Bancorp Balanced Mortgage Fund II
Managed by Bancorp Financial Services Inc.
Data as of: March 31, 2026 · View latest fund facts
This review, compiled by WOWA for informational purposes only, is not investment advice, an offer, or a solicitation. Past returns don't guarantee future results.
AUM
$87M CAD
2025 return
7.89%
LTV
54.00%
Management fee
1.50%
About Bancorp Balanced Mortgage Fund II
Established in 2009, Bancorp Balanced Mortgage Fund II is a medium-risk Mortgage Investment Corporation (MIC) targeting a yield of 4% above the two-year Government of Canada Bond rate. The fund provides interim first mortgages (12-24 month terms) to finance construction and development in BC and Alberta. It limits second mortgages to 15% and enforces a maximum Loan-to-Value (LTV) of 75%. Eligible for registered accounts, the fund pays quarterly distributions, reporting a 7.69% annualized yield for Class D shares in early 2026.
The fund reports approximately $87M CAD in assets.
The portfolio is predominantly composed of first mortgages.
Return of the mortgage funds are closely related to bank prime lending rate of interest, which has been declining. The latest annual return declined from 9.08% in 2024 to 7.89% in 2025.
The portfolio is highly concentrated in BC.
At a glance
| Assets under management (AUM) | $87M CAD |
| 2025 return | 7.89% |
| Overall LTV | 54.00% |
| First mortgages (as a % of the portfolio) | 98.00% |
| Property focus | Residential (33%) / Commercial (5%) / Multi-Residential (25%) / Unclassified (37%) |
| Structure | Private Corporation (MIC) |
| Investor access | Available to individual investors |
Bancorp Balanced Mortgage Fund II portfolio and performance
The portfolio is composed of residential mortgages (33%), commercial mortgages (5%), multi-residential mortgages (25%) and unclassified mortgages (37%).
| Property Type | Share (%) |
| Residential | 33% |
| Commercial | 5% |
| Multi-Residential | 25% |
| Unclassified | 37% |
Note: Land and pre-construction mortgages are classified under commercial mortgages.
Bancorp Balanced Mortgage Fund II has a focus on BC, with 99% of its mortgages located in BC, followed by Alberta (1%).
| Province/Region | Share (%) |
| BC | 99% |
| Alberta | 1% |
Bancorp Balanced Mortgage Fund II returns
| Calendar year | Net return |
| 2023 | 8.64% |
| 2024 | 9.08% |
| 2025 | 7.89% |
Return objective (2026)
Bancorp Balanced Mortgage Fund II has a target return of 6.63% for 2026.
Bancorp Balanced Mortgage Fund II facts
Fund structure
| Structure | Private Corporation (MIC) |
| Manager | Bancorp Financial Services Inc. |
| Series | D |
| Latest data | March 31, 2026 |
Mortgage portfolio
| First mortgages | 98.00% |
| Overall LTV | 54.00% |
| Property focus | Residential |
Fees
| Management fee | 1.50% |
| Performance fee | 25% over hurdle rate of Government of Canada 2 year bonds + 4% |
Additional fund details
As of December 31, 2025, mortgages representing 6.5% of the fund’s outstanding principal were 90 days or more in arrears.
Who can invest in Bancorp Balanced Mortgage Fund II?
Available to individual investors
This fund is available to individual investors.
The minimum investment amount for accredited investors is $10,000.
The minimum investment amount through an advisor or dealer is $10,000.
About Bancorp Financial Services Inc.
Established in 1975, Vancouver-based Bancorp Financial Services Inc. is an integrated real estate finance and investment fund manager. The firm specializes in providing competitive, non-bank mortgage financing to developers and owners across British Columbia and Alberta. With rigorous underwriting and extensive industry expertise, Bancorp originates and manages diversified mortgage portfolios. The manager oversees two primary MICs—Balanced Mortgage Fund II and Growth Mortgage Fund II—alongside syndicated mortgages, prioritizing capital preservation, independent appraisals, and steady quarterly returns for its investors.
Compare other funds by Bancorp Financial Services Inc.
Bancorp Financial Services Inc. manages several mortgage investment entities (MIEs) with different loan and investment objectives. Compare its other funds below.
| Fund | Primary strategy | Approx. size | |
|---|---|---|---|
| Bancorp Growth Mortgage Fund II | Multi-Residential mortgages | $61M CAD | Learn More |
Frequently asked questions
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