The Blog - John Chan Mortgages

What Private Lending Can Do.

Here are a couple of recent extreme examples of what private lending can do. 1) Client has poor credit rating with debt gone to collection agency, repossessed car, over 10K in unpaid taxes and behind in both first and second mortgages. The mortgages were called by the bank and sent to the lawyers to start the foreclosure process. Private lenders were able to come to the rescue with a first and a second mortgage while lowering the monthly payments by almost $1000. 2) Applicant looking to purchase rental revenue property with zero down payment by using the equity in the primary residence. However, the applicant only has a disability pension income and weak credit. The applicant already owns another rental property. The condition of both

February 23, 2013 No Comments

What is Private Lending?

There was a time when private lending meant borrowing from wealthy individuals. For instance in a scenario where you buy a house, a wealthy individual would lend you the money and you pay him back in monthly payments. Now private lending is commonly used to refer to lending by mortgage investment corporations (MICs). The government decided to make investing in real estate and mortgages simpler for the average Canadian and to stimulate more private money into the Canadian mortgage market. Their solution was the MIC. MICs take money from investors and lend them out to people who need it. The profit from the mortgage loans are given back to the investors minus the operational and administrative cost of running the MIC. This means borrowers are

February 12, 2013 No Comments