No Negative Return

Since Inception (2004)

Monthly distribution and redemption policies

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8.25-8.75%

2025 Target Rate

Of Return

No Negative Return
Since Inception (2004)Monthly distribution and redemption policiesLEARN MORE

8.25-8.75%

2025 Target Rate

Of Return

Past performance is no guarantee of future results. Actual performance may vary materially from the above-projected return. For more information, including offering documents that key risks and features as well as qualification to purchase, please visit, www.awcapital.ca.

Private Mortgage Investments in Canada

WOWA Simply Know Your Options

Investing in private mortgages allows you to receive a steady stream of income while diversifying away from stocks and bonds. Becoming a private mortgage lender doesn’t mean that you need to be a corporation or business. As a private investor, you can invest individually in mortgages or invest in a pooled fund with other private investors. Private mortgages may allow you to receive a higher rate of return than other investment options, however private lending can come with higher risks.

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FSRA Licenses: Administrator #13679 | Brokerage #13753

Mortgage Investment Corporations pool funds from investors to finance non‑bank (‘private’) mortgages—emphasizing asset‑based lending outside the traditional banking system. Similar to purchasing regular stocks, a person looking to invest in private mortgages can simply purchase shares of a MIC. Some MICs that are publicly traded on the Toronto Stock Exchange (TSX) include Atrium Mortgage Investment Corporation, MCAN Mortgage Corp, and Timbercreek Financial. You can buy stocks using a stock trading platform or brokerage.

A corporation qualifies as a Mortgage Investment Corporation only if its principal business is investing funds in mortgages and related interests in real property, rather than developing or managing real estate. As a result, a MIC cannot carry on a real estate development or property management business. To qualify as a MIC under the Income Tax Act, a corporation must generally have at least 20 shareholders and limit individual ownership to 25%, subject to certain transitional or onboarding exceptions.

MICs can only invest in mortgages secured by real property located in Canada. At least 50% of a MIC’s assets must be invested in Canadian residential mortgages, cash, or deposits with Canadian financial institutions.

Investors in a MIC earn money through dividends. Some MICs issue preferred shares which act like bonds by providing a fixed dividend rate. Income earned by MICs is generally not subject to corporate income tax as long as the MIC distributes 100% of its taxable income. Any undistributed taxable income is subject to corporate tax. This allows MICs to act as a flow-through entity. MICs must distribute at least 100% of their taxable income to maintain MIC status.

If a corporation breaches any of these requirements, the corporation will lose their MIC status. This will result in the corporation’s income being taxed, and a lower return for investors in the MIC.

Most Mortgage Investment Corporations focus on higher‑yield mortgages with relatively short terms, often structured as short‑duration loans such as bridge, construction, or non‑prime mortgages. These shorter terms allow MICs to regularly reprice their portfolios as market conditions change and to manage credit exposure more actively.

Although yields in private mortgage portfolios are typically higher than those offered by traditional bank mortgages, this does not mean MICs necessarily take on excessive risk. Many MICs emphasize conservative asset‑based lending, advancing funds primarily to borrowers with substantial equity in their properties. As a result, MIC portfolios are often concentrated in mortgages with moderate loan‑to‑value ratios, helping to mitigate downside risk.

In private mortgage lending, the borrower’s total borrowing cost generally includes both the stated mortgage interest rate and lender or origination fees charged at inception. MICs retain these origination fees as part of their income, in addition to interest earned over the life of the mortgage, which can contribute meaningfully to overall portfolio returns.

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For securities compliance, introductions to the Morrison's Funds are to be conducted exclusively by registered dealers. Morrison Financial has retained Belco Private Capital Inc. as its exempt market dealer. All new or additional investments must be conducted through a registered dealing representative of an exempt market dealer.

Founded in 1991 in Calgary, Alberta, Alta West Mortgage Capital Corporation (Alta West Capital) is a Canadian alternative mortgage lender and mortgage investment manager with 35 years of experience across multiple housing and economic cycles. The firm specialises in originating and managing short-term residential mortgages across Canada, with an emphasis on residential mortgage investing and income generation. Its operations have recently been expanded through the acquisition of Premiere Home Mortgage, a legacy alternative lender based in Kelowna, BC.

Alta West Capital provides investor access to residential mortgage portfolios through Mortgage Investment Corporations (MICs). Its lending activities are concentrated in major urban markets in Alberta, British Columbia, and Ontario. Underwriting is driven by disciplined assessment of property equity, location, and marketability. The firm's approach prioritises risk management and the preservation of investor capital over headline yield, and largely avoids speculative lending categories such as land development in favour of residential real estate.

Investment Products

Alta West Capital manages three MIC products, with a combined AUM of approximately $350 million:

AWM Diversified MIC (est. 2004)

First Place MIC (est. 2007)

Premiere Canadian Mortgage Corp. (est. 1996) and Classic Mortgage Corporation (est. 2003) merged on September 1, 2024, with PCMC continuing as the successor entity.

Investor Considerations

All three MICs distribute interest income sourced primarily from mortgage interest and related fees. Depending on the MIC chosen, income can be distributed monthly or annually. Investors may receive distributions in cash or reinvest them, subject to fund terms. Alta West Capital primarily lends to borrowers who may not meet traditional bank lending standards, with lending decisions that are based on underwriting parameters oriented toward short-term, transitional mortgage solutions. As with all mortgage investments, returns are dependent on portfolio performance, credit conditions, and market factors.

Alta West Capital is registered as an Exempt Market Dealer (“EMD”), Restricted Portfolio Manager (“RPM”), and Investment Fund Manager (“IFM”) in the province of Alberta. The firm is also registered in the provinces of British Columbia, Ontario, Manitoba, Saskatchewan, and Yukon as an EMD. Past performance is no guarantee of future results. Actual performance will vary. Units of the MICs are not available for public distribution and may only be purchased by qualified investors. For the most current performance data and official materials, visit awcapital.ca.

Morrison Financial has been a Canadian private lender since 1987, with $1.6B+ in financing completions. The Morrison Financial Senior and Junior Mortgage Income Funds are structured as Mutual Fund Trusts rather than Mortgage Investment Corporations. This alternate structure allows the firm to focus on what it specializes: financing the development and construction of new housing across Ontario. The Senior Fund targets 6.50-7.50% and the Junior Fund targets 8.50%-9.50%.

Disclaimer: This information is for informational purposes only and does not constitute an offer to sell securities. Introductions are permitted exclusively through registered exempt market dealers. Morrison Financial has retained Belco Private Capital Inc. as its exempt market dealer. Target returns are not guaranteed. Past performance is not indicative of future results.

Atrium Mortgage Investment Corporation (TSX: AI) is a MIC founded in 2001 and publicly listed since 2012. It is managed by Canadian Mortgage Capital Corporation (CMCC), a mortgage brokerage and advisory firm established in 1994. Atrium describes itself as a non-bank lender focused on filling the financing gap left by traditional institutions, offering customized mortgage solutions to borrowers in major Canadian urban centres.

As of December 31, 2025, Atrium's mortgage portfolio totalled $917.1 million across 326 loans, with an average mortgage size of $2.8 million and a weighted average LTV of 61.4%. The portfolio is heavily concentrated in the GTA (86.6%), with the remainder split between non-GTA Ontario (7.3%) and British Columbia (6.1%). By property type, 71.3% of loans are residential and 28.7% commercial, with 95.2% in first mortgage position. The weighted average mortgage yield was 8.98%, and the weighted average term remaining was 11.8 months. Atrium targets a maximum portfolio LTV of 65% and has maintained this discipline consistently since going public.

For FY2025, Atrium reported net income of $49.1 million ($1.03 per share) on revenues of $85.1 million. The regular monthly dividend is $0.0775 per share ($0.93 annualized), with an additional special dividend of $0.10 declared for 2025, bringing total dividends to $1.03 per share and a total yield of 8.89%. Atrium has paid uninterrupted dividends since inception.

MCAN Mortgage Corporation, which does business as MCAN Financial Group, is listed on the TSX under the ticker symbol TSX: MKP. MCAN is the largest MIC in Canada and the only federally regulated MIC that issues term deposits eligible for Canada Deposit Insurance Corporation (CDIC) deposit insurance. This federally regulated status, under the Trust and Loan Companies Act and being overseen by OSFI, distinguishes MCAN from most other MICs and gives it access to low-cost, CDIC-insured term deposits as a primary funding source.

MCAN is uniquely structured as a flow-through Mortgage Investment Corporation, meaning it is not taxed at the corporate level and distributes all its taxable earnings annually. This structure makes it attractive to income-seeking investors, as dividends are passed through to shareholders and taxed in their hands as interest income.

MCAN operates through three business divisions:

• MCAN Home handles single-family residential mortgage lending, working exclusively through accredited mortgage brokers to offer both insured and uninsured mortgage solutions across Canada. This line of business operates through MCAN's wholly owned subsidiary, MCAN Home Mortgage Corporation (formerly XMC Mortgage Corporation).
• MCAN Capital focuses on construction and commercial lending, REIT investing, and private investment funds. It also holds an ownership stake in MCAP, Canada's largest independent mortgage finance company (MFC), which serves many institutional investors and over 400,000 homeowners.
• MCAN Wealth offers CDIC-insured GICs and term deposits to retail and institutional investors, providing MCAN with a cost-effective funding base for its mortgage portfolio.

On the portfolio side, MCAN has been growing rapidly. Total assets reached $6.5 billion at February 28, 2026: total residential mortgage assets reached $5.9 billion by February 2026, including $2.6 billion in uninsured residential mortgages and $3.3 billion in insured residential mortgages. Assets under management (including its own assets) rose 30% year-over-year to $7.8 billion, with record residential mortgage originations helping offset margin pressure from declining interest rates.

Net income for 2025 was $74.9 million, with return on equity at 12.07% and book value per share of $15.93. The Board declared a Q1 2026 regular cash dividend of $0.43 per share, a 5% increase from the prior quarter.

Timbercreek Financial (TSX: TF) is a non-bank lender and one of Canada's largest publicly traded MICs, focused on providing short-term, floating-rate mortgage financing for commercial real estate. Unlike MCAN, which is primarily a residential single-family lender, Timbercreek occupies a distinct niche: bridging and transitional loans on income-producing commercial properties where conventional bank financing is unavailable or too slow.

As at December 31, 2025, Timbercreek held $1.90 billion in mortgage investments (including mortgage syndications), with total assets of $1.98 billion. The portfolio consisted of 122 individual mortgage investments with an average size of $15.6 million, and approximately two-thirds of business came from repeat borrowers. The portfolio is concentrated in multi-residential properties (62.9%), with retail (11.4%), industrial (10.8%), and improved and unimproved land making up most of the remainder. Geographically, Ontario accounts for 34.1% of the portfolio, followed by Quebec (26.8%), British Columbia (20.9%), and Alberta (14.7%). Roughly 96% of the portfolio is invested in urban markets.

A defining feature of Timbercreek's portfolio is its floating-rate structure: approximately 89% of loans carry floating rates, which provides investors with built-in protection against rising interest rates. The portfolio is also conservatively underwritten, with around 83.7% of properties classified as cash-flowing. First mortgages make up the overwhelming majority of the portfolio.

For 2025, Timbercreek reported net investment income of $104.9 million and distributable income of $59.1 million ($0.71 per share), with a payout ratio of 96.7% on distributable income. The company maintained its quarterly dividend of $0.17 per share throughout the year ($0.69 annualized), representing a dividend yield of approximately 9.5%. Net income for the full year was $34.5 million, reduced primarily by $17.9 million in expected credit loss provisions reflecting ongoing caution around staged commercial real estate loans, a theme across the CRE lending sector in 2024–2025.

Timbercreek is externally managed by Timbercreek Capital, which also manages a broader suite of private real estate funds.

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FSRA Licenses: Administrator #13679 | Brokerage #13753

Investing in a mortgage investment corporation has some benefits compared to other methods of private mortgage investing, but there are also some downsides.

Some benefits of a MIC include:

• Mortgage investments are managed for you by professionals.
• No need to personally evict tenants
• MICs typically pay regular distributions, which depend on the MIC’s performance and policies.
• A large pool of mortgages spreads out risk.
• A pool of mortgages also mean that overlapping terms will even out returns, with less funds sitting idle.

Some downsides of a MIC include:

• MICs have operating and administrative expenses. These fees are passed down to investors in the form of a smaller dividend compared to interest received.
• Lack of control. As an investor, you do not directly choose which properties to lend money to.

Besides MICs, another way to invest in private mortgages is through syndicated mortgages. A syndicated mortgage involves a group of private investors collectively providing a mortgage to a single borrower. Each investor contributes a portion of the total loan amount and receives a return proportional to their contribution.

In most provinces, syndicated mortgages must be arranged through a licensed mortgage broker, the broker handles the regulatory requirements around sourcing and presenting the investment opportunity to investors.

Compared to a MIC, a syndicated mortgage involves fewer layers of fees and overhead, which means investors can potentially keep more of the interest the borrower pays. You also have direct visibility into exactly which mortgage you are funding, giving you more control over who you lend to.

The tradeoff is concentration risk. Because you are lending to a single borrower, a default can result in a significant loss of your invested capital. During any foreclosure process, you will also stop earning interest income for the duration. And once a mortgage is repaid, there will likely be some downtime before your capital is deployed into a new loan, which can reduce your effective annual returns.

A lesser-known way to invest in private mortgages is through an arm's length mortgage. The term "arm's length" simply refers to the fact that the lender and borrower must be unrelated. You can fund an arm's length mortgage with personal savings or through a self-directed registered account such as an RRSP, TFSA, or RRIF.

The process typically works through a mortgage broker, who connects lenders with borrowers. Once a borrower is found and both parties agree on the rate and terms, a lawyer registers the mortgage against the property and handles the required documentation. A trust company then administers the mortgage on an ongoing basis — collecting payments, holding security, and managing paperwork — for a fee.

Using a registered account is the most popular approach because interest income flows into the account, sheltered from tax. Outside of a registered account, interest income is simply taxable in the year it is received, like any other investment income.

As with syndicated mortgages, the key risk is concentration — you are lending against a single property, and a default will disrupt your interest income and potentially your principal until the foreclosure or power-of-sale process is resolved.

Olympia Trust Company offers arm's length mortgage administration services, acting as trustee for the lender's account across a range of mortgage types — from smaller loans between individuals to larger syndicated mortgages.