Date Posted: November 21, 2017
Annette Goerner is joined by Frank Napolitano of Mortgage Brokers Ottawa and Michael Hapke of Advanced Mortgage Investment Corporation discussing the option of private mortgages for individual mortgage needs and for investors.
Given the more stringent lending criteria, some individuals may need to seek alternative financing options. Self employed, recently separated, or credit issue customers may not have the ability to qualify for traditional financing. Michael discusses the benefits of using or participating in a Mortgage Investment Corporation. The rates offered to borrowers can range anywhere between 4% and 8% so as an investor these funds are generating reasonable returns. As an investor, you are able to use registered funds such as RRSPs or RESPs given that this investment vehicle looks for longer term time horizons from investors. There is a suitability process that Mortgage Investment Corporations abide by as well to ensure that factors such as risk tolerance and goals are aligned.