Mortgage Minute: Mortgage As An Investment

Date Posted: February 9, 2021

When considering using a mortgage as an investment, you must consider, is the risk tolerance suitable for you? Is it something that you are comfortable with and is it something that you understand?

When looking at mortgage investments there are a few ways you can start. You can find mutual funds that would be some type of mortgage investment within in, but that is not a direct mortgage investment. What is a direct mortgage investment is looking on a one-to-one basis or looking at a professionally managed pool of mortgages. The best way to look at it is that it is a professionally pooled portfolio of mortgages and investors invest within that pool in order to diversify risk.  

Whenever looking at any investment, there is risk associated with it. Though, when looking at risk it does not necessarily mean that risk is a bad thing. You have to determine the amount of risk you can take for the amount of reward you are looking to gain. In terms of Ottawa real estate, we know that the supply is very low, and the demand is sitting very high. This would be the underlying asset into this investment. Due to this, this Ottawa market is showing a lot of growth potential and is currently very secure.

To learn more about investing in mortgages watch the full CTV interview with Michael Hapke; click here.

Contact your Mortgage Broker today for trusted advice