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Yes! We understand how difficult and stressful home ownership can be.

Yes! Whether you're in the midst of a financial crisis, facing foreclosure or interested in buying your first home, we can help.

Yes! We'll help you find the perfect first mortgage, home equity loan, secured loan or debt consolidation loan to suit your needs, whatever they may be.

Yes! Our experienced Canadian mortgage brokers will help guide you toward the perfect solution.

Investors

With all the new restrictions placed on the big banks there is a growing demand for private mortgage lenders. Community Mortgage has been providing private lending solutions for over 30 years and we are always looking to acquire new private mortgage investors. Whether you have been a private lender in the mortgage industry for decades or your an investor tired of losing money or getting low returns from your investments we are interested in speaking with you.

With a primary focus on providing clients financing that have been declined by the bank we have a constant and very high demand for private mortgage investors. Whether you are a novice investor or you are an experienced private mortgage lender with a surplus of money we can find the right deal for you!

What is a private mortgage?

A private mortgage is a mortgage transaction which is funded by a private investor rather than a bank or trust company. The investor receives a mortgage from the borrower as security for the monies they have advanced, using the borrower's property as collateral for their investment.

How does it work?

Community Mortgage Services Corp provides the private mortgage investor (you) with documentation and a one on one consultation to help make an informed decision. Documents may include:

  • An appraisal report from an approved appraiser, recognized by the appraisal institute of Canada (it will include pictures, details on the value and how long it would potentially take to sell).
  • Proof of Income (such as paystubs, job letters or NOA's)
  • Copies of the borrower's credit reports
  • A mortgage application (outlining details on the consumer's income, length of residency, job tenure, assets & other financial obligations)
  • Proof of Home Insurance
  • Proof of mortgage balance/history

Once the private mortgage investor is satisfied and agrees to move forward they provide the brokerage with their agreed upon terms which would include the term (length of the mortgage), amortization period and interest rate. Once the borrower agrees to the terms of the mortgage, all documentation, registration of the mortgage(s) and disbursement of funds are governed by the parties lawyers, who also oversee and protect the lender's investment.

Why invest in Mortgages?

Mortgages offer a distinctive investment opportunity. Securing a borrower's property as collateral for the loan provides much better security than what an investor would find in stocks or mutual funds and there is far less volatility. They provide a much higher yield than bonds and still provide the private mortgage lender with a consistent monthly return. Because the rate, term and amortization are all predetermined you know what you will receive monthly and know your annual rate of return on your SECURED investment!

Why are private mortgage investors needed?

Banks decline mortgage investments for a variety of reasons and borrowers have an equal number of reasons for using private investors.

Banks decline mortgage investments because:

  • A client may not meet their high standard for credit.
  • A client may not have enough established credit to qualify for their tight criteria
  • The client may not be able to legitimize their income (ie. self employed)
  • The client may not be purchasing a home that the bank won't finance (ie. rental property, cottage etc)

The borrower would have an entirely different set of reasons for avoiding a bank:

  • Borrower requires short term or bridge financing
  • Borrower wishes to avoid mortgage insurance premiums
  • Borrower wishes to avoid large penalties for breaking their first mortgage and would take a second mortgage until the first mortgage comes up for renewal
  • Borrower wishes to avoid the hassle of providing income documentation

There are a variety of reasons that major banks elect not to finance certain investments and an equally large number of borrowers who do not want to deal with the major banks. Having said that it does not mean that it is a poor investment. It is simply outside the scope of what the major financial institutions are looking for as investments. Banks routinely decline clients with substantial equity in their property because the client can't prove their income in a traditional way or because the client has bruised credit, despite have a logical reason for it. The truth is that major banks look for the "cookie cutter" client. They want a client with perfect credit, in the perfect neighborhood with the perfect job. Considering that in this day and age the "cookie cutter" client represents less than 50% of the population that leaves a huge market for the private mortgage lender.

How much do I need to invest, and what kind of return can I expect?

Because Community Mortgage Services arrange small residential mortgages to help consumer's pay off high interest credit card debt, an investor can start with as little as $25,000.00. Because we also arrange large residential, commercial and construction projects, it allows us to help veteran investor's get millions of dollars out into the market. For questions regarding rates and the return on your investment, please contact us!

How Do I get paid and what are the risks to my investment?

Payments are made monthly and are usually done via post dated cheque or preauthorized debit form. Payments are generally interest only and are not applied to the principal amount. When the mortgage comes to maturity the principal amount advanced is returned to the private mortgage lender or can be renewed at the mortgage lender's discretion.

Private mortgage lenders have the same legal entitlements that banks and trust companies do. Your principal investment is secured by the real estate the borrower has pledged for collateral. A private mortgage lender can exercise a power of sale or foreclosure in the even of a default and the legal costs can be recouped from the proceeds of the sale. A mortgage still has moderate risks as do all investments but they are generally materially lower than most stock and mutual funds as they are secured by property.

Are private mortgages the right type investment for me?

Whether you are a novice investor, tired of getting poor returns from your mutual funds or stocks or you are sitting on a surplus of money that is not invested, private mortgage investing offers a solid monthly return on your investment with low volatility.

Private mortgage investors get a fixed rate of return, receive monthly payments and have the added security in the form of real estate securing their investment.

If you are interested in learning more about private mortgage investing, want to see examples or get testimonials from our other investors we invite you to contact us. Find out how being a private mortgage investor can change the way you view your entire portfolio!