Ch.1: What is Self-Directed Mortgage Lending

Lender Expert - Be The Lender

Chapter 1 - What is Self Directed Lending?


We’d like to teach you how to recognize a Mortgage Opportunity, with this course Lender Expert — Be The Lender, Canada’s 1st Online Course that teaches you how to be a self-directed mortgage lender.


Years of expert mortgage financing knowledge will be earn upon completion of this course, brought to you by the Partner's at The Funding Department, Canada's National Mortgage Broker Support Desk.


Thousands of Mortgage Brokers and individual clients in Canada look to our team for Mortgage Lending Advice. Understanding how to identify a lending opportunity is paramount to having a sound lending portfolio. Making quick decisions in a confident manner will set you apart from other investors. You can bank on learning from professionals here at Canada’s ONLY National Mortgage Broker Support Desk - The Funding Department.


There are thousands of individuals across the country who lend out their own personal money in the form of a mortgage. This is called Self-Directed Mortgage Lending. So let’s dive right in


So What is a Mortgage?
It is important to distinguish the difference between the legal and financial aspects of a Mortgage. Legally Speaking a mortgage is not a loan. A mortgage is an interest in land created by a contract, used as security for a loan given by a lender to a borrower.


So why do this?

The most common reason someone would seek a mortgage loan is for the purchase of a home. Home prices usually far exceed the amount of money someone could save up in order to buy it with all cash. So instead, a down payment in the form of a small part of the total purchase price is provided by a Buyer, and the rest is borrowed, from a Lender. Normally a Bank or other Institution will provide the Loan and intern, register a mortgage, on the property as security.

Some other common reasons a home owner would seek mortgage financing are situations like: Taking out equity to do some renovations, to pay off and consolidate debt such as credit cards, LOC’s or vehicle loans, to put money into investments such as new business ventures or use as down payment on a new home purchase or rental property. Or it could be used for buying out a former spouse off title or another family member.


The list of reasons for a Home Owner to use Home Equity could go on and we’ll outline a real life example in detail throughout this course.


Make sure to watch our presentation above as we outline what to expect as investor, for example what does the investor get. In addition we dive into all types of avenues that you can use to access money for the purpose of mortgage lending.