Investing In Mortgages In Canada
In times when the Canadian real estate and mortgage market is at record levels, every investor should know how to benefit from it. At Inveloft MIC, we want to make the investment process simple for investors who wish to participate in the growing mortgage industry.
At Inveloft Mortgage Investment Corporation, we offer you a unique advantage to benefit from Canada’s record housing market – through investing in Canadian real estate secured mortgages. While most would not consider investing in private mortgages like these, they are a great option for great consistent high interest returns, higher than many investment products on the market.
On top of this, they are an excellent option for small markets, mostly because of the less depreciating nature of real estate when compared to other investment options. With our conservative lending approach, our risk is reduced for principle loss.
As a Mortgage Investment Corporation (MIC), we are an investment company that allows investors to invest in private residential and commercial mortgages. We work in accordance to the Income Tax Actdefined criteria for a MIC and legally pay 100% of our annual net income to shareholders in the form of dividends.
Inveloft MIC specializes in lending to sectors of the mortgage market in Canada, typically the ones underfunded by traditional financial institutions. Thanks to the growing real estate market in Toronto, we are here to give investors a unique chance to generate positive returns year after year.
The Benefits Of Investing With Us
- Spreading your investment across a large pool of mortgages and mitigating risks associated with investing in a single or specific mortgages
- Getting your investment managed by a team of professionals with decades of combined experience
- Investing with a corporation that is subject to Federal regulations and the provisions of the Canadian Income Tax Act as well as an active oversight by the Ontario Securities Commissions
- Getting your investment audited each year in our statements, similar to the auditing process of a publicly traded company
- Benefiting from a predictable, steady and monthly income while enjoying the safety, security and support from our team
How To Invest With Us?
At Inveloft, whether you plan on investing with us using your cash savings or your registered savings plan, you will need to be qualified under one of the exemptions in order to purchase shares.
There are several different prospectus exemptions under National Instrument 45-106 which MICs use to qualify investors in buying shares. At Inveloft we offer three of the most commonly used exemptions utilized for investments purchased under the class of Preferred Shares.
The three most commonly used exemptions are Offering Memorandum Exemption, Accredited Investor Exemption and Minimum Amount Investment Exemption.
Read below to find out which exemption fits with your criteria or contact us for a consultation.
To help you better understand how our investment process work, we have created two step by step guides to give our investors more clarity and transparency.
Offering Memorandum Exemption
For investors using this exemption, you will receive an Offering Memorandum to review, along with the Risk Acknowledgment Form 45-106F4 which accompanies the Subscription Agreement.
For Ontario investors using this exemption, you as an individual can invest up to $10,000 as a “non-eligible investor”, $30,000 as an “eligible investor” or $100,000 as an “eligible investor who have received advice from a portfolio manager, investment dealer or exempt market dealer”, within a 12-month period. Any left-over limit is not carried over to the next 12-month cycle.
For all other provinces and territories, please refer to the Offering Memorandum or consult one of our agents for further details.
The investment limits listed above do not apply to investors that are not individuals.
While there are several definitions which an investor can be qualified as an “eligible investor”, the most common will be determined by the minimum income or wealth criteria. To qualify under these criteria as an individual investor, you must generally meet one of the following:
- Annual net income of at least $75,000 as an individual or $125,000 if combined with your spouse for the last two calendar years
- Net assets of $400,000 alone or with your spouse
Accredited Investor Exemption
An “accredited investor” is defined in National Instrument 45-106 as an investor that meets certain minimum income or wealth criteria and can include individuals, corporations, trusts, investment funds and other types of legal entities.
For individual investors using this exemption, you must meet one of the following criteria:
- Annual net income of at least $200,000 for the last two years or $300,000 if combine with their spouse.
- Net assets of at least $5,000,000, either alone or combined with their spouse.
- Net financial assets (i.e. cash, securities, insurance, deposits) of more than $1,000,000, either alone or combined with their spouse.
The limit of amount of shares you can purchase depends on the total outstanding shares available. No single investor can purchase shares which will result in the investor owning more than 25% of the total outstanding shares.
Certain individuals using this exemption will be required to complete and sign a Risk Acknowledgement Form 45-106F9 along with your Subscription Agreement.
Minimum Amount Investment Exemption
For investors using this exemption, you must not be investing as an individual.
An ‘individual’ is defined as a natural person and does not include any of the following: partnerships, unincorporated associations, unincorporated syndicates, unincorporated organizations, trusts and natural persons acting in the capacity of trustee, executor, administrator or personal or other legal representative.
The minimum cash acquisition cost is $150,000.
For more detailed descriptions on any of the exemptions, please refer to the Offering Memorandum and Subscription Agreement.
*All of the figures are in Canadian dollars (CAD)