Investing in Ontario Mortgages
Would you like to earn higher rates of return than the 1% that the banks are presently paying? Investing in mortgages can provide a annual rate of return from 6% and up to 10% depending on the level of risk you are willing to accept. To find out more about investing mortgage please call 416-499-2122.
As a mortgage investor you will have your name and the amount you invested directly registered on each property title. All mortgage investments are completed by a lawyer and registered with the government and have title insurance. Our mortgage agents will provide all of the information regarding the mortgage such as an appraisal, application, income statements and credit checks for the property owners. The amount of money required for a loan can range from $20,000.00 up to $1,000,000.00. The average mortgage loan is around $250,000.00 for a first mortgage and around $50,000.00 for a second mortgage.
Monthly Cash Flow
Most people investing in mortgages are looking for mortgages that pay a monthly income. The security provided by the property results in a lower level of risk when compared to other unsecured loans. The homeowner has tremendous incentive to ensure that the private investor gets paid every month. This results in a very stable monthly cash flow to the individual investor. Our mortgage brokers will gather all the pertinent information related to the property such as a title search, any outstanding liens, credit score of the owners, property insurance and an independent appraisal of the property. Based on this information our mortgage brokers determine the credit worthiness of each mortgage. All this information is then presented to a private mortgage investor who can then determine if a particular loan has the correct risk reward ratio for their investment.
First or Second Mortgages
Private mortgage investing allows you to choose where you put your money; first or second mortgages. First mortgages are less risky and will provide a good rate of return on your investment. Investing in first mortgages is an excellent strategy for people who want a relatively safe investment with a steady monthly income. People who want to invest in second mortgages must be willing to take on a higher level of risk but will also get a higher rate of interest. As a general guide a first mortgage will not exceed a total loan to value (LTV) ratio of 75%, most second mortgages have a LTV ratio of between 75 to 85%.