The Canadian mortgage market is a safe place to make short term investments, and you can get a high rate of return on every dollar you invest. If you are interested in becoming a new mortgage investor or are looking for additional opportunities as an existing mortgage investor, we can help find the right opportunity for your comfort zone and desired rate of return. Infact investing in private mortgages tend to yield higher returns than mutual funds and can be a much more safer investment alternative to other high-interest paying investments due to the security of the real estate behind it.
The recent decline in real estate prices has generated a spike in mortgage investments. Investing in mortgages can be a great way to produce additional monthly income and grow your financial portfolio. To help you better understand mortgage investments, the experts at Clover mortgage are fully transparent and we’re here show you the different options that are available and inform you of potential benefits and any potential risks.
The stringent rules of the stress test have made it harder for some borrowers to qualify for a mortgage with traditional lenders. Fortunately there are a number of alternative lenders who are willing to help those having trouble obtaining a more traditional bank mortgage. When lending money to a borrower, investors use the equity that is available in the property as collateral to ensure borrowers continue to make their payments on time. Private lenders are intended to help borrowers that have been turned away by stricter more traditional lenders. These investments yield a higher interest rate because the borrowers often have low income or bad credit, thus making the loan higher risk than a traditional mortgage loan. This risk is offset by higher interest rates, shorter term loans of 6 months to 1 year, and lower loan to values.
Private mortgage rates have interest rates starting as low as 5.99% for a private 1st mortgage and can go as high as 15% or more depending the borrower’s specific situation. The higher rates make private mortgage investing much more appealing to invest into than mutual funds. Similarly, the security of using a borrower’s home as collateral makes private mortgage investments safer than most other high-risk options. The possibility of a high return with a relatively low risk have made such private investments increasingly more popular across the country.
Due to low real estate prices and strict stress test rules, the number of Canadians interested in obtaining private mortgages has increased providing a growth in the availability of investment opportunities for private mortgage investors.
At Clover Mortgage, we help investors make wise investment decisions that are secured by marketable properties in Ontario. We will match a property and private mortgage deal to the specific investor profile and predetermined needs of each individual investor. We take care of appraisals and site inspections, so that you can focus on your other priorities in life.
You will earn a stable passive income on a regular basis and can choose to invest your money for as little as 6 months to as long as 5 years. We accept investments starting at $30,000 up to over $10,000,000.