Real Estate Mortgage Investments in Toronto
Mortgage Company of Canada (MCOCI) believes real estate has long been considered one of the best investments you can make. When it comes to long-term capital appreciation, the strongest real estate market in the country is found in Toronto and the Greater Toronto Area. Unfortunately, most Canadian investors cannot afford to build up an extensive real estate portfolio in Toronto. Instead of real estate, investors looking to increase their wealth and build their retirement portfolio, should consider investing in real estate mortgages in the GTA.
Where once tried and true fixed income investments like GICs pay just two percent for a one-year term, Mortgage Company of Canada has continually exceeded our target yields of 9%.
Understanding Real Estate Mortgage Investments in Toronto
Most people will need to secure a mortgage when they buy residential or commercial real estate. There are two kinds of lenders, institutional and private. Institutional lenders include banks, trust companies, and credit unions; this is what most investors think of when it comes to mortgages. People look to institutions to get the lowest possible rate for a mortgage.
Private lenders on the other hand, are individuals or companies that provide mortgages to those who may be unable to obtain financing from institutional lenders because of stricter lending rules and personal financial situations (credit rating, debt, self-employed, etc.). For this privilege, borrowers pay higher interest rates. A private lender can be a good fit because they usually provide one-year terms. This makes it easier to secure an asset without having to contend with the stringent requirements of a bank.
MCOCI pools investor (shareholder) capital and lends that capital out as predominately residential mortgages in the GTA. As a MIC, the company earns income from those mortgage investments on interest charges and general fees.
The real appeal of investing in real estate through a MIC is both the strong yield it provides and special tax breaks that shareholders can take advantage of. MCOCI is a flow through, meaning the corporation doesn’t pay taxes and must distribute all the income to shareholders. It is because of these reasons that investing in a MIC in the GTA is a sound financial decision.
Why You Should Invest in Real Estate Mortgages
There are a number of excellent reasons why you should consider investing in mortgages secured by residential real estate.
Mortgage investments deliver above average returns, especially when compared to GICs and bonds. MCOCI’s investments are secured by residential real estate. We pool your investment with other investors and diversify it by investing in many smaller mortgages. This helps us reach our target monthly distribution, which we distribute to investors in the form of dividends, helping your investment grow.
When compared to the stock market, private mortgages are reliable and secured by residential real estate. On top of that, MCOCI is governed by an independent board of directors who have a strong track record. This extensive experience helps manage risk and provides investors reliable, high yield returns. MCOCI has a strong board of directors with experience in the public market, real estate, and risk market.
Secured by Real Estate
Investments with MCOCI are secured by real estate in Toronto, which we believe is one of the strongest real estate markets in the world.
MCOCI – Investing in Real Estate Mortgages in Toronto
Private lenders are becoming more and more popular with Canadian homebuyers. Because of stricter lending rules, better quality borrowers are turning to alterative lenders for mortgages. If you’re looking to strengthen your investing portfolio, consider the Mortgage Company of Canada’s high-yielding residential real estate mortgages.
Thanks to a seasoned management team with over 45 years of lending experience in real estate, the public market, and the risk market, as well as a reputable independent board of directors, Mortgage Company of Canada has been able to provide investors with a stellar high yield annual dividend of 9.25%, with distributions paid monthly.