We are currently accepting new investors who are looking to increase their earning potential. The mortgage lending space is not easily navigated and we are here to assist. By investing in our fund we will diversify your investment across many different mortgages reducing your risk and provide you the best possible return.
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Top Reasons to Invest in Harvest MIC
1. We are confident investing in Harvest Mortgage Corporation will augment your portfolio and align with your investment strategy contributing to your financial goals.
2. Harvest Mortgage Corporation strives to offer an attractive rate of return based on the level of risk associated with the underlying real estate asset. Putting emphasis on both the borrower and the marketability of the real estate itself, our proven model and disciplined approach to underwriting creates a diversified portfolio that can endure tough economic cycles while mitigating investor risk.
3. Over the past ten years, with the introduction of tighter regulations, Banks and Trust companies cut back on some of their lending practices, creating a need and an opportunity for alternative lending, now only available through alternative non-bank lenders. These regulations have altered some traditional lending guidelines and are much more onerous for self employed, life changed individuals, new to Canada and non-traditional income earners to mention a few. Alienating hard working quality people who are not only deserving, they have good equity and/or a solid credit rating. Many of these financing products once available to this group unfortunately are no longer offered.
4. It is often said “when one door closes, a window opens” These new restrictions have created opportunities for mortgage investment corporations, ultimately opening the door to Harvest Mortgage Investment Corporation and their investors. Our goal is to fill that open void, meet the challenges of a changing market, while benefiting both the borrower and our investor.
5. Harvest Mortgage Investment Corporation’s management team are both licenced mortgage brokers that deal in mortgages as well as a Real Estate Broker. Both licensed in the province of Ontario with 50 plus years of combined experience. This ensures that all applications meet industry standards, Harvest Mortgage Investment Corporation‘s lending criteria, and equally important, sensibility and saleability should a forced sale be required.
6. In Ontario, mortgages are a full-recourse debt. A full recourse debt means that no matter what happens—be it illness, job loss, or death of the borrower—the mortgage lender has options to recover the debt. If a mortgage borrower fails to make a payment, the lender can move to power of sale quickly. Saying that, Harvest Mortgage Investment Corporations investment objective is to identify low-risk, first and second residential mortgages in Ontario, with a maximum loan-to-value ratio of no more than 80% on first mortgages and 75% on second mortgages. Like most MICs we do not work in a box, so the LTV differs from mortgage to mortgage, but we try to keep our overall portfolio LTV under 75% to be on the safe side. Investors can be assured all mortgages, with the exception of bridge loans, are covered by title insurance and to further protect our investor an “assignment of rents” are registered on all closings.
7. Harvest Mortgage Investment Corporation only accepts applications from FSRA-licenced mortgage agents and brokers. Ontario’s vast network of mortgage brokers and agents act as an external sales force that identifies and refers mortgages to Harvest Mortgage Investment Corporation that allows us to grow the portfolio. By doing so Harvest Mortgage Investment Corporation offers investors a portfolio of low-risk first and second mortgages through a diversified pool of mortgages in Ontario.
8. Harvest Mortgage Investment Corporation lends on residential property located in urban and suburban areas in desirable areas. Our investments provide access to residential mortgage markets not typically available to individual investors, a reliable high yield quarterly income with lower volatility than equity markets and better returns than bonds and GIC’S.
9. As an investor, you can also choose to take advantage of our automatic dividend reinvestment plan (DRIP) and gain the benefit of compounding your return or you can receive the quarterly dividend by direct deposit to a specified account.
How to Invest
Hold your investment personally or in a self-directed RRSP, TFSA, RRIF or IPP.
Since 100% of a MIC’s income can flow through to registered plans (RRSPs, RRIFs, TFSAs, RESPs, RDSPs, etc.) without intermediary tax, and be reinvested, investors can grow the entire return on a tax-exempt basis until the funds are withdrawn. Essentially, the MIC allows the investor to share in the benefits of the lucrative and relatively secure mortgage business.
Simply complete the form above or give us a call for more information.
As with certain other private company shares, Harvet Mortgage Investment Corporation shares are not traded on an exchange and there is no resale market. Share liquidity is linked to portfolio liquidity and MIC rules.
Harvest Mortgage Investment Corporation diversified portfolio has an average term to maturity equal to or less than 365 days (due to the short term nature or needs of Harvest Mortgage Investment Corporation’s typical borrower).
Because of this portfolio liquidity, it is not unreasonable in the near future for Harvest Mortgage Investment Corporation to accommodate requests for redemption upon receipt of appropriate advance notice from the investor to redeem their preferred shares (please read Harvest Mortgage Investment Corporation’s item 10 found in the memorandum of understanding).
Harvest Mortgage Investment Corporation’s goal to always be fully invested in order to achieve the highest rate of return for our investors while working closely with investors to accommodate any unforeseen liquidity requirements.