Answer: The Contract Interest Rates will vary depending on a variety of factors. Such factors include; market conditions, property type(s), property location, property use, size of the mortgage, mortgage position/rank,, and the applicant details. Get in touch so that we can assess your request without a credit check.

Note: The Contract Interest Rate does not include any Fees and Costs associated with obtaining a mortgage.

Answer: Fees Vary depending on the loan size and specific of the loan application. For a Mortgage Loan of $1,000,000; the Brokerage Fee is approximately 1.5% – 2.0% of the mortgage amount ($15,000 – $20,000). These Fees are deducted from the mortgage and are not an upfront out of pocket expense. For Mortgage Loan that is under $1,000,000, the Brokerage Fees are a higher percentage of the gross mortgage due to the smaller loan size.

Answer: As a property owner, it is your responsibility to put yourself in the best position possible to transition from private financing. When your maturity date is coming up, you will essentially have the following options if you don’t intend to sell you property:

1. Renew – This is generally provided as long as all payments are made as agreed, the property is in satisfactory condition, the property/personal tax, and corporate taxe (if applicable) are all current. Subject to Lender Approval
2. Refinance with a new Private lender – Subject to Approval (Our Brokerage may be able to assist)
3. Refinance with a non-Private Lender – Subject to Approval (Our Brokerage may be able to refer you)

Answer: The options when property is lacking are few, but there are options. If the property is in an urban center or direct surrounding area and there is 10%-15% equity, the options would be as follows:

1. Provide some cash injection to meet a private lender’s criteria for the loan to value requirements.
2. If other property is owned where there is adequate equity, a blanket mortgage can be considered.
3. Sell your property. If the equity is less than 10%, the suggestion is to simply sell your home if you are in a foreclosure situation. (Refinance Situations)
4. Enter in to Rent-to-Own Refinance program. This is when an investor purchases the property from the property owner. A separate agreement is also prepared by both parties with the intention of the home being purchased back at a predetermined date.

Answer: Looking for direct private lenders can be time consuming. If a direct private lender is found, it is possible that they may not be regulated by their provincial body. Mortgage Brokerages are regulated.  The most common ways our Brokerage is able to assist is as follows:

1. 1. Amansad Direct Lending Group’s network of Individual Private Lenders (IPLs)
   2. MIC (Mortgage Investment Corporation) Partners.
   3. Amansad Direct Lending Group Approved syndicated Private Lender Groups.
   4. Amansad Direct Lending Group approved Rent-to-Own Facilitators.

A majority of the mortgages provided are funded within our group of IPLs. In the event you are looking for a Bank/Semi-Traditional mortgage, we can direct or refer you after an assessment has been completed.

Answer: Mortgage Payments are generally interest only. The cost difference over the course of a 12 month term is minimal. 

• Assuming a 8% interest only on $100,000 would have a payment of $666.67 per month with a balance of $100,000 at the end of the term
• An 8% principal & interest with a 30 year amortization would have a payment of  $724.71 per month with a balance of $$99,142.83 at the end of 12 months.

Private mortgages are short term transition solutions. It makes more sense from an accounting perspective to keep the loans simple.

Answer: Payments are made monthly on the 1st or 15th of each month. Payments can also be partially prepaid, or fully prepaid with no payments during the term provided there is sufficient equity.

Answer: Below is the easy and simple process after receiving a quote.

1. Complete Secure Full Application
2. Provide ID Verifications
3. Provide Supporting Documents
4. Complete Appraisal
5. Sign Approval Documents
6. Sign Mortgage Registration Documents with Your Lawyer
7. Complete

Answer:

Yes, on a case-by-case basis. Some of our Individual Lender Partners will allow additional payments can be made towards the principal.

The mortgage is closed, but can be paid out in full anytime. Prepayment Fees are dependant on when the mortgage is paid out and the terms of the mortgage.

The general loan minimum is $50,000; depending on the details of the loan request and total combined loan-to-value. In some cases, a smaller loan amount may be considered.

There is no maximum loan amount. We have a wide variety of Investor/Lender partners that are able to cater to jumbo sized loans. In some cases, the timing of the loan request determines the availability.

The general property value minimum is $150,000 depending on the details of the loan request. In some cases, lesser amount may be considered it the request makes sense and/or if there is other real estate collateral.

There is no maximum property value.

Amansad Direct Lending Group is an E-Commerce Brokerage with Registered Offices in BC, Alberta, Saskatchewan, Ontario, and Manitoba.

• 2500, 10123 99st NW Edmonton AB T5J 3H1
• 202, 1433 St.Paul St. Kelowna BC V1Y 2E4
• 200, 4500 2nd Ave Saskatoon SK S7K 2C3
• 660, 1600 Carling Ave Ottawa ON K1Z 1G3
• 2200 – 201 Portage Avenue Winnipeg MB

Despite a mortgage being an equity mortgage, some of the documents that one would require when applying at a bank may also be requested.  The difference is a bank will decline if it does not like the information provided, but an equity mortgage lender will approve with similar documentation (or lack thereof).

Due diligence is still required. If a Brokerage places an individual into an equity mortgage without verifying the need, the Brokerage can expose themselves to legal action in the future for negligence which can negatively impacts the Brokerage’s insurance policy.

Generally, the information requested is not for qualification purposes, but instead for compliance.

APR means Annual Percentage Rate. It represents all the costs related to loan over the course of a year. It essentially the total interest costs and applicable fees. An APR provides a true cost of a loan. There are however some fees that are excluded from the APR calculation. See https://amansadfinancial.com/understanding-mortgage-apr-in-Canada/.

Yes, nearly 100% of the time. Appraisals are ordered by the Brokerage or the Lender. The cost of the appraisal is the responsibility of the Borrower(s) and it is paid directly to the appraisal company. Prior to applying, and for your own information purposes,  you can contact a Realtor for a CMA (Comparative Market Analysis).

Fee Simple and Strata (Condo) properties will be considered. The more marketable the property, the more desirable it is to lend on.

Leasehold, Rented Pads, and properties within a MHP (Mobile Home Park) are considered on a case by case basis.

Crown Land is NOT considered.

The short answer is YES. If taxes are owing they will need to be paid out using the new mortgage funds. Taxes consist of Municipal/Property Taxes of the property, Personal Tax, and Corporate/Business Tax.

Below is list of common reasons why a private mortgage is requested:

• 1st Mortgages, Equity Take Out/2nd Mortgages for Emergency Situations
• Credit Challenges, Bad Credit or Lack of Credit
• Currently in Consumer Proposal
• Recently Discharged from Bankruptcy
• Foreclosure Refinancing
• Paying out Canada Revenue Agency Tax Arrears
• Paying out Collections, Judgements, Writs on Title
• Home Improvements
• Investor Renovation/Flips
• Financing for Multiple Properties
• Bridge Financing
• Self-Employed, Non-Traditional Income
• Financing using a Holding Company or Corporation
• Spousal Buyout

And more…