Why Private Lending is a Game-Changer for Real Estate Investors

Josh Perez • March 27, 2025

"If you're only mortgaged through big banks and A lenders, you may not be accelerating your wealth-building plan as quickly as possible."

If you're a real estate investor who has only worked with big banks and A lenders, you may be limiting your potential for wealth building. While traditional financing works well for standard property purchases, some of the most lucrative real estate opportunities—such as distressed properties in need of significant renovations—require a different approach.

The Challenges of Traditional Lending

Investing in properties that need major improvements can be a powerful strategy to build wealth, but there are challenges that often deter investors:

  • High Capital Requirements – Many of these deals require a substantial upfront investment for both the down payment and renovation costs.
  • Strict Lending Criteria – Traditional lenders, including A and most B lenders, are hesitant to finance properties in poor condition.
  • Limited Flexibility – Many banks have rigid lending structures that don’t accommodate unconventional investment strategies like fix-and-flips or BRRRR (Buy, Rehab, Rent, Refinance, Repeat).

The Power of Private Lending

This is where private lenders, like Calvert Home Financing, come into play. Unlike big banks, private lenders specialize in funding real estate investments that require creative financing solutions. They understand the value of distressed properties and offer more flexible loan structures tailored to investors looking to maximize their returns.

Some key benefits of working with private lenders include:

  • Higher Loan-to-Value (LTV) Ratios – Private lenders can exceed 80% LTV for the right project, reducing the capital you need upfront.
  • Access to Construction Funds – Many private lenders will fund renovation costs, making it easier to complete value-adding improvements.
  • Fast and Flexible Approvals – Unlike traditional banks that take weeks to process applications, private lenders can approve and fund deals much quicker, allowing you to act on time-sensitive opportunities.

Learn How to Use Private Lending to Your Advantage

We’ve partnered with the experts at Calvert Home Financing to host a free webinar on Thursday, September 15th. This event will provide valuable insights into when and how borrowing privately makes sense for your investment strategy.

If you're looking to scale your real estate portfolio, optimize your financing strategy, and take advantage of opportunities that others pass up, this is a must-attend event.

Josh Perez
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Deposit vs. Down Payment: Key Differences for Homebuyers

By Josh Perez • February 18, 2026
When you’re buying a home, two terms often cause confusion: deposit and down payment . While they’re related, they serve very different purposes in the homebuying process. Here’s what you need to know. What Is a Deposit? A deposit is the money you provide when you make an offer on a property. Think of it as a show of good faith that proves you’re serious about purchasing. How it works : Typically, you provide a certified cheque or bank draft that your real estate brokerage holds in trust. If your offer is accepted, the deposit remains in trust until the deal moves forward. If negotiations fall through, the deposit is refunded. Connection to your down payment : Once the sale is finalized, your deposit becomes part of your total down payment. Why it matters : The amount is negotiable, but a larger deposit can make your offer more attractive in a competitive market. Keep in mind, however, that if you back out after conditions are removed, you risk losing your deposit. What Is a Down Payment? Your down payment is the amount you contribute toward the purchase price of your home when securing a mortgage. Minimum requirement : In Canada, the minimum down payment is 5% of the home’s purchase price. Anything less than 20% requires mortgage default insurance. Sources : Down payments can come from your savings, the sale of another property, RRSP withdrawals (through the Home Buyers’ Plan), a gift from family, or even borrowed funds. Example: How They Work Together Imagine you’re buying a $400,000 home with a 10% down payment ($40,000). When you make your offer, you provide a $10,000 deposit . Once conditions are met, that deposit is transferred to your lawyer’s trust account. At closing, you add the remaining $30,000 to complete your full down payment. The lender provides the rest—$360,000—through your mortgage. The Bottom Line Your deposit shows commitment and secures your offer, while your down payment is what makes the mortgage possible. Together, they work hand in hand to get you into your new home. 📞 If you’d like clarity on deposits, down payments, or any other part of the mortgage process, let’s connect. I’d be happy to walk you through it step by step.
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Is a 5% Down Payment a Mistake? Here’s the Unpopular Truth.

By Josh Perez • February 15, 2026
Discover why a 5% down payment isn’t always irresponsible. Learn when a low down payment is a smart financial move for Ontario homebuyers and when it’s a risk.