Private Lending Solutions for Clients in Financial Crisis
At Assadi Private Capital, we provide short-term, real estate-secured financing to individuals who are on the verge of filing for consumer proposal or bankruptcy. When conventional lenders decline, and “B” lenders cannot structure around high debt-to-income ratios, we step in to offer a final alternative, a bridge loan secured by equity in real estate.
These loans are designed to create strategic breathing room: to settle pressing debts, negotiate with creditors, or avoid immediate insolvency. We work exclusively through licensed mortgage brokers, Licensed Insolvency Trustees (LITs), and legal professionals who are guiding their clients through restructuring.
Why This Product Exists
Many Canadians have equity in their homes but are unable to access it through traditional means once their unsecured debt levels become unsustainable. They may be:
• Facing wage garnishment or collection lawsuits
• In arrears on taxes, credit cards, or unsecured lines of credit
• Unable to refinance due to recent missed payments or reduced income
• Looking to avoid bankruptcy by making a proposal or informal settlement
• Seeking to sell their home on their own timeline, not the creditors’
An equity loan, placed just before filing, can be the difference between a forced liquidation and a dignified, orderly solution.
Lending Parameters
• Loan size: $50,000 to $250,000
• Security: 1st or 2nd mortgage on real estate
• Loan term: 6–12 months, interest-only
• Loan-to-value: Up to 75%, depending on location and condition
• Appraisal: Required (as-is, current market value)
• Exit strategy: Sale, proposal completion, or refinance post-discharge
We are focused on the equity position and a reasonable path to repayment, not income ratios or recent credit history.
Who This Helps
• Homeowners overwhelmed by consumer debt
• Clients about to file with an LIT or financial advisor
• Individuals with strong home equity but no lender support
• Professionals handling last-resort solutions for their clients
• Families needing to resolve debt prior to a planned home sale or downsize
We are not a long-term solution. We offer bridge financing that gives clients control over how and when they address their financial reset.
Case Example
A homeowner in Alberta had $90,000 in unsecured debt, three months behind on payments, and collections underway. With $200,000 in home equity, she was referred to us just before filing a consumer proposal. We provided a $75,000 second mortgage. She used the funds to negotiate discounted settlements with creditors, avoid insolvency, and refinance with a “B” lender six months later.
Important Considerations
• We do not lend where the borrower has no equity or where the intention is to walk away from the property
• We do not lend to conceal assets from creditors, professional integrity is essential
• We require that a broker, lawyer, or LIT is actively involved in the file
Let’s Work Together
If your client is in financial crisis but still has real estate equity to work with, contact Assadi Private Capital. We will assess whether a private equity loan can offer the time and flexibility they need before formal insolvency is declared.
We lend responsibly and decisively, without the delays or inflexibility of institutional lending.