Private Mortgage Investors

Reasons To Become A Mortgage Investor

Home&Mortgage Advice team offers Mortgage Investors opportunity to diversify. Real estate investments in Canada have been proven to be safest among high yielding investments. We utilize calculated risk model where our investors are not exposed to undue risk. Each deal is approached individually and discussed to outline pro’s and con’s.
There are various ways to become a mortgage investor. We compiled the list of most common questions and answers. This should explain the reason why mortgage investments are a good way to multiply your savings.

Q. Why would I invest in Canadian Mortgage when I hear so much about mortgage loses?


A. Despite the economic crisis Canadian mortgage market remains strong and many Canadian’s who chose to be private lenders are doing extremely well. According to the Canadian Bankers Association, the average arrears in Canada have averaged 0.42% for the past 18 years. Also, most of mortgages in Ontario end up in the power of sale, in case if sales amount is insufficient to cover mortgage loses, lender is eligible to place a judgments against them.

 Q. How do I know that my money secured?

A.Having high interest rate of return reflects some degree of risk involved. Nevertheless, a proper approach to underwriting reduces the risk significantly. Every deal is done through a licensed lawyer. Investors may use their own lawyers if they feel more comfortable. We are using large bank services to administer each mortgage and fund distribution. This way everything gets done properly. Strict underwriting policies and deal negotiation insure that home equity won’t diminish over night and every mortgage payment is made on time.

Q. What are the rates of return? 

A. Second and Private mortgage always had high yielding rates of return, you are looking anywhere from 7% to 12%. Interest rates depend on the size of the deal and risk factors. Higher risk deals result in higher rates of return and vice verse. We always recommend balanced approach and not to get carried away by high interest rates that the client is willing to pay. Being able to collect your money is more important then getting higher rates of return.

 Q. Will I be paying taxes if I use self-directed RRSP? 

A.You can use your savings or follow other Canadians using RRSP funds to invest into private mortgages. Just like any RRSP investment, taxes are payable once money are withdrawn from RRSP account.

Q. How do I know that I can get my money back in case of mortgage default?

A.It usually takes longer to get your money out in case of default because you have to follow the Power of Sale action rules and be able to sell the house on the market. The sooner you act, the more chances that you will not lose. The main goal is not to allow this to happen in the first place.

Q. Why would I deal with Home Mortgage Advice?

A.We have experience in real estate investing, mortgage underwriting and risk management. Home Mortgage Advice team uses the most conservative approach in property underwriting. Our main goal is security and stability of your investments.
Please, contact us for more information on private mortgage investments.