• Syndicate mortgages have existed for decades but were reserved for wealthy investors and financial institutions
  • Now available to smaller investors
  • Several investors combine resources to fund large scale real estate projects to create a Mortgage Instrument
  • Mortgage instrument is a contractual agreement between the lender (investor) and the borrower (developer)
  • Every investor has the full amount of their principal registered as a charge at the Land Registry Office (administered by the Government of Ontario) in the individual lender’s name
  • Secured against the land – all charges against the land are paid out before shareholders or debts to the corporation
  • This investment does not fluctuate in value like stocks or mutual funds it has a predetermined interest rate, fixed term (usually between 2 to 5 years) and regular interest payments
  • Syndicate mortgage is a licensed financial transaction which must be underwritten by a Mortgage Agent who is regulated by the Financial Services Commission of Ontario (FSCO)
  • Requires a lawyer to close the investment and register the charge
  • Funds used may be cash, or any registered product (RRSP, RRIF, LIRA, RESP, TFSA and all other registered plans) and are held at Financial Institutions such as Olympia Trust and B2B Trust
  • Allows you to mitigate risk by including an asset backed by real estate
  • Allows you to choose the development you want to invest in
  • Earn above average fixed returns of 8% simple interest per year
  • Investors (unaccredited) must obtain Independent Legal Advice before committing to any investment
  • Transparency of process and projects – Investors are given a detailed mortgage participation package to help in making their investment decision – you know all there is to know about the project and developer you choose to invest in, all documentation and related to the development is shared with all investors including appraisals and details of total funds sought by the developer, your returns and you payment schedule, where your funds are held, when they are forwarded to the developer

In Short

  • Minimum Investment : 25,000
  • Term:     2 – 5 years
  • Return – 8% per year paid quarterly
  • Cash or Registered Funds (RRSP, RRIF, LIRA, RESP, TFSA)
  • Investment secured against real property
  • Transparency – Independent Legal Advice and all documentation shared with Investor