| Item | Amount |
|---|---|
| Interest (5.99% interest only) | ~$2,745 / month |
| Total fees (1.5% of $550,000) | $8,250 |
| Legal fees | $2,500 |
| Appraisal ($450 + $100 rush + HST) | ~$622 |
| Appraisal rebate from The Juneja Group | −$300 |
| Legal fee credit from The Juneja Group | −$300 |
| Net one-time closing cost | ~$10,772 |
Against a purchase negotiated below open-market pricing, roughly $10,800 of setup cost and interest-only carrying is the price of certainty and speed. Want to model your own file? Use the bridge and private mortgage calculators or the bridge financing quick analysis.
The value play: $850K in, $975K out
Buying quickly and off market got the property under what it would likely have fetched on a public listing. The renovation plan requires an estimated $50,000 to complete the basement and make the second unit conforming under municipal by-law requirements. With that work done, the after-renovation value is estimated at $975,000.
- Purchase price $850,000 + $50,000 improvements = $900,000 all-in.
- Estimated after-renovation value $975,000.
- A conforming second unit adds rental income and improves refinance debt-service math.
The exit: refinance to an A or B lender
The bridge is open for full repayment after 6 months of the term, so there is no penalty for exiting early once the work is complete. The plan is a refinance with an A or B lender at roughly $730,000 — about 75% of the $975,000 after-renovation value. That repays the $550,000 bridge and returns part of the down payment and renovation spend (not all of it), while the borrower holds the property long term.
Exit discipline is the whole game on a bridge. Rate matters less than whether the take-out lender will actually be there in month 9. Read how to plan a private mortgage exit before you sign anything.
What made this deal work
- • A short financing condition the lender could genuinely meet — pre-arranged, not hoped for.
- • A rush appraisal ordered the same day the offer was accepted.
- • Corporate title accepted by the lender with a personal guarantee, not fought over.
- • Interest-only payments so the renovation budget was not competing with principal repayment.
- • A written exit: a defined after-renovation value and a target refinance amount from day one.
FAQs
Can a holding corporation get a mortgage on a residential property in Ontario?
Yes. Most A-lenders are restrictive when title is held in a corporation — especially a holding company buying a second home for family use — but private and bridge lenders regularly lend to corporate borrowers with a personal guarantee from the principal. In this Ancaster deal the borrower purchased in the corporate name at $850,000 with a $550,000 first mortgage at 65% loan-to-value.
How fast can a private bridge mortgage close in Ontario?
This file closed in 7 business days from the accepted offer, with only a 3-business-day financing condition. That timeline is possible when the lender is private, the appraisal is rushed, and the lawyer is instructed on day one. Bank timelines of 3–5 weeks are what cost buyers off-market opportunities.
What does a 5.99% bridge mortgage actually cost per month?
On a $550,000 interest-only first mortgage at 5.99%, the payment is roughly $2,745 per month. There is no principal component, which keeps carrying costs predictable during a renovation. Lender and broker fees on this file totalled 1.5% of the loan amount ($8,250), plus $2,500 legal and roughly $620 for a rushed appraisal with HST.
Can you buy under market value by closing quickly?
Often, yes. In this case the seller had only put a coming-soon sign up. The borrower negotiated off market with a single realtor, which reduced the total commission the seller had to pay and made a fast, condition-light offer more attractive than waiting for a public listing.
What is the exit plan on a 12-month bridge mortgage?
Here the exit is a refinance with an A or B lender after the basement is completed and the second unit is brought into compliance with municipal by-law requirements. At an estimated after-renovation value of $975,000, a new $730,000 mortgage (about 75% LTV) repays the bridge and returns part of the down payment and renovation spend. The bridge is open for full repayment after month 6.
Related guides
Rates, LTV limits and how fast closings actually work.
The 11-question worksheet for costing both options.
How to get back to an A or B lender on schedule.
Financing property held in a corporation in Ontario.
Have a fast closing or an off-market opportunity?
We fund private first and second mortgages across Ontario, including corporate and holding company borrowers, with closings in as little as 5–7 business days. FSRA Brokerage #10874.
Educational information only — subject to approval
This website provides general educational information only and does not constitute financial, mortgage, legal, or tax advice. All rates, products, scenarios, and calculator results are illustrative and subject to lender approval, credit qualification, property valuation, and current market conditions. Mortgages are arranged by Saminder Juneja, Mortgage Broker — Mortgage Centre Canada / Get A Better Mortgage Inc. (FSRA #10874). Nothing on this site constitutes an offer to lend.