A private mortgage repaid through scheduled instalments
Assadi Private Capital offers three-year instalment mortgages for borrowers who want to pay down their loan through regular payments. Each payment covers interest and a portion of the principal, allowing the mortgage to be repaid in full over three years.
We lend $40,000–$250,000 across Canada, excluding Quebec. Instalment mortgages are available in first, second or third position, and all property types are considered.
How does an instalment mortgage work?
An instalment mortgage provides a schedule for repaying both the money borrowed and the interest charged. As the borrower makes their scheduled payments, their outstanding principal decreases.
Our instalment mortgages have a three-year term. Provided the borrower makes all payments as scheduled, the mortgage is fully repaid by the end of that term.
This structure may suit borrowers who have the capacity to make principal-and-interest payments and want a defined path to paying off their private mortgage.
How is it different from an interest-only mortgage?
With an interest-only mortgage, scheduled payments cover interest, while the principal remains outstanding. The borrower needs to repay that principal separately, often by selling or refinancing the property.
With an instalment mortgage, scheduled payments cover both principal and interest. The borrower progressively repays the loan over the three-year term.
Because the borrower is paying down principal as well as covering interest, instalment payments are higher than interest-only payments on an equivalent loan at the same interest rate.