Private Financing to Improve Credit and Unlock Better Borrowing Options
At Assadi Private Capital, we offer short-term, real estate-secured loans designed to help clients improve their credit profiles and ultimately transition to lower-cost, traditional financing. These Credit Recovery Mortgage Loans are ideal for borrowers who own property and have equity but are currently shut out of the prime lending market due to poor credit or high consumer debt levels.
Our product provides the capital needed to pay down or consolidate the liabilities that are damaging your client’s credit report, without adding new reporting to the credit bureau. The result: a cleaner credit file over time, a more attractive borrower profile, and increased access to mainstream lenders.
How It Works
A Credit Recovery Mortgage is a short-term private loan secured by real estate. The funds are used to pay off high-interest credit cards, overdue lines of credit, collection accounts, or other unsecured debts that negatively affect credit scores. The private mortgage is not reported to Equifax or TransUnion, so it does not further depress the borrower’s profile.
Over a period of 6–18 months, as old accounts are paid off and derogatory items age or are removed, the borrower’s credit file improves. Once eligible, they may refinance with an “A” or “B” lender, repaying us in full and benefiting from lower interest rates going forward.
Why It’s Effective
• Strategic Use of Real Estate Equity: Many Canadians have equity in their homes but are blocked from using it through traditional refinancing due to credit scores.
• Avoids Further Credit Bureau Damage: Our loans are not reported to consumer bureaus, preserving recovery momentum.
• Short-Term Flexibility: Designed as a temporary solution, with terms of 6 to 18 months.
• Clear Exit Path: The objective is not long-term reliance on private credit, but rather a transition to more affordable financing once eligibility improves.
Who This Helps
This product is especially useful for:
• Homeowners with equity but subprime credit scores
• Clients recently discharged from consumer proposals or bankruptcies
• Self-employed individuals denied by banks due to credit or income irregularities
• Borrowers with maxed-out credit lines, collection accounts, or recent delinquencies
• Individuals needing to “clean up” their bureau to qualify for institutional refinancing
We work exclusively with licensed mortgage brokers and regulated financial professionals to ensure each client receives tailored, professional guidance.
Loan Parameters
• Amount: $50,000 – $250,000
• Security: 1st or 2nd position mortgage
• Use of Funds: Must be allocated toward debt repayment or strategic credit improvement
• Term: 6 to 18 months (interest-only)
• LTV: Up to 75%, depending on property and region
• Exit Plan: Required, usually bank or trust company refinance once credit recovers
Not a Fit For
• Borrowers with no real estate equity
• Files where the loan would be used for new spending or speculation
• Situations with no clear exit plan or no willingness to repair credit
Case Example
A homeowner in Ontario had $120,000 in unsecured debt, including five maxed-out credit cards and two collection files. Her bank denied refinancing due to a credit score below 580. We provided an $85,000 second mortgage, which she used to pay off all unsecured debts and close inactive accounts. Twelve months later, her score was over 670, and she refinanced with a B-lender, eliminating private lending costs entirely.
Let’s Work Together
If your client has real estate equity but poor credit, and needs time and capital to rehabilitate their borrowing profile, consider a Credit Recovery Mortgage from Assadi Private Capital. We provide the structure and speed required to facilitate short-term recovery, and we respect your relationship with your client every step of the way.