WHAT IS A PRIVATE MORTGAGE?

A private mortgage in Canada is a loan provided by a private individual or a group of private investors, rather than a traditional financial institution like a bank or credit union.

These loans can finance residential, commercial, or industrial properties and are typically short- to medium-term, ranging from a few months to several years. Private mortgages are often used when borrowers need flexible terms, faster funding, or access to capital outside conventional banking channels.

They allow investors to participate in real estate-backed lending, offering the potential for attractive, risk-adjusted returns secured by tangible property assets.

Why Invest in Private Mortgages?

HIGH RETURNS

Private mortgages typically provide investors with higher returns compared to traditional banking products or public market securities, such as stocks, bonds, or GICs.

PASSIVE INCOME

Private lending home loans provide investors with steady passive income through regular interest payments made by the borrower over the term of the loan.

SECURITY

Private mortgages are backed by real estate, offering investors the security of collateral and the option to take possession of the property if the borrower defaults.

DIVERSIFICATION

Investing in private lending home loans diversifies your portfolio by introducing an alternative asset class that is less correlated with traditional investments.