Suitability Is About Judgement

Posted on May 14, 2026May 14, 2026 by Andy MacDonald

In a recent post / article I talked about the failure of many mortgage brokers and agents to comply with Section 24 and 25 of Ontario Regulation 188/08. These sections deal with disclosure and suitability. At a basic level, disclosure is about information, while suitability is about judgement. The incompetent mortgage brokers and mortgage agents of the world often fail at both levels, but I find that even the fully competent ones get trapped in the mindset that they need to get the ...

Suitability & Disclosure… the low hanging fruit!

Posted on April 29, 2026April 29, 2026 by Andy MacDonald

Until recently, the mortgage brokerage sector has largely been ignored by regulators and litigators. Everyone was making money in mortgages and even poor advice was profitable. No one complains when times are good but now that the market has turned, we are seeing just how bad the advice was that many borrowers and investors received from their mortgage broker or agent. As Warren Buffet famously surmised, “Only when the tide goes out do you discover who’s been swimming naked”. Let’s just s...

The Promise of a Promissory Note

Posted on March 26, 2025May 27, 2025 by Andy MacDonald

Yesterday, I had the pleasure of meeting with a new investor to explore whether private mortgage investing would be a good fit for them. As we discussed different investment options, they casually mentioned being approached by an acquaintance to invest in promissory notes with a so-called real estate guru. I wish I had a video of my reaction! My eyes probably bugged out of my head, and if I had been sipping coffee, I’m sure it would have gone flying. Instead, I immediately blurted out my opi...

Suitability: A Legal Perspective

Posted on March 25, 2025May 27, 2025 by Andy MacDonald

Mortgage brokers play a crucial role in Ontario’s private lending market, acting as intermediaries between borrowers and private mortgage investors. While their primary function is to facilitate lending transactions, they also bear a significant responsibility to ensure that any mortgage investment they recommend is suitable for the investor’s risk tolerance, experience level, and financial objectives. Failure to do so can lead to legal liability, financial losses, and professional misconduct a...

Top 5 Private Mortgage Investor Tips

Posted on March 21, 2025May 27, 2025 by Andy MacDonald

1. Understand The Story Every borrower has a story to tell if they are looking for a private mortgage. If they didn’t have a story they would be dealing with a bank. You need to listen to their story and determine if it makes sense. Does it pass the smell test? What problem are they trying to solve and will your mortgage solve their problem or just prolong their misery? 2. Know The Exit Strategy How is this mortgage going to be repaid? Are they relying on hopium or is there a clear pla...