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A mortgage is probably the largest debt you would have committed to. On the other hand if you invest as a lender you can make good rates of return. We can connect you with the proper parties to satisfy your needs.To find out more on getting a mortgage or to invest as a lender contact us and we will put you in contact with the right person.
Mortgage Agents and Brokers can be of valuable assistance to mortgage-seekers whose financial circumstances are not as straightforward as lenders may prefer. Where individuals might be self-employed or their credit might be flawed, brokers have access to private funds and specialized institutions that could meet the needs of that particular client.
Mortgage agents and brokers are required to take courses, pass exams and undergo training and apprenticeships before they receive their licences.
Just because they’re licensed, though, does not mean all agents and brokers are equal.
Becoming a Mortgage Lender
Essentially there are 3 ways that an investor interested in mortgages as an investment vehicle can invest:
1. Invest on a one on one basis. The mortgage is written in the name of the investor and all interest payments go directly to the investor usually on a monthly basis.
2. Invest in a participatory mortgage. This is where a number of investors pool their money together to invest in one specific mortgage. Each investor gets a stake proportional to their investment in the mortgage. This is sometimes referred to as a syndicated mortgage.
3. Invest through a mortgage investment corporation, commonly referred to as a MIC. This is where a number of investors can pool their money together in a fund which is managed on their behalf and is RRSP eligible. Each mortgage is written in the name of the corporation and the interest earned gets paid back to the investors through a dividend at the end of the each year, or monthly or quarterly. The major benefit of this style of investing is that the risk of each mortgage is spread out among the investor over the entire portfolio. This is essentially a mutual fund for mortgages.
The Canadian Income Tax Act (Section 130.1) outlines rules that all MICs must follow.
If you are interested in mortgages as an investment and would like to explore whether they are a right fit for your investment portfolio feel free to give us a call or send an email for more information. As mortgage brokers we often have opportunities for investors in any of the categories discussed above.
*This is not an offer for securities and is provided as general information only.