Syndicated Mortgages:
Updated Rules
– By Glynis Van Steen
T his past April, the Ontario government announced some
big changes for individuals participating in the syndicated
mortgage market. What exactly is a syndicated mortgage?
Quite simply, it’s an Arm’s Length mortgage created when a
group of investors choose to collectively fund one mortgage
instrument.
Here is a bit of background history: In
response to the U.S. mortgage meltdown of 2008, the Federal
Government and bank regulators changed the rules for
financing large commercial real estate projects. Commercial
banks used to finance large building projects up to 85% of
the value, covering both the soft costs of paying to transform
a piece of property from its current use, and the hard costs
to pay for construction. The developer had to use his own
funds to cover the remaining 15% of the cost of the project.
I’m dedicated to helping
you, through real estate,
to achieve a financially
satisfying lifestyle:
• Private lending
• Refinances and
purchases for
self-employ