Mortgage Investors
HMA 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.
1. Why would I invest in Canadian Mortgage when I hear so much about mortgage loses?
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.
2. How do I know that my money secured?
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.
3. What are the rates of return?
Second and Private mortgage always had high yielding rates of return,
you are looking anywhere from 7 to 15%. Interest rates depend on the
size of the deal and risk factors.
4. Will I be paying taxes if I use self-directed RRSP?
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money are withdrawn from RRSP account.
5. How do I know that I can get my money back in case of mortgage default?
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.
6. Why would I deal with Home Mortgage Advice?
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 real estate investments.
HMA financing for Real Estate investors
