Investing in Private Mortgages

May 26, 2011

Investing in mortgages is a great opportunity that is overlooked by many investors.  There are many methods and ways to invest in mortgages.  The following is the skinny on investing in mortgages:

Why Should Someone Consider Investing In A Private Mortgage?

A mortgage is a unique investment that provides the investor with a predetermined return (interest rate), paid out on a monthly basis. Best of all, the investment is secured and backed by real estate.

Why Aren’t Mortgages Readily Available For Investors In Canada?

Most investors seek guidance and advise through financial planners who aren’t licensed to sell mortgage investments.

Where Can Investors Find Mortgages To Invest In?

The best place to find mortgages as investments is through a licensed mortgage broker. Often a mortgage broker will be able to match a borrow with an investor/lender who meets the investor’s risk tolerance.

What Type Of Return Can An Investor Expect To Receive For Their Mortgage Investment?

As with all investments, the returns are relative to the risk associated with the mortgage. An investor can expect a return anywhere between 5-12% depending on the position of the mortgage (1st or 2nd mortgage) and the credit worthiness of the borrower.
If you would like to explore whether mortgage investments are right for you, contact Arnold at 416.461.0204ext1 or email .


Christopher Molder

Mortgage Broker

Christopher is a mortgage broker based in Toronto, Canada. And a son of a broker too. He’s a second generation mortgage broker. Following in his father’s steps he joined the family mortgage business straight out of university.