March 18, 2018

Benefits Of Being A Private Lender

What is a Private Lender?  Well, that is someone like you or I that invests our money into mortgages.  It could be a 1st mortgage or a 2nd mortgage but usually a 2nd mortgage.

Typically a client would be referred to me because they require a mortgage for a debt consolidation, equity take out for renovations, purchase an investment property, pay Revenue Canada taxes or divorce.

Here are some examples for obtaining a 2nd mortgage:

  1. The cost to break the 1st mortgage to refinance their property is cost prohibitive
  2. With the new lending guidelines implemented January 1, 2018, they cannot meet the debt servicing guidelines
  3. Poor credit
  4. Illness: I have financed mortgages where the client has been in arrears due of loss of income while going through chemo or other illnesses

Reasons to lend your money into a 2nd mortgage:

  1. Higher interest rate, return on your investment 8-12%
  2. I will do all the credit checks, verify employment and income to ensure you are secure in the knowledge that these clients can repay your mortgage
  3. We do an appraisal to verify there is realistic value and equity in the property
  4. You are putting your money into the real estate market instead of the stock market
  5. You can go see the property: you can see, feel and touch your investment

As in all relationships, it has to be a win win situation, it has to be good for both parties.  Typically interest rates would be in the 8-12% range depending on how much equity is in the property, reasons for late payments on the credit bureau, purpose of funds, etc.  I meet with every client and actually go to the property to get a feel for home’s value and condition.  I am very experienced lender and have personally been lending in private mortgages for 20 years and have a proven track record.

I am always looking for new private lenders.  If you are interested, please call me, we can meet and I will show you examples of a typical client file, what documents I would provide, interest rates and the procedures we would follow.  I look forward to hearing from you!

Colleen Saunders is a 25 year veteran in the mortgage industry serving Oakville, Burlington, Mississauga and Toronto and offering all mortgage related services such as 1st & 2nd mortgages, private mortgages and more.

To contact Colleen, please fill out the form on  or call 416-459-2406