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private-mortgage-investing
Private Mortgage Investing
Lend capital as a private mortgage investor — secured yield, RRSP/TFSA options, and due diligence.
Articles in this
what to read
Private mortgage investing lets you earn secured returns by lending your capital against Canadian real estate. These guides cover how private lending works, mortgage security, registered account options, MICs, and how to evaluate lending opportunities.
- How to Invest in Private Mortgages in Canada (2026 Guide) · Pillar
Learn how to invest in private mortgages in Canada. Secured lending, RRSP/TFSA options, due diligence, returns, and how private mortgage investing works.
- Mortgage Investment Corporation: Lending vs Equity in Canada · 7 min
How a mortgage investment corporation funds cash-flow lending and LP equity in Canada—Keasy MIC, RSP/TFSA, Hamilton 10-plex.
- MIC vs Direct Private Mortgage Investing in Canada (2026) · 4 min
Compare Mortgage Investment Corporations with direct private mortgage lending. Control, liquidity, diversification, RRSP eligibility, and which path fits capital providers.
- RRSP Private Mortgage Investing: Step-by-Step Canada Guide · 6 min
Step-by-step guide to lending RRSP funds as private mortgages in Canada. Self-directed accounts, trustees, documentation, and tax advantages explained.
- RRSP Real Estate Investing: REITs, MICs & Strategies · 9 min
Use RRSPs for real estate investing in Canada. Learn about REITs, MICs, private mortgages, and the Home Buyers' Plan with tax advantages.
- Mortgage Investment Corporations: An Alternative Way to Invest in Real Estate · 6 min
How MICs work as passive real estate investments: yields, risks, diversification, and how to evaluate MIC opportunities.
- Private Lending & Development Deals: Investor Returns · 8 min
Invest in private lending and real estate development deals in Canada. Deal structures, risk mitigation, off-market access, and realistic return expectations.
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Questions About Private Mortgage Investing
Practical answers on private mortgage investing for Canadian real estate investors — financing, strategy, and next steps.
How Private Lending Works
You lend capital secured against real estate, typically in a registered mortgage with an agreed rate, term, and priority on title. Your return comes from interest (and sometimes fees), not from operating the property. You are a creditor — if the borrower defaults, your remedy follows the security and provincial enforcement rules, not a landlord’s playbook.
A first mortgage is paid first from sale or refinance proceeds; a second sits behind it and takes more risk for a higher coupon. Combined loan-to-value, not just the second’s size, drives loss severity. Understand the prior lender’s balance and whether that loan can readvance before you fund a second.
Registered Accounts & MICs
Some private mortgages can be held in registered accounts when a qualified trustee and the plan rules allow it. Eligibility, prohibited investments, and administration fees are account- and deal-specific. Ask the trustee and a tax advisor before you assume a mortgage is RRSP- or TFSA-eligible.
A MIC pools investor capital across many mortgages and is subject to its own corporate and tax rules. You buy diversification and a manager’s process, and you give up control of each underlying loan. Read the offering documents for concentration, liquidity, and how the MIC values and provisions loans.
Risk & Getting Started
Borrower default, overstated value, construction or permit delays on the exit, and illiquidity — you may not get your capital back on the maturity date you hoped for. Seconds and high combined LTV files magnify those risks. Past interest rates are not a guarantee of repayment.
Start with your liquidity needs, risk tolerance, and whether you want a single mortgage or a pooled product. Speak with licensed professionals who can explain security and servicing — this is not the same as buying a rental. A LendCity conversation can also clarify how private debt sits beside, not instead of, your other real-estate plans.
How Private Lending Works (Continued)
Review the appraisal or value evidence, title, taxes, insurance, borrower story, and exit (sale, refinance, or cash flow). Confirm who holds the mortgage, how payments are serviced, and what happens on default. If you cannot explain the exit in two sentences, you are not ready to wire.
Still have questions? Talk to an expert.
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