1-800-609-9830 · Rick Bettencourt, Mortgage Broker · Lic# M11002425

How To Invest In Private ​Mortgages

We offer mortgage investment opportunities that provide above average returns for investors. Investors invest directly in a specific mortgage secured by real estate.

The most secure and durable investments are in real estate property. Though real estate prices fluctuate from time to time, over the long-term, real estate property appreciates in value. The security for a mortgage is the real estate property itself, making mortgages a good place to invest.

Investing in private mortgages provides a regular income stream, tangible security and a real return to the investor that is superior to bank deposits, GICs and bonds. They are an eligible RRSP investment that is tax sheltered, and you can invest the interest over and over!

Ways to Invest

Invest on a one on one basis.

The mortgage is written in the your name, the investor and all interest payments go directly to you the investor usually on a monthly basis. The caveat with this type of mortgage is that all the risk is on the investor and hinges on the quality of the real estate and the borrower’s ability to make good on the mortgages.

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 common if the individual investor doesn’t have enough funds available to fund a loan.

Advantages Of Private Mortgages

Here are some advantages of investing in private mortgages:

No Cost to You – The borrower is required to pay the costs to have the mortgage registered against title to their property. The investor simply sits back and goes about cashing the monthly payment without incurring any further cost.

Monthly Income – A mortgage will generate cash each and every month. The amount of the monthly payment will depend on the size of the mortgage and the interest rate. Most monthly payments are interest only payments.

Protected Capital – There is low risk associated with mortgage investments; they are secured by the real estate property if the borrower is unable to make payments.

An RRSP mortgage gives a minimum of 10% to 15% yield rate of return that is secured by a first or second mortgage on a property in Canada. At a rate of 10%, your RRSP portfolio should double in value every 7 years.

Private mortgages can be a great investment, as there is security with the equity on real property and the property can be used to help pay off the mortgage if the borrower reneges. The lender is fully covered by the legal documents signed at the time of the mortgage, ensuring that the investment, as well as a profit, is collected.

Getting Started

Being knowledgeable is the first step towards making wise investment decisions. Whether your goal is a comfortable retirement, a good post secondary education for your children, a new home, your own business – or even a holiday – the sooner you begin planning, the better your chances of success.

The second step is to commit to earning higher returns on your investments. It doesn’t matter the size of your investment, you can start now to grow your investments to meet your goals.

The third and final step is to complete the form to the right and let us help you meet your investment goals of higher returns.