Investing in Mortgages
What is Mortgage Investing?
Mortgage investing involves you lending money from RRSPs or cash to fund a borrower’s mortgage with their house as security for the loan.
Why Invest in a Mortgage?
Return higher yields of interest (6% - 12%)Current 5 year GICs are returning less then 3%
Targeted approach provides investments that match your profileTailor your portfolio between higher rates of returns with more risk or more moderate rates of return with less risk.
Liquidity with shorter investment periods (typically 12 months)With investment terms of only 1 year, you can more easily access your capital when required.
Security backed investment (mortgage attached to real asset)Your investment is in a physical property that can be rented or sold if required.
Traditionally less volatile then stocks or mutual fundsAvoid the peaks and valleys of market investments by putting your money to work for you, here in the province we live in.
Predictable income accumulated monthlyYour interest is earned every month and payments will be deposited into your account as they are made by the borrower.
A specialized team that focuses on private Alberta mortgagesSince we only invest in Alberta mortgages our team is up to date on any news and trends that may influence your investment.
RRSP, RRIF, LIRA and TFSA EligibleYou can use your existing accounts, such as your RRSP accounts, to fund mortgage investments
Portfolio diversification Adding mortgages to your portfolio allows you to invest in real estate without the cost & headaches associated with tenants, damage, & maintenance of the property.
How Investing in Mortgages Works
- Getting Started
- Transfer Funds to Trust
- Registration of your Security
- Receive your Payments
- Payout or Renewal
We work with you to find a mortgage (or mortgages) that meets your needs and risk tolerance.
Transfer Funds to Trust
Transfer registered account funds to Canadian Western Trust.
Transfer savings to lawyer’s trust account.
Registration of your Security
Your name is registered on the title of the property securing your investment with the property.
Receive your Payments
You receive monthly payments deposited directly into your account.
Loan Payout or Renewal
At the end of the 1 year term or you can offer a renewal or request a payout. We then repeat the process.