With the tightening of mortgage rules by the federal government over the past few years, qualifying for a prime institutional mortgage has become more difficult. This has increased the demand for alternative money sources.

Refinances are now restricted to a maximum 80 per cent loan to value and as a result high ratio lending in this category has been completely eliminated.

People continue to have needs including paying off high interest debt to reduce the ‘interest’ burden. Private first and second mortgage money is still available at ‘attractive’ rates, and represents a short term solution for borrowers.

The return to private lenders is considerably higher than returns from bank debt instruments and the stock market, and hence we have seen a surge of private money available last year, but the need continues to exceed demand. First mortgage rates (return) ranges from 7% to 10% and seconds from 12% to 15%, significantly higher than bank deposit rates hovering around 2%. RRSP’s can also be used to fund second mortgages.

Private lending in real estate is typically more secure and stable than most other non-real estate related (stock market) investments, and provides an excellent return over the longer term. We conduct a thorough due diligence, and structure the deals to mitigate risk for our lenders.

If you own a house, have a mortgage and/or carry consumer debt please call The Price Team today to make an appointment to learn how you can pay off your debts in a fraction of the time, without refinancing, yes that’s right, and become debt free faster than you ever imagined before through our amazing  SMARTEQUITY program. To see is to believe.