Mortgage Renewal Options in 2025

Posted on November 12, 2024November 12, 2024 by Andy MacDonald

In Canada, approximately $352 billion in mortgages are projected to mature in 2025. Many of these will renew at significantly higher rates, which may cause a substantial increase in monthly payments for Canadian homeowners. If you’re among those renewing, now is the time to take action to minimize payment increases, balance your budget, and find a solution that fits your needs. Here’s how to get started: Start Planning Early Contact your lender 6–12 months before your mortgage term end...

What is a private mortgage?

Posted on November 4, 2024November 4, 2024 by Andy MacDonald

A private mortgage refers to a loan, secured by real property, provided by an individual or a private entity, rather than a traditional financial institution like a bank or credit union. Here are some key features: Lending Source The lender can be a private individual, a group of investors, or a private lending company like a MIC (Mortgage Investment Corporation). Terms and Conditions Private mortgages often have more flexible terms compared to traditional mortgages. They can v...

What is a MIC?

Posted on November 3, 2024November 4, 2024 by Andy MacDonald

A Mortgage Investment Corporation (MIC) is an investment vehicle that pools funds from investors to provide mortgage loans, primarily focusing on real estate borrowers who may have difficulty obtaining financing from traditional banks. MICs are regulated under the Income Tax Act and must distribute a substantial portion of their income to maintain tax-exempt status. Benefits of Borrowing from a MIC: Accessibility MICs often cater to borrowers who may not meet the stringent criteria of ...

Why is an exit strategy important?

Posted on November 2, 2024November 4, 2024 by Andy MacDonald

An exit strategy is crucial when considering a private mortgage in Ontario for several reasons: Financial Security An exit strategy helps you understand how you will repay the mortgage, whether through refinancing, selling the property, or another means. This foresight can prevent financial distress. Market Conditions Real estate markets can fluctuate. Having a clear plan allows you to adapt to changes, such as rising interest rates or declining property values. Avoiding D...

Is a private mortgage suitable?

Posted on November 1, 2024November 4, 2024 by Andy MacDonald

Whether a private mortgage is a suitable solution to your needs depends on your specific circumstances. Here are some factors to consider: Credit Situation If you have poor credit or a limited credit history, private mortgages can be more accessible than traditional bank loans, as private lenders may be more flexible. Urgency If you need financing quickly, private lenders often have faster approval processes compared to banks or credit unions. Property Type If you're purchasin...

What fees can I expect?

Posted on October 30, 2024November 4, 2024 by Andy MacDonald

When arranging a private mortgage on a residential property in Ontario, you can expect several types of fees. Here are some common ones: Lender Fees These can include application fees, underwriting fees, and any fees specific to the lender. Fees generally range from 1-3% of the mortgage amount, depending on the complexity and risk involved in the transaction. For lower risk mortgages there may be no lender fees. Legal Fees In a private mortgage transaction, there will be ...