Podcast
Questions and Answers
What type of mortgages do not qualify for default insurance?
What type of mortgages do not qualify for default insurance?
- Institutional mortgages
- Privately funded mortgages (correct)
- CMHC-approved mortgages
- Low-interest mortgages
Who is qualified to offer mortgage default insurance through CMHC?
Who is qualified to offer mortgage default insurance through CMHC?
- Private default insurers
- National Housing Act approved lenders (correct)
- Second mortgage lenders
- Borrowers with low risk
Why do the majority of privately funded mortgages have higher interest rates?
Why do the majority of privately funded mortgages have higher interest rates?
- Increased risk associated with this type of mortgage (correct)
- Low risk associated with this type of mortgage
- Regulatory requirements
- To attract more borrowers
What is the primary reason borrowers require private mortgages?
What is the primary reason borrowers require private mortgages?
What is the characteristic of an amortized mortgage?
What is the characteristic of an amortized mortgage?
What range do interest rates on second mortgages usually fall between?
What range do interest rates on second mortgages usually fall between?
What defines a private lender according to the Financial Services Regulatory Authority of Ontario (FSRA)?
What defines a private lender according to the Financial Services Regulatory Authority of Ontario (FSRA)?
What is the primary focus of private lenders in security-based lending?
What is the primary focus of private lenders in security-based lending?
Which type of lenders are qualified to offer mortgage default insurance through CMHC?
Which type of lenders are qualified to offer mortgage default insurance through CMHC?
What does a second mortgage mean in the context of privately funded mortgages?
What does a second mortgage mean in the context of privately funded mortgages?
Why do private mortgages tend to have higher fees compared to traditional mortgages?
Why do private mortgages tend to have higher fees compared to traditional mortgages?
Which entity classifies as private lenders?
Which entity classifies as private lenders?
What is crucial to assessing the overall risk of an investment in private mortgages?
What is crucial to assessing the overall risk of an investment in private mortgages?
What has the most significant impact on the need for private mortgages according to legislative changes?
What has the most significant impact on the need for private mortgages according to legislative changes?
What happens to a second mortgage when the first mortgage is paid off?
What happens to a second mortgage when the first mortgage is paid off?
Can private funded mortgages obtain default insurance from Sagen and Canada Guaranty?
Can private funded mortgages obtain default insurance from Sagen and Canada Guaranty?
What are two benefits of a private mortgage for a borrower?
What are two benefits of a private mortgage for a borrower?
What are two benefits of a private mortgage for an investor?
What are two benefits of a private mortgage for an investor?
Why do privately funded mortgages typically have a one-year term?
Why do privately funded mortgages typically have a one-year term?
How do privately funded mortgages differ from institutional mortgages in terms of repayments?
How do privately funded mortgages differ from institutional mortgages in terms of repayments?
Why is it mentioned in the text that a one-year term minimizes risks for private lenders?
Why is it mentioned in the text that a one-year term minimizes risks for private lenders?
What is a characteristic of privately funded mortgages compared to institutional ones, based on the text?
What is a characteristic of privately funded mortgages compared to institutional ones, based on the text?
How does having a one-year term benefit private lenders in terms of market fluctuations?
How does having a one-year term benefit private lenders in terms of market fluctuations?
Why do private lenders prefer shorter terms in more volatile markets?
Why do private lenders prefer shorter terms in more volatile markets?
