Lenders

Our primary objective is the preservation of capital. Period. There are no guarantees while participating in a private mortgage loan, however our view is that the key to mitigating risk is extensive underwriting and taking a very cautious approach - which includes planning an "exit strategy" in the case of borrower default and enforcement of a loan.

Borrowers must have the capacity and likelihood of servicing the debt, otherwise we will pass on the deal.

Our mantra is that it is always better to decline a good loan than to approve a bad one, and we always err on the side of conservativism.

Private mortgage investments are offered to investors consistent with their goals and risk tolerance. You will not be offered to participate in a loan that doesn't match your lender profile.

Here is a summary of PMC Funding’s underwriting guidelines:

• First mortgages between $200,000 and $3,000,000 syndicated with private lenders in units of $100,000

• Loans not to exceed 65% LTV

• Urban centres across Ontario

• Borrowers must reasonably demonstrate the ability to service the debt

• All properties appraised by qualified appraisers

• Environmental report if deemed necessary

• Net return to investors between 9.75% and 11%

We administer every loan that we fund, meaning that the investment is virtually carefree to the lender. For ease of registration and speed of discharge, all loans are registered in the name of our Mortgage Administration company, Private Mortgage Capital Holdings Ltd. (PMC Holdings) in Trust, and lenders are provided with a Declaration of Trust, which confirms and secures their investment. All lenders must sign a provincially-mandated Investor Disclosure Form, and a Loan Servicing Agreement which details PMC Holdings’ role and responsibilities as Mortgage Administrator.

A syndicated private mortgage is considered to be "non-qualifying" in the event the security is not residential or the loan purpose is for construction. In these instances, your investment will be vetted by an Exempt Market Dealer (EMD), per OSC requirements. All lenders' legal fees and EMD fees are borne by the borrower or PMC Holdings.

All PMC Funding investors are required to be considered "Accredited Investors", per the Ontario Securities Commission. Please check this link to see whether you would qualify to participate in a PMC Funding loan.

Every deal is a “one-off” and each loan is priced according to its own merit with respect to the potential risk involved. We never “sell” a mortgage opportunity to our lenders, but rather we provide investors with all the information they require to make a sound investment decision. This includes the borrower’s application and credit bureau, the purchase agreement (if applicable), financial and operating statements for the borrowing corporation, a rent roll summary, property appraisal, and environmental report if necessary. The timing is usually very tight – borrowers are coming to us because of our ability to close deals quickly – though you will generally have a week or so from the time we call with the loan details to the time the deal closes.

PMC Holdings’ responsibilities include electronically debiting the borrower’s account for interest payments and realty taxes, remitting all taxes to the respective municipalities when due, ensuring that the property is fully insured with the lender listed as the loss payee, direct depositing interest payments into lenders accounts, and most importantly, dealing with any and all issues that may arise during the course of a loan. We deal with any returned payments and retain our solicitor if mortgage enforcement is necessary.

While a borrower might occasionally default on a loan, PMC Funding loans are never larger than 65% loan-to-value, leaving sufficient borrowers’ equity from which to recover our loan. We share our office with our solicitor, which enables us to stay on top of deal closings and enforcement if necessary.

Feel free to stop by our office to meet and discuss any lending opportunities.