Question 1

Can I use hard money to buy a rental, then refinance into DSCR?

Accepted Answer

Yes. That's a common strategy. Buy and rehab with hard money, then refi into a DSCR loan once the property is stabilized and rented.

Question 2

Which loan closes faster in Ontario?

Accepted Answer

Hard money closes in days. DSCR takes 2 to 4 weeks. If speed wins the deal, hard money is the move.

Question 3

Do I need good credit for either loan?

Accepted Answer

DSCR lenders typically want 620 or higher. Hard money lenders are more flexible — credit matters less than the property's value.

Question 4

What is a DSCR ratio and why does it matter?

Accepted Answer

DSCR means Debt Service Coverage Ratio — rent divided by mortgage payment. Most lenders want 1.0 or higher. Below 1.0 means the rent doesn't cover the payment.

Question 5

Can I use hard money on a rental property in Ontario?

Accepted Answer

You can, but the high rate will kill your cash flow fast. Hard money is a short-term bridge, not a permanent rental financing solution.

Question 6

Does SRK CAPITAL offer both loan types?

Accepted Answer

Yes. SRK CAPITAL works with 200+ wholesale lenders. We place both DSCR and hard money loans depending on your deal and exit strategy.

DSCR Loans vs Hard Money: Which Fits Your Ontario Investment?