Do I need a mortgage license?
- Thread starter Luxmal
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QUOTE (Luxmal @ Aug 29 2010, 03:54 PM) One friend want to borrow some money from me and let me register second mortgage on his two properties. Do I need a mortgage license for it?
NO.
NO.
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- Mar 12, 2008
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QUOTE (Luxmal @ Aug 29 2010, 08:18 PM) Thanks. Could I keep doing these without license?
You can lend out Your own money. You will need a lawyer to register the mortgage on title and to draft up the documents.
In what province are you working in?
Good questions to ask when lending your money,
What is the current Loan To Value?
Who valued the property at the price?
When you loan the money what will the total LTV be? Are you in a good position?
Can you have references? Does the borrower pay on time?
Get your own appraisal of the property.
Maybe visit the property.
Is your interest rate fair to you and the borrower? This will depend on the LTV, the borrower, the property...
Who pays the legal fees?
Second mortgages are a great way to invest in Real Estate at an arms length approach.
You can lend out Your own money. You will need a lawyer to register the mortgage on title and to draft up the documents.
In what province are you working in?
Good questions to ask when lending your money,
What is the current Loan To Value?
Who valued the property at the price?
When you loan the money what will the total LTV be? Are you in a good position?
Can you have references? Does the borrower pay on time?
Get your own appraisal of the property.
Maybe visit the property.
Is your interest rate fair to you and the borrower? This will depend on the LTV, the borrower, the property...
Who pays the legal fees?
Second mortgages are a great way to invest in Real Estate at an arms length approach.
- Joined
- Aug 31, 2007
- Messages
- 323
I agree with everything Gary has stated above, the key is it needs to be your money, not other peoples money.
For more information on what you should be watching out for, I recommend Greg Habstritt’s book;
http://www.amazon.ca/RRSP-Secret-Powerful-...0248&sr=1-1
Although it focuses on self directed arms length RSP money, his due diligence sections apply to all types of mortgage investments.
For more information on what you should be watching out for, I recommend Greg Habstritt’s book;
http://www.amazon.ca/RRSP-Secret-Powerful-...0248&sr=1-1
Although it focuses on self directed arms length RSP money, his due diligence sections apply to all types of mortgage investments.
- Joined
- Jun 22, 2008
- Messages
- 191
QUOTE (Luxmal @ Aug 29 2010, 03:54 PM) One friend want to borrow some money from me and let me register second mortgage on his two properties. Do I need a mortgage license for it?
Not sure which province you are in. In Ontario, I do think you need a license according to the MBLAA 2006 (Chapter 29)
http://www.e-laws.gov.on.ca/html/statutes/...tes_06m29_e.htm
Definition: Mortgage lending
4. (1) For the purposes of this Act, a person or entity is a mortgage lender in Ontario when he, she or it lends money in Ontario on the security of real property, or holds themself out as doing so. 2006, c. 29, s. 4 (1).
Prohibition re carrying on business
(2) No person or entity shall carry on business as a mortgage lender in Ontario unless he, she or it has a brokerage licence or is exempted from the requirement to have such a licence. 2006, c. 29, s. 4 (2)..
Exceptions are: Financial institutions (FI), directors/employees of FI, referrals and laywers.
So yes, if you are in Ontario, you need to be licensed to deal, trade, lend in mortgages, unless you`re going through a mortgage broker/agent, or you`re on the exception list here: http://www.e-laws.gov.on.ca/html/source/re...gs_r07407_e.htm
Correct me if I am wrong...
Not sure which province you are in. In Ontario, I do think you need a license according to the MBLAA 2006 (Chapter 29)
http://www.e-laws.gov.on.ca/html/statutes/...tes_06m29_e.htm
Definition: Mortgage lending
4. (1) For the purposes of this Act, a person or entity is a mortgage lender in Ontario when he, she or it lends money in Ontario on the security of real property, or holds themself out as doing so. 2006, c. 29, s. 4 (1).
Prohibition re carrying on business
(2) No person or entity shall carry on business as a mortgage lender in Ontario unless he, she or it has a brokerage licence or is exempted from the requirement to have such a licence. 2006, c. 29, s. 4 (2)..
Exceptions are: Financial institutions (FI), directors/employees of FI, referrals and laywers.
So yes, if you are in Ontario, you need to be licensed to deal, trade, lend in mortgages, unless you`re going through a mortgage broker/agent, or you`re on the exception list here: http://www.e-laws.gov.on.ca/html/source/re...gs_r07407_e.htm
Correct me if I am wrong...