Monday, November 19, 2018   /   by Price Team Mortgages


The need for private money has never been so great in our community.   We have been helping hundreds of local people get back on their feet over the years.  These are deserving homeowners with issues that cannot be solved by a bank mortgage and caught in circumstances that can only be solved with a cash infusion with private money.  We listen to their story (everyone has one) and come up with creative solutions.  With the new government regulations, many people do not qualify due to income even though they can easily afford payments.  If credit has slipped even a little bit, these homeowners fall through the cracks.  So our innovative solutions are short term usually a year or two which help homeowners get back on track. The new government B20 regulations have in addition to making it more difficult to qualify, effectively allow Canadians to qualify for 25% less than before, have also made it impossible even with good credit and income for many to qualify for any refinances.

For private investors, it means a return on these private mortgages of between 6 to 14%.  Our investors can use cash in the bank, their RRSP’s or even their tax free savings accounts.

With disclosure of the application, credit bureau, appraisal and most importantly the exit strategy, private lenders know and understand the deal.

As of late, we helped a client who hadn’t paid income taxes for 10 years and there was a lien against their property by CRA.   We arranged a 2ndmortgage for $50,000 , interest only with payments of 500 dollars.  With the CRA lien discharged, we will be able to refinance these clients into a prime bank mortgage in a year.

We had a client recently, who went in firm without conditions on a new house.  When her current home did not sell by the approaching deadline of the purchase, we arranged a private 1st mortgage on the new one without payments until her home is sold.

Deep in debt after being off work due to cancer treatments, we arranged a private mortgage after clients received a Power of Sale Notice for missing a few mortgage payments.

So right now, we are looking for local people who are interested in helping out other local people keep their homes, pay off collections/writs/liens/property tax or other tax arrears.

Private mortgages are secured by the property and a lawyer represents the lender in the transaction.  We are pleased to say in the hundreds of transactions we have brokered over the years, only one resulted in the sale of the property after exhausting every possible avenue.

It’s a win win situation for all involved.  Homeowners who have issues are saved by our solution and the private lender makes a very good return on their money.

If you are interested in hearing more about becoming a private investor or if you have circumstances where we can help, please don’t hesitate to give us a call.

Sandstone Realty Group
Michelle Pitt
33 Main St W
Grimsby, ON L3M 1R3
Office: 289-797-0774

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