Investing with Canadian real estate collateral as security changes everything.
At Magnetic Capital every investment you make is secured by tangible, valuable, marketable Canadian real estate. We scrutinize, appraise and evaluate every investment we offer, and make sure that the loan-to-value ratio is low enough to optimize your security and peace of mind.
Real tangible collateral means real security.
Smart lending means safer investing.
Smart lending is where Magnetic Capital starts. The concept is simple. Imagine a friend approaches you wanting to borrow $100. They tell you that in return for the loan, they are prepared to give you $125 worth of pure gold to hold as collateral to secure your investment until they pay you back the $100, plus interest. The $125 in gold has more value than the $100 loan. Gold is very marketable, and easy to sell. Therefore, it’s likely that if your friend did not pay you back you could sell the gold quickly, and for more than you are owed. This is the principle of smart lending and it’s the founding principle of Magnetic Capital.
What is a Private Mortgage?
At the end of 2016, the private mortgage market represented roughly 13% of the $1.4 trillion Canadian mortgage marketplace, which is almost double the 6.70% market share reported in 2006, and represents a total of $180 billion worth of private mortgages.
How secure is a Private Mortgage Investment?
Since 1990, the average default rate for mortgages in Canada is less than 0.3%. Statistics suggest that even amidst the most challenging economic times including periods of recession, the default rate for mortgages in Canada has historically never been higher than 0.7%.
Build wealth with Magnetic Capital.
Put your money to work for you today with the security and peace of mind you deserve. Take the guessing and worrying about your investments out of the picture, and watch your money grow at a great fixed rate. Finally see your money do what you have always wanted it to do – make you more money.
The performance of any loan can be predicted by the quality of the collateral that secures it. There is no better investment than a portfolio of performing loans secured by collateral of greater value.