Investing in Private Mortgages
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Securing Stable Returns with Real Estate-Backed Investments
Strategic asset diversification has never been more critical in an economic landscape of rising interest rates, heightened inflation, and looming recessionary pressures. As non-correlated assets, private mortgages stand out as a resilient choice in such climates, offer flexibility and opportunity, and stand out as a resilient investment choice to hedge against inflation and market volatility.
These assets often remain unaffected by broader market dynamics, providing:
- Stability : Reduced exposure to systemic market shocks.
- Higher Potential Returns : Especially in a rising interest rate environment.
- Strategic Hedging : Counteract potential losses in other investment areas.
At HALO Mortgage Advisory, we provide the expertise required to safely navigate and harness the world of private mortgages, whether you’re looking to borrow or invest strategically.
Considering a diversification strategy for uncertain times?
What is a Private Mortgage?
With a HALO Mortgage Advisory, you invest directly into tangible assets (mortgage-secured real estate) to achieve an attractive risk-adjusted return. These investments are generally available to accredited investors only.
Our three investment objectives:
- Capital preservation/appreciation
- Consistent monthly income
- Avoid volatility of public stock markets
Benefits of Investing in Private Mortgages through a Brokerage
Consistent Returns:
Returns from private mortgage investments have remained far more consistent than many other types of investments.
Alternative Asset Class:
Help smooth out the ups and downs of your portfolio with an alternative to public market stocks, bonds, and direct real estate (ownership/management/investment)
Secured Debt:
In the unlikely event a borrower fails to repay a loan, we can take control of the property and sell it to satisfy the debt.
Simple & Understandable:
The investment industry is constantly changing, and there are always “new products”. Earning interest on mortgages is a tried and tested strategy that has worked since the inception of financial markets by the largest institutions globally (The Banks).
Investor Onboarding Process
We love to chat and learn more about our investors to ensure our investment opportunities suit their risk-adjusted return objectives.
- Schedule a consultation
- Confirm Eligibility & Investment Criteria
- Complete Investor Onboarding Documentation
- Beginning Receiving Opportunities to Consider
Eligibility
HALO Mortgage Advisory welcomes investors who meet specific financial criteria to ensure a mutually beneficial partnership. These standards align with the guidelines set forth by the Ontario Securities Commission and the Financial Services Regulatory Authority (FSRA).
Eligibility Criteria
- Entities with Significant Net Assets: Businesses or organizations with net assets valued at a minimum of $5 million, as verified by the most recent financial statements and confirmed in writing to the brokerage.
- High-Net-Worth Individuals: Individuals, or with their spouse, possessing net assets of at least $5 million, corroborated through written confirmation.
- Ownership of Financial Assets: Individuals, or with their spouse, who own financial assets (cash, securities, life insurance cash surrender value, deposits) with a realizable value exceeding $1 million before taxes but net of liabilities, validated through written confirmation.
- Exceptional Income Levels: Individuals who have reported a net income before taxes exceeding $200,000 in the last two years or a combined income with their spouse surpassing $300,000 in the same period. Additionally, a reasonable expectation of maintaining or exceeding this income level in the current year is required, substantiated through written confirmation.
If you meet one or more of these criteria, we invite you to discuss investment opportunities with HALO Mortgage Advisory Inc.
Partnering with HALO Mortgage Advisory Inc. provides a gateway to meticulously vetted commercial lending opportunities. Confirm your eligibility today and take the first step toward diversifying your investment portfolio.
Frequently Asked Questions
Private mortgage investing involves allocating capital to loans secured by real estate, offering an alternative to traditional investment avenues. At HALO, we specialize in private mortgages focused on income-producing commercial properties and development projects, providing our investors with opportunities to earn returns from real estate without needing to manage the properties themselves.
HALO exclusively works with investors who are members of the Designated Class of Lenders and Investors as defined by the Mortgage Brokerages, Lenders and Administrators Act (MBLAA) in Ontario. This classification ensures that all our investors have the requisite experience or financial stability to engage in private mortgage investing.
Investing in private mortgages with HALO offers the potential for higher yields compared to traditional fixed-income investments, backed by the security of real estate. It's an excellent way to diversify your investment portfolio while benefiting from the steady income stream of interest payments.
While secured by real estate, private mortgage investments carry risks, such as the potential for borrower default. HALO mitigates these risks through rigorous due diligence, careful borrower selection, and securing investments with properties that have strong income or development potential.
HALO conducts comprehensive assessments of potential investments, evaluating borrower reliability, property value, and the feasibility of development projects. We focus on opportunities that align with our standards for risk and return, ensuring they meet our investors' criteria.
Yes, HALO provides detailed information on various private mortgage opportunities, allowing investors to select the ones that best fit their investment strategies, risk tolerance, and return expectations.
To begin investing, you must first confirm your status as a member of the Designated Class under the MBLAA. Following this, HALO requires you to complete our KYC (Know Your Customer) and Investment Suitability forms to ensure the investments we recommend align with your financial goals and risk profile.
Your investments are secured by mortgages registered against the title of the real estate, providing a legal claim to the property should the borrower default, thereby protecting your capital.
Returns vary based on the mortgage's terms and property type. HALO aims to offer competitive interest rates to our investors, generally higher than traditional investment products, reflecting the real estate market's current conditions and the mortgage's risk profile.
For more details or to start your investment journey with HALO, please contact us directly. Our team will guide you through the process of confirming your eligibility and help you understand the potential investments that match your preferences and financial objectives.