Investors

In the right market, real estate can prove a valuable long-term investment. More and more Canadians with the means to do so are investing in private mortgages to secure their long-term financial future, and create a great new revenue stream for their self-directed RRSP. There are significant benefits to entering the private lending market, as private mortgages may be paid off faster than ordinary mortgages, and potentially with a high rate of return. 

Yet the private lending world can be legally complex, with strict rules and regulations designed largely to protect borrowers. The law requires lenders to meet strict requirements, including potentially obtaining a license, and lenders can face strict penalties, including fines or even imprisonment, for contravening the laws governing private mortgages. 

There are also specific rules that lawyers need to follow during purchase and sale of properties that involve a private mortgage, as parties on the other side of the transaction do not have the same level of guarantee that they would when dealing with a Schedule I bank, and so the lawyer on the transaction is required to do a significant amount of work behind the scenes in order to ensure that each transaction runs smoothly.

If you are considering entering the world of private lending, it is critical to have a confident, knowledgeable, and experienced lawyer guide you through the process. We have experience handling all stages of private mortgage transactions, and guide you at every step on how to best protect your interests as a lender.  

We do our due diligence, carefully reviewing every piece of the transaction to guard against any fraud or irregularities before you provide your funds. We also work quickly, giving your mortgage its full attention so that the transaction can close without any unnecessary delay. Lastly, in the event that your mortgagee does default, we can work with you to enforce amounts owing. Let the team at Sari Rose Law guide you through your transaction from start to finish.