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Self-Directed Mortgage Administration

A Private Arm’s Length Mortgage offers investors the opportunity to lend money from a registered account to a borrower. This arrangement takes place between persons who are not related and is structured to ensure that all parties are able to protect their own self-interest.

Community Trust offers clients the following registered account types to choose from to hold their Private Arm’s Length Mortgage:

  • Retirement Savings Plan
  • Retirement Income Fund
  • Registered Disability Savings Plan
  • Tax Free Savings Account
  • Spousal Plans
  • Locked-in Plan
Lender Benefits
  • Diversification within your registered accounts
  • Attractive rates of return
  • Client Services Specialists who are committed to making your experience as seamless as possible
Borrower Benefits
  • An alternative source that offers more borrowing options and flexibility
  • Client Services Specialists who are committed to making your experience as seamless as possible

Step 1: Prepare and submit your application package

In order to apply for a Private Mortgage, you will need to submit the following documents:

From the list above, the borrower needs to sign the Pre-Authorized Debit Form and the Signed Direction Regarding Funds forms.

Please submit your complete package to is@communitytrust.ca

 

Step 2: Community Trust reviews your file

Community Trust reviews your file to determine whether it is in Good Order (IGO) or Not in Good Order (NIGO).

A package is considered to be in Good Order if all the information provided is complete, exhaustive and accurate, and in accordance with the Community Trust guidelines.

1. If NIGO, we will contact the sender and request any missing documents, information, or signatures

2. If IGO, Community Trust will prepare your file for funding

 

Step 3: Community Trust disburses the funds

Community Trust will disburse the funds from your registered account based on the instructions we receive from your solicitor.

 

Step 4: Community Trust collects payments

Community Trust will begin the collection of payments from your borrower according to instructions received from you and your solicitor.

1. Submit a complete package as per the specifications above.

2. Allow for ample lead time when submitting documents, in case any documents need alteration, clarification or correction.

3. If transferring cash over from another financial institution, note that it could take up to 3 weeks to receive the funds in your Community Trust Registered Account.

4. If your borrower is an entity, have the Articles of Incorporation ready for submission with your package.

5. Include the Mortgage Commitment Agreement when a Lender’s Fee exists.

6. Make sure that you have enough funds in your registered account to fund the full amount of the mortgage.

Service Level Agreement (SLA)

Number of Investors ‘Good Order’ Deadline
Fewer than 19 3 days before closing date
More than 19 5 days before closing date

Remember, you’re not alone! As with all areas of our business, we pride ourselves on working collaboratively with our partners. That’s why our Client Services Specialists are readily available to assist you throughout the application process.

 

Local: (416) 763-2291 x 844

Toll Free: 1 (800) 268-1576

Email: is@communitytrust.ca

What is a Syndicated Mortgage?

A syndicated mortgage is one in which two or more persons participate as lenders in a debt obligation that is secured by a mortgage.

Community Trust offers clients the following registered account types to choose from to hold their Syndicated Mortgage:

  • Retirement Savings Plan
  • Retirement Income Fund
  • Registered Disability Savings Plan
  • Tax Free Savings Account
  • Spousal Plans
  • Locked-in Plan

If the deal you are working on is a Syndicated Mortgage, there are a few considerations that you must factor in.

1. Visit the Financial Services Regulatory Authority (FSRA) website to identify whether the deal you are working on is a Qualified or a Non-Qualified Syndicated Mortgage.

2. For Non-Qualified Syndicated Mortgage deals, take advantage of FSRA’s useful Mortgage Brokering Forms to conduct a thorough Know Your Customer (KYC).

Holding a Syndicated Mortgage within a registered account provides you with the following benefits:

Lender
  • Diversification within your registered accounts
  • Attractive rates of return
  • Client Services Specialists who are committed to making your experience as seamless as possible
Borrowers
  • An alternative source that offers more borrowing options and flexibility
  • Client Services Specialists who are committed to making your experience as seamless as possible

In order to apply for a new funding, please submit all of the following documents.

  • Mortgage Funding Direction (reminder complete Execution Direction section)
  • Solicitor’s Acknowledgment and Undertaking
  • Pre-Authorized Debit Form (mortgage administrator)
  • Draft of Mortgage Charge
  • Appraisals prepared and signed by a designated member of the Appraisal Institute of Canada or Canadian National Association of Real Estate Appraisers
    • Appraisals must be dated within 12 months of the application for a Syndicated Mortgage
    • Read our Appraisal Policy for more information
  • Statement of mortgages in priority
  • Signed Direction Regarding Funds
  • Lawyer’s Trust Account Void Cheque

From the list above, the borrower needs to sign the Signed Direction Regarding Funds form.

Once we receive the file, here is the process that your application goes through, provided it is in Good Order.

Lender
  • Check creditworthiness of borrower
  • Terms & conditions
  • Interest rates
  • Fees charged
  • Equity
  • Qualified investment
  • Sufficient funds to fund in registered account including all Community Trust applicable fees
  • Annual Community Trust fees and other applicable fees
  • Valid title to property
  • Insurance coverage
  • Register mortgage charge
  • Deliver final reporting documents
  • Mortgage renewal negotiations & approval
  • Required documents
  • Initiate legal action
  • Collect payments
  • Payments in arrears
  • Communicate with borrower
Agent/Broker
  • Deliver required documents to Community Trust
  • Represent client if applicable
  • Deliver Project Checklist
  • Delivery Appraisal
  • Acquire client’s authorization to act on their behalf
  • Acquire Mortgage Agreement document signed by the client/investor/lender
Mortgage Administrator
  • Completion and submission of the ‘Project Checklist’ for each transaction or funding
  • Guiding investors and arranging the collection of all documentation required by Community Trust
  • Submission of any subsequent execution directions on investors’ behalf
Lawyer
  • Collect required documents
  • Valid appraisal
  • Final reporting
  • Register mortgage charge
  • Disbursement of advance
  • Prepare documents to be executed
  • Prepare discharge documents
  • Disbursement of payouts
  • Provide client approved payout statements

1. Submit a complete package.

2. Allow for ample lead time when submitting documents, in case any documents need alteration, clarification or correction.

3. If transferring cash over from another financial institution, note that it could take up to 3 weeks to receive the funds in your Community Trust Registered Account.

4. If your borrower is an entity, have the Articles of Incorporation ready for submission with your package.

5. Include the Mortgage Commitment Agreement when a Lender’s Fee exists.

6. Make sure that you have sufficient funds in your registered account to fund the full amount of the mortgage.

Service Level Agreement (SLA)

Number of Investors ‘Good Order’ Deadline
Fewer than 19 3 days before closing date
More than 19 5 days before closing date

 

Remember, you’re not alone! As with all areas of our business, we pride ourselves on working collaboratively with our partners. That’s why our Client Services Specialists are readily available to assist you throughout the application process.

Local: (416) 763-2291 x 844

Toll Free: 1 (800) 268-1576

Email: is@communitytrust.ca

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