The weighted average loan-to-value ratio of our mortgage portfolio, as a whole, at the time of underwriting each loan in our portfolio, may not exceed 75%. A typical loan in our portfolio has an interest rate of 7.75% to 10% per annum, a one or two-year term and monthly interest-only mortgage payments. Our lending parameters are as follows:
- First or second mortgages on income-producing real estate up to a maximum of 85% of appraised value.
- Mortgages on residential and commercial properties up to a maximum of 75% of appraised value.
- Loans on single family residences up to 75% of appraised value.
- Construction loans up to a maximum of 90% of cost.
- Loans to condominium corporations.
Mortgage loan amounts are generally $300,000 to $30 million. The largest single mortgage in our mortgage portfolio as at December 31, 2017 was $32.3 million (December 31, 2016 - $27.5 million). For loan amounts in excess of $30 million, we generally co-lend with a financial institution or private lender.
The parameters listed above are our maximum mortgage lending parameters. At December 31, 2017, the weighted average loan-to-value ratio of the mortgage portfolio remained conservative at 61.5%, compared to 62.7% at December 31, 2016.