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CTV Morning Live: Mortgage Minute- January 22, 2019

CTV Morning Live: Mortgage Minute- January 22, 2019

Date Posted: January 23, 2019

With the stress test introduced last year it has become increasingly difficult for some individuals to be approved under the new guidelines. Some scenarios where exploring a private mortgage may be a marital breakdown, credit issues, or a newly self-employed individual that does not meet the bank criteria.

Private mortgages are not for individuals with 5% or 10% down and usually start at 15% down payment requirements. These are meant to be short term solutions, especially since the rates are pointedly higher than that of a traditional mortgage. Having an exit strategy is extremely important as the idea is to get into the market, or access the equity needed, and then move back into the traditional financing market.

From an investor standpoint, Advanced Capital Corporation is an exempt market dealer that is an agent for Advanced Mortgage Investment Corporation (AMIC), which is a private lender in Ottawa that lends private funds on Ottawa real estate. Advanced Capital Corporation sell preferred shares to raise the capital to lend through AMIC.

Advanced Capital Corporation is hosting an information session on February 5th, 2019, please visit their website for more information by clicking here.   

For more information on private mortgages, contact your Mortgage Broker for information and sound advice.