INVEST IN MORTGAGES WITH AMF
- SAFE & SECURE
- HIGH RETURN
- BACKED BY CANADIAN REAL ESTATE
- PROFESSIONALY MANAGED
WANT TO LEND WITH US?
We are a licensed and reputable mortgage brokerage specializing in residential private lending.
Our lenders are individuals who are seeking secure, low risk investments with a higher rate of return.
We are not a Mortgage Investment Corporation (more), we do not pool funds, your funds are lent to homeowners in Alberta, British Columbia and Ontario.
Earn 11-12%+ on average. There are no unexpected fluctuations in your portfolio and payments are received monthly.
Grow your portfolio tax free using your RRSP, RESP, LIRA, TFSA and/or use personal savings, lines of credit as well as company funds.
AMF does not charge file administration fees.
How it works
We offer first and second mortgages in Alberta, British Columbia, and Ontario. AMF Equity Loans are primarily based on equity only.
We do not check credit, require income or employment statements. Why? For more than 30 years now, we have had much success in using equity as the main qualifying factor. The percentage of required equity will vary, depending on the location and condition of the property. More equity is required for rural/farm loans and smaller communities.
All loans are secured by registering the mortgage with Land Titles.
Depending on location (urban vs rural), the property value is typically determined by the current tax assessment and/or realtor opinion with comparable sales.
In major urban cities and surrounding areas, the assessed values are based on the market value of the previous year.
You have control and know where your money is going
A formal appraisal may be required when the tax assessment is considerably lower than the expected market value, often due to extensive home renovations and/or increasing/rising real estate prices.
What to expect
We present you with safe and secure lending opportunities – you choose the ones that best suit your investment profile.
Regardless of your portfolio size, we will find you a mortgage that fits.
With the assistance of our legal team, we perform DUE DILIGENCE, allowing you to make an Informed decision
On each prospective loan, we provide you with:
- Confirmation of property value (more info..), proposed interest rate , total loan to value, term length (typically a one year term with the option to renew), explanation of intended use of funds (ie. loans for renovation, debt consolidation, business capital, etc.
- Terms of prior ranking mortgage(s)- balance, is the mortgage in good standing
- Thorough investigation of the title- check for any outstanding liens and tax amounts owed by the borrower
- Title insurance
- Borrower’s exit plan: refinance at end of term? Sell home? Renew if in good standing
Our clients
Many of our clients are self-employed, contractors, or may have started a new business. Some clients may have recently started a new job or have become unemployed for reasons due to job transition, lay off, or a personal and/or family illness/injury. Others may need additional funds if they are on fixed income pensions, or are going through a difficult life transition such as divorce. Some clients may qualify for conventional lending through banks or credit unions, however choose not to go that route due to the lengthy qualification process.
Timing is very important for our clients. They may have attempted to borrow through their bank, only to be denied after weeks of waiting.
Why should I lend money to a borrower who may not be able to qualify for a traditional mortgage?
With the banks continuing to tighten their criteria for mortgage qualification and refinancing, it has become increasingly difficult for borrowers to meet the threshold. Whatever the reason, the most common characteristic among borrowers is they have a sizeable amount of equity in their properties to support additional financing.
As of January 1, 2022 our foreclosure rate is approximately 2.5%. While some clients may lack the required income (on paper) or credit, etc., to qualify at the banks, the low default rate is a strong indicator that they are able to uphold their contractual obligations.
How is AMF paid?
We charge a separate brokerage fee. Your annual rate of return is not impacted by our fees. At the time of funding, the brokerage and legal fees are deducted from mortgage proceeds.
Your funds are never handled by AMF. They are paid “in trust” to our chosen law firms in Edmonton, Calgary, Vancouver, or Hamilton. They will ensure all conditions are met prior to releasing proceeds to the borrower.
All mortgages are funded DIRECTLY into your chosen method of investment avenue.
All administration of a mortgage can be handled by AMF and can be set-up and earning you money within a week!
What is expected from you as a lender?
- Acknowledge receipt of proposed mortgage information ASAP, preferably within 24 hours.
- Timely email or phone communication.
We value you as well as our clients and invest in relationships as evidenced by a high rate of repeat business.
TRUST IN OUR EXPERIENCE
Canada's most trusted equity lender
REGIONAL LENDING INFO
Lending in BC
- Between November 2020 and November 2021 there was a 21.9% increase ($814,457 to $992,844) in average sale price, on residential properties in the province.
Law firms
- Spagnuolo and Co. LLP, Coquitlam
- Redpoint Law LLP, Vancouver
- BTM Lawyers LLP, Port Moody
Lending in Alberta
- Between November 2020 and November 2021 there was a 6.4% increase ($403,666 to $429,543) in average sale price, on residential properties in the province.
Law firms
- Stillman LLP, Edmonton
- Witten LLP, Edmonton
- West Legal, Calgary
Lending in Ontario
- Between November 2020 and November 2021 there was a 23.9% increase ($744,815 to $992,580) in average sale price, on residential properties in the province.
Law firms
- Spagnuolo Profession Corp, Woodbridge
- Gowling WLG, Hamilton
Quarterly forecast for Canada from CREA: “Sales forecast to moderate somewhat in 2022 but tight supply conditions are expected to continue to push prices higher”
Becoming a private lender is easy!
FREQUENTLY ASKED QUESTIONS
From the time the borrowers sign the mortgage commitments, we estimate anywhere between 5-10 business days on average. There are times when funds could be advanced sooner (first mortgages against clear title properties where prior mortgage statements aren’t required) and times where there are delays due to signing mortgage documents at the law firm, mortgage balance requests (coming directly from the financial institution), etc.
The lender has the opportunity to either renew the mortgage or not. Typical terms are one year. We offer renewals on most mortgages, when payments have been kept in good standing. As the term has expired, this is a chance for the borrowers to payout the mortgage without penalty. There are times when they have bank approval or have sold their properties and therefore pay out.
The way we handle that will depend on the mortgage status. If the mortgage is in arrears, we will likely require the borrowers to find funding elsewhere to pay out the mortgage. If in good standing, we will attempt to move this to another lender within the AMF network. As the lender would want funds by the maturity date, AMF will require advanced notice. 60 days is preferable.
We do prefer that lenders enter in to a longer term investment with AMF. That includes renewing mortgages in good standing and reinvesting paid out mortgages.
The borrower will be charged a 3 month interest penalty for early payout, credited to the lender. We will then do our best to reinvest those funds ASAP. The sooner the funds are placed into a new mortgage, the more compounding interest is earned.
AMF will contact the lender by phone and email. In most cases, payments are made up quickly, with a $150 NSF charge payable to the lender. In the rare case where the borrowers are not communicating with us, a decision will be made after the second payment has cleared or not. If not, we will discuss with the lender the best course of action. Often times, that will result in a letter from the law firm handling our foreclosure work.
Ultimately, the decision is with the lender. We will discuss the best course of action. If multiple payments are missed, yet brought into good standing with the NSF fee included, this may be acceptable. We will always try to work with borrowers, if they are willing to work with us. We do not want to send files immediately to foreclosure, however in the case of multiple payments being missed in a row, with no communication, foreclosure is typically the only way to go. This does not mean the foreclosure will run it’s full course. Often times, even the threat of foreclosure will prompt payment, or full payout.
The foreclosure or “recovery process”, is either handled by a firm that we have used for many years, or a firm of the lenders’ choice. We are kept up to date with the status of the proceedings until the mortgage has been paid out.