Alternative To
Private Mortgage Lending
Explore the benefits and drawbacks of private mortgage lending and real estate mortgage trusts to understand which investment vehicle is more suitable for your needs and goals.
Private Mortgage Lending vs. Mortgage Investment Corporations
Private Mortgage Lending
Mortgage Investment Corporation
No Diversification
Private lending is lending funds on a single mortgage. This means the lender personally looks out for their capital. They will have to find a new investment once that mortgage has been paid out. This can take weeks or even months and it is therefore often not feasible to have the capital redeployed quickly. There is also a higher risk associated with this investment vehicle.
Diversification
File review, paperwork, collections, etc are handled by the administrator. MICs relieve the administrative and collection duties from investors, as well as the stress that comes with it.
Administrative Burden
Private lenders review the file with their mortgage broker and lawyer and handle all payment receipts, collecting and discharge statement preparations for compliance purposes.
Easy Administration
Once you have purchased shares in a MIC you can sit back and monitor the performance by professional management of the MIC. The MIC reports back to you how your investment is performing and issues dividends on a periodic schedule. You don’t have to worry about Landlord duties, tenant disputes, rent or mortgage payment collection, and other administrative duties. The MIC handles all of this for you.
Lack Of Experience
Many lenders are not experienced and may let an unfit borrower use their money, not pay it back in a timely manner and this could result in higher risk and sometimes in loan defaults.
Experienced Help
MICs have experienced managers in the mortgage investment sector that will carefully review all documents, review properties and borrowers, manage your investment, and help protect your interests.
High Capital Requirements
Common lending amounts range from $50,000.00 to $250,000.00
Low Captial Requirements
Some MICs have investment minimums from $1,000
Low Liquidity
Should you need your investment capital back, you have to wait for the borrower to pay you out, which can take time.
Higher Liquidity
A lot of MICs have minimum investment terms of 12 months, after which redemptions can occur without penalty, allowing for faster access to your investment capital.
Mortgage Investment Corporation Offerings In Our Marketplace
Access alternative private mortgage investment opportunities that have a track record of offering net annual returns from 7 – 13%*. Enjoy better diversification, lower risk, easier administration, experienced help, low captial requirements and higher liquidity compared to private mortgage lending. Fundscraper is Canada’s premier online private real estate marketplace aiming to help investors diversify their portfolio into pre-vetted real estate offerings.
*Historical performance does not guarantee future returns. Investing in real estate is risky and you should always seek professional advice including tax advice before investing.
NEST Capital MIC
- Residential mortages
- Canada
CMI MIC
- Residential mortgages
- Canada
Royal Canadian MIC
- Residential mortgages
- Canada
Getting started is easy.
1. Sign up. Tell us what you’re looking for so we can help match you with opportunities that suit your investment needs and style.
2. Schedule a call. Our dealing representatives will help guide you through the process.
3. Invest through our fully digital platform. Track your progress and watch your money work for you.
Testimonials from Investors Like You
John D.
Board Advisor; Former CTO, Toys R US Canada
“Fundscraper provides access to investments that have traditionally been limited to only the few.”
Anton K.
AVP, Development Analytics, Riocan
“Fundscraper offers a great investment product for real estate investing!”
Michael C.
Retired, Former Head of Construction of a Publicly Traded REIT
“Thank you Fundscraper for delivering stable monthly distributions!”
Marta Z.
Associate Director, Global Investment Banking, Scotiabank
“The platform is great, the team is very knowledgeable, and the projects are well researched!”
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