Welcome to the World of Private Mortgages

Over the course of the last decade or so, the percentage of private mortgages within my portfolio grew from some 5% to an astonishing 30%…

There are several reasons for this increase: a changing lending landscape, the tightening of government rules, an increased number of informed borrowers and many more. 

Over time, banks have become increasingly risk-averse, mainly because of the mortgage crisis south of the border, which saw many of their generous programs and products disappear or tighten. 

The new government regulations, aimed at slowing down the real estate frenzy in Canada, did not help. We have seen the 40 year amortization on insured mortgages decreased to 25; we’ve seen stated income programs on rental properties almost fully disappear; we’ve seen refinancing limits capped at 80% of the properties’ value; and the list goes on.

All this created the demand for private mortgages, be that because of simple necessity or because it just makes sense.

A Private Mortgage is Sometimes the Right Solution

One of the biggest reasons private mortgages have became so popular lately has to do with the fact that tin some cases they make complete sense. True, they are more expensive than funds you will get at your local bank, but you have to look at the whole picture. 

If you need funds for a short period of time, your net cost of borrowing will be worth the ease of access to private money, where it makes sense. This is especially true in construction financing. 

If you need funds to bridge your first mortgage with your down payment in order to avoid expensive insurance premiums, private money comes in very handy. Or if you are a self employed individual who needs to access the equity in their house and shows limited income on their tax returns, private money makes complete sense.

Remember, private mortgages are not a long-term solution, but they provide a viable alternative when the standard avenues are not available.

I can help with Private Mortgages

As my business has grown over the years – I can now assist you with all your Private Mortgage needs. This means that I have access to different financing options and always put clients needs first.

Do you want in invest in Private Mortgages?

If you have funds you are looking to invest – please let me know and I can walk you throught the process of investing in private mortgages.