Private mortgages are not only a financing tool for borrowers — they are also an investment opportunity. Here is how investing in private mortgages works in Ontario.
Why private mortgages as an investment?
Private mortgage investments can offer attractive, regular interest income that is secured by real estate, which makes them a popular way to diversify beyond stocks and bonds.
Target returns
First mortgage positions target approximately 7–8% annual interest, while second mortgage positions target approximately 9–11%. These are targets based on typical opportunities, not guarantees.
How your investment is secured
Your position is secured by a registered mortgage charge against the underlying property. First mortgages hold first claim, while second mortgages rank behind the first.
Standalone or syndicate
You can invest on your own and keep the entire return, or pool capital with other investors in a syndicate to participate in larger deals and spread your exposure.
Understand the risks
All investments carry risk and returns are not guaranteed. Property values can change and borrowers can default, so it is important to review each opportunity and seek independent advice.
Ready to talk?
Interested in earning real-estate-secured returns? Learn more on our Invest With Us page or contact us to discuss current opportunities.
This article is for general information only and is not financial, legal, or investment advice. Please consult a qualified, licensed professional before making any decision.
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