Ontario Wealth Management Corporation, "Owemanco", a mortgage broker licensed under the Mortgage Brokers Act of Ontario, represents private lenders providing equity-based mortgage financing. Many of these loans are for transactions that do not fit within the lending guidelines of traditional financial institutions. As "bricks and dirt" lenders, Owemanco evaluates the strength of a property, rather than the people or business in it.

Owemanco represents lenders and only sources deals from other brokers who independently represent the borrower. With more than 20 years' experience in arranging private mortgages, we have found that this approach is the most efficient way for the parties to be properly represented and advised. When a mortgage transaction becomes complicated, lawyers will be retained for advice before a deal is consummated.

A continuing source of concern to salesmen is their obligation to the interests of both the producer and the consumer of the product or service they are selling. This is particularly acute for financial intermediaries such as mortgage brokers where a fundamental element of their product, money, is price, with borrowers and lenders seeking opposite results.

Generally we will advance a maximum of 65-75% of a property's value (inclusive of all prior encumbrances) based on a comprehensive report provided by one of our approved appraisers. The precise terms of each mortgage are specific to the individual deal, but private first mortgage rates currently range from 8.5-10.5%. Just as all real estate is unique, we treat every deal individually and as such the interest rates will vary according to the circumstances. Borrowers typically pay a broker/lender fee for arranging financing of 3-5% of the loan amount that we would be pleased to split with you as our referral source. Other costs the borrowers may incur include legal fees, and expenses for appraisal and environmental reports. Our commitments offer 1 or 2 year terms, which are fully open upon payment of 1 or 2 month's bonus, according to the term.

The potential for conflicts of interest has long been recognized by the legal profession, which maintains a standing requirement that the parties to a transaction require separate counsel. In contrast, real estate agents are not bound by such convention and openly represent both buyer and seller even though the parties are often adverse in interest, particularly with regard to price.

The vast majority of mortgage loans involve institutional lenders; as such, mortgage professionals are predisposed to perceive the borrower as the client and that the lenders do not rely on them for advice. In the private mortgage context however, the dynamic is different; lenders may lack the degree of sophistication and experience necessary to underwrite mortgages, requiring the advice of a mortgage broker. Owemanco has the sophistication and experience; they rely on the referring broker to present the deal and to competently and ethically represent the interests of the borrower. In order for mortgage brokers working in the private mortgage sector to be recognized as professionals, it is imperative that they recognize and advocate the interests of their client, be it lender or borrower.

One frustration for mortgage brokers is a borrower who likes to shop. This is both professionally demeaning and a challenge to one's ability to earn a living. This is not to say that there should not be a competitive market place. The job of mortgage brokers in a particular transaction is to make sure that the price is competitive and reasonable, and that the deal benefits both the borrower and the lender. It should be remembered that once a borrower is seeking private financing, the alternatives available have narrowed substantially. The key to success in arranging private mortgages is to communicate to the lenders the needs of the borrowers, and to obtain a financing proposal that meets those needs.

Owemanco's methodology is straightforward: After an inquiry Owemanco confirms property values and determines whether the deal has merit. Because Owemanco has access to real estate sales and listing information, we are able to move very quickly to issue a commitment. Once the borrower accepts the commitment, they are asked to provide a deposit, typically 1% of the principal amount of the loan. A Statement of Mortgage is prepared by the referring broker. At that point Owemanco's lawyers are retained to work with the borrower's solicitor to facilitate and complete the deal.

Owemanco will treat your inquiries seriously; by the same token when you obtain a lead for a loan you should move quickly to determine precisely the needs of the borrower and secure the business by obtaining an Owemanco commitment.

We look forward to delivering your first Owemanco commission cheque and many more to come.