Private Lending

Investing in Private Lending in Canada

Canada provides opportunities for individuals who desire to invest in private lending. The approach requires secured collaterals, known as a 'mortgage' in North America, which differentiates it from other approaches to investment. It presents a perfect opportunity for investors to establish relatively secure passive income. Commonly, mortgages are loans that get used in the purchases of homes or other properties. Most mortgages are large loans that take a long time to pay. However, the terms of lending often present the same property as the security or collateral. Hence, failure to repay mortgages in time results in foreclosure.

Available private lending investment opportunities encompass short-term micro-loans, medium-term and long-term loans. In terms of mortgages, borrowers have to make regular repayment deposits to the lenders. The calculations for these payments provide coverage of both the principal and the interests earned from it. In every deposit, lenders cover the interests first.

Private lending remains a regular practice in many countries except Asia and the Middle East. In Canada, the law allows interest-based private lending to others using the latter's property as security or collateral. With the performance of appraisals and due diligence by professionals, private loans based on property-as-collateral provide one of the most profitable and attractive investments for investors and their families to earn.

Investing in private lending based on property in the Province of Ontario (Canada) comes with one other significant advantage. The laws provide for the sale of property without involving the courts in the event of defaulted loans. Markedly, the law allows the statutory power of sale initiation if they are in the first lien position. This provision offers investors a quick way to recover their investments. Otherwise, such procedures would involve lengthy court proceedings with hurdles like declarations of bankruptcy or liquidation. In addition, for most of our clients, the profits earned from private lending benefit them by funding tuition fees for their children who study in Canada.