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Showing posts from October, 2024

How Interest Rate Cut Affects Your Mortgage Investment?

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Want to know if the latest rate cut will affect your   mortgage investment ? Do MICs consider rate cuts when allowing investors to invest in the mortgage pool? If yes, the answer is that rising or falling interest rates can affect both your mortgage portfolio and investment. Rising interest rates indicate that you will earn more money in your savings account or on the GIC you recently acquired. However, it is possible that your mortgage rate may rise, your auto loan will become more expensive, and your stock portfolio will decline. How do interest rates work? The interest rate is the amount a borrower pays a lender to borrow money. In terms of mortgage investment, it refers to the amount a mortgage borrower pays to a mortgage investor for money borrowed. It operates similarly with an interest-bearing investment. When you purchase a guaranteed investment certificate (GIC), you are giving the financial institution your investment capital at an annual interest rate. A mortgage borrow...

3 Alternative Real Estate Investment Myths Debunked

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Do you want to make a real estate investment and worried about the myths concerning them? Whether you are new to alternative investments or have previously invested in them, you have undoubtedly come through many of its advantages and disadvantages, some of them may not be true. Since investments comes with complexities and risks to some extent, it is important for investors to consider the intricacies related to mortgage and real estate investments before deciding to invest in one. In this blog, we are debunking some common myths regarding alternative real estate investments , like mortgage pool investments to help eligible investors in making the right decision. Myth 1: All alternative investments are same. The term “alternative investments” refers to a wider spectrum of investments that cover assets rather than just funding the borrowers. The most common alternative investments include Real Estate Investment Trusts (REITs) and Private Mortgage Investment Corporations (MICs). All in...