Assadi Private Capital provides private mortgage financing secured by rural and remote real estate across Canada, except Quebec. We consider first, second and third mortgages ranging from $40,000 to $250,000, including properties that conventional lenders may be unwilling to finance.
Our equity-based lending approach allows us to consider unconventional properties and locations, provided there is sufficient recoverable equity and a credible repayment strategy.
Why Do Lenders Avoid Rural Properties?
Rural real estate presents challenges that can make traditional lenders reluctant to provide financing.
- Limited buyer demand: Properties in smaller communities and remote locations may take longer to sell, particularly when there are few comparable properties or prospective buyers.
- Valuation uncertainty: Rural properties may have limited recent comparable sales, making market values more difficult to establish reliably.
- Property characteristics: Acreages, older homes, seasonal properties, private water and septic systems, and unconventional construction can fall outside conventional lending policies.
- Higher enforcement risk: If a borrower defaults, a lender may face longer selling periods, greater property management expenses and additional costs to recover its investment.
As a result, borrowers with substantial property equity may still struggle to obtain financing from banks and other mortgage lenders.
Our Approach to Rural Property Lending
Assadi Private Capital evaluates rural mortgages individually, with particular emphasis on the property’s location, condition, marketability and estimated value in a realistic sale scenario.
We generally limit loan-to-value (LTV) ratios to 65% in remote areas, with lower limits where circumstances warrant. Poor credit, unconventional income or a property’s rural location does not automatically disqualify a transaction.