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...

Testimonial: DML

Posted on January 10, 2023January 10, 2023 by admin

We have been dealing with Andy for several years now and he is great to work with. Andy is a true professional who always has our best interests in mind. He handles our transactions promptly and efficiently and is always thorough. Thank you Andy, we appreciate what you do for us and look forward to working with you again soon! DML (Private Mortgage Investor) Mississauga, Ontario