Case Study: Private Home Equity Mortgage for Dental Business Cash Injection

December 20, 2017

Private mortgage financing is not always economical however that doesn’t mean it isn’t useful to help you move forward to achieve financial success or independence. When applied correctly a private home equity loan can unlock tremendous potential.

Here’s an example of how I helped a family-run Ottawa dental office grow their business with a private 2nd mortgage.


Jane & John called me from Ottawa looking for a $45,000 2nd mortgage to finance a capital investment into their growing dental business.   They had been operating for 18 months and were just getting off the ground but had some growing pains. They needed to improve their office esthetics and buy a few dental chairs to generate more income.
They owned 2 properties:

  • the mixed use property the business is operating out of and
  • their principal residence in Orleans Ontario

Since they were relatively new in-business they didn’t have the personal income the bank looks for to approve a loan or mortgage request. It was a chicken or the egg situation; they needed to invest into their business to get more income but couldn’t get the money from the bank until they could show the income.


Principal residency in Orleans Ontario

Appraised $365,000
Existing 1st mortgage: $261,000
Loan to value = 71.5%

Mixed use commercial space where business is operating

Appraised $480,000
Existing 1st mortgage $286,0
Loan to value = 59%

Combined loan to value across both properties ~65% loan to value.


Jane & John offered both properties as security for the private 2nd home equity mortgage giving the lender a good amount of home equity to secure the loan. This helped us negotiate a good rate and fee for them. Furthermore Jane & John offered to amortize the mortgage over 3 years which gave all parties a very defined and clear exit strategy.
Here’s how the final private home equity mortgage was priced:

  • $45,000 2nd mortgage collateralized on both properties
  • 99% interest rate
  • $1,295/mth payment amortized over 3 years
  • Fully open
  • $1,600 total fees



We were able to close the transaction within 10 business days of the initial inquiry. Jane & John purchased their dental chairs and made the desired improvements to their Ottawa Dental practice. The cost of funds was justified to improve their business to create more capacity and income.
With a short amortization of 3 years they are paying down the debt quickly however they always have the option of rolling it into one of their mortgages as their future income goes up.
Through case studies on this site I use a real life example to show how I use private home equity mortgage financing help Canadians in need. The names and exact circumstances have been altered to protect my client’s identity but the results, solutions and success is real.



Christopher Molder

Mortgage Broker

Christopher is a mortgage broker based in Toronto, Canada. And a son of a broker too. He’s a second generation mortgage broker. Following in his father’s steps he joined the family mortgage business straight out of university.