Private Mortgages
Our approach to private money lending is designed to provide stable investment returns on attractive first and second position real estate loans backed by operating income. Our strategy combines the stability of real estate with the upside of private equity to align the interests of our investors and borrowers alike. Through a process of due diligence, we create low-risk investment opportunities with an attractive rate of return by originating, underwriting, and funding sensible loans to “Good Borrowers” who need private capital for a short period of time and demonstrate a clear ability to repay your investment.
Our rigorous oversight and approach has made us the preferred investment vehicle for many investors.
HMA is structured to allow investors to invest on a deal-by-deal basis participating in deals that best fit their investment criteria and portfolio. Unlike mortgage pools, the investor is able to pick their specific mortgage investment along with the amount of the mortgage investment and set their terms after being satisfied with the due diligence conducted by HMA.
HMA provides our investors with a complete customized package for each deal; ultimately giving the investor a transparent view of the deal to understand the qualitative and quantitative factors of the deal. All investors/investments are provided with a complete investor’s package in accordance with the Financial Services Regulatory Authority of Ontario (FSRA).
HMA Private lending underwriting guidelines:
- First mortgages between $200,000 and $3,000,000 syndicated with private lenders in units of $100,000
- Urban and Suburban markets across Ontario
- Borrowers must reasonably demonstrate the ability to service the debt or refinance mortgage at maturity
- Appraisals required for each transaction. To be dated within 12 months.
- Environmental report if deemed necessary
- Building Condition Assessment if deemed necessary
- Net return to investors between 6% and 9% for first and second mortgage opportunities
Deals are priced according to their risk profile, transaction type, and mortgage ranking. Investors are provided with the a complete due diligence package to make a sound investment decision.
Due Diligence Package includes:
- Borrower’s application and credit bureau
- the purchase agreement (if applicable)
- financial and operating statements
- property appraisal
- environmental report
- Any other information deemed necessary by investor or HALO
For further information on investing in private mortgages or information on current opportunities, please contact Broker of Record Stephen Thomas at stephen@haloadvisory.ca or (416)-995 2082.
