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Why Work With A Licensed Mortgage Brokerage & Administrator?
We are private mortgage lenders rooted in asset-focused lending and clear lending guidelines to provide a common sense underwriting process that has the best interest of the lender, broker and borrower in mind.
Mandatory FSRA Compliance & 3rd-Party Annual Audit;
Consistent Deal Flow with the Lender as Sole Focus;
Protecting the Value and Position of your Security;
Initiating & Managing Mortgage Realization Proceedings (if necessary); and
Initiating Renewal and Discharge Processes.
Lucrative Risk-Weighted Returns
Investments Secured on Title In your Name
Investments Curated for Your Specific Goals
Consistent, Stable Returns With Monthly Payouts
No Management Fees Eroding Your Returns
Mortgage Brokerage / Administrator vs. Pooled Funds
Mortgage lending is a unique investment vehicle that allows for capital preservation through title registration and management of loan-to-value ratios, while offering the potential for yields beyond other secured debt instruments such as a GIC. For the most part, private mortgage lending can be facilitated through a Mortgage Administrator or a MIC / Pooled Mutual Fund Trust. While there are merits to both structures, below are the primary reasons we choose to structure our private lending firm as a Mortgage Administrator as opposed to a MIC / Pooled Fund structure.
Mortgage Administrator
Investors work with a Licenced Mortgage Administrator to set specific investment parameters, providing an investor specific risk-weighted investment strategy.
Investor maintains ultimately decision making control over investments
Lender's legal name / corporation named on Title
No management, performance or overhead fees eroding investor yields.
Use of debt for positive leverage is at the sole discretion and management of the individual investor, and is dependent on their respective investment strategy.
Diversification must be build into each lender's portfolio, and therefore not ideal for investors looking to only invest in few mortgages.
Pooled Funds
While pooled funds create different investment thesis for different fund, you're at limited in the degree of flexibility.
Fund manager makes the decision on mortgages that get invested in.
Pooled Fund is Registered on tile, not the investor.
Fixed management fees are deducted from investor returns, as well as performance and overhead fees.
Funds can take on debt collateralized by investors' capital for positive leverage and to boost management fees, since they're typically calculated on AuM.
With commingling of funds, it offers a diversified option for investors who are not allocating adequate capital to create a diversified mortgage portfolio
The Investment Process
When working with a Licensed Mortgage Administrator like Saffron Capital), the investor process for funding private mortgages is made simple! See the typical process for reviewing, funding and enforcing a mortgage below.
01
Investor Discovery
We begin with an 'investor discovery' to fully understand your goals and investment parameters for this fixed income investment vehicle. This is vital for us as Mortgage Administrators, as it guides us on the investment opportunities we should bring to your attention for funding.
02
Origination & Review
We work with a network of trusted mortgage brokers and financial institutions with consistent deal flow that align with our lending guidelines. We review key information including LTV, credit, affordability, the appraisal & more to ensure the investment aligns with your parameters.
03
Mortgage Regestration
Once you agreed to fund a deal, we put you in contact with a third-party solicitor who represents only your interests on the subject property. In addition, you'll receive a mandatory FSRA document called a 'Form 1 - Lender Disclosure' that outlines the particulars of the mortgage being funded. This document protects lenders by ensuring all pertinent information is communicated.
04
Mortgage Management
Once investors provide funds to the solicitor in trust, and they've been released to the borrower's solicitor, we become the primary point of contact for the borrower. Our primary tasks revolve around ensuring prompt collection of interest payments, protecting the value of the secured asset and the lender's position, and facilitating discharge or renewal documentation.
05
Enforcement (If Applicable)
In the event of missed payment or any act of default under the mortgage, we have the experience and legal network to manage such processes. While it is always our primary intention to work with borrowers to get them back into good standing on the mortgage, if we do not believe the borrower can do so promptly, we (along with our Solicitors) commence mortgage realization proceeding for Power of Sale or Foreclosure to take over the property and recover principal investment, missed interest, and other costs.
Looking to learn more about investing with us? Reach out to our team to discuss.
