Definition
A syndicated mortgage is a loan granted by multiple private lenders (syndicated) who pool their capital to finance a single borrower or project.
**How it works**: - An agent administers the loan on behalf of all syndicated investors - Investors are collectively registered on the mortgage (or through an intermediary vehicle) - Each investor holds a proportional share of the loan
**Use cases**: - Real estate developers not meeting bank criteria (debt-to-equity ratio, required prepayments) - Urgent refinancing (bridge financing) - Atypical properties or complex situations (title defect, mixed zoning)
**Cost**: - Interest rate: 8-15% depending on risk - Origination fee: 1-3% - Term: 6 months to 3 years (bridge financing)
**Risks for investors**: - Borrower default risk - Illiquidity (capital tied up until repayment) - Possible conflicts of interest with the syndicated agent - In Quebec, mortgage syndicates must comply with AMF rules on the distribution of financial products
**AMF regulation**: Marketing of syndicated mortgages to retail investors is governed by securities regulations and often requires a prospectus or prospectus exemption.