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A syndicated mortgage is a single mortgage funded by two or more investors, each holding a proportional interest in the loan and its registered charge against the property, rather than one lender funding the whole amount. Syndicated mortgages are typically arranged through a private lending structure and serviced by a licensed mortgage administrator.
A conventional private mortgage may be funded by one individual or company. A syndicated mortgage pools capital from multiple investors into a single mortgage, with each investor’s share and priority set out in the syndication agreement.
Because syndicated mortgages involve pooling investor money, they typically require a licensed mortgage administrator to collect payments and manage the loan on the investors’ behalf, and are often used to fund higher-risk or construction-stage lending that conventional lenders decline.
Regulated as private lending: syndicated mortgages fall under provincial mortgage brokering and administration rules — in Ontario, FSRA oversees both the brokering and administration side of syndicated mortgage arrangements.
Investor disclosure matters: provincial regulators require clear disclosure to investors about risk, priority, and the terms of the syndication, given that these are often higher-risk lending situations than a conventional insured mortgage.
Administered, not self-serviced: individual investors in a syndicate rely on a licensed mortgage administrator rather than collecting payments directly themselves.
Often used for higher-risk lending: syndicated mortgages commonly fund construction, land, or borrower situations that fall outside conventional and even typical private-lender criteria.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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