The Permanent Mortgage Investment Corporation
Investment Opportunity Overview

Investment

A minimum investment of $25,000.00 will allow for participation in this exciting investment vehicle known as a Mortgage Investment Corporation (M.I.C.). We will be funding Non-Institutional Mortgages for borrowers who do not typically qualify under the parameters established by large financial institutions.

Investor Tax Benefits

Corporations which qualify as a MIC under the Income Tax Act are not subject to business income tax. This allows for all of the income minus operating expenses to flow directly to the investor. The funds paid to the investor are paid in the form of a dividend and is treated as such when the investor files their own income tax return. Investment can be made through a self-directed RRSP.

Security

A minimum of 95% of our pool of funds will be secured by mortgages on residential real estate.

Lending Area

Only properties within the boundaries of the Greater Toronto Area will be considered unless they are part of an existing pool of mortgages purchased from an institutional lender. If mortgages are purchased from an institutional lender the mortgages must be in good standing and with no delinquency within the past 6 months. In this case all mortgages must be within the boundaries of a major urban centre with a population of no less than 50,000 people.  Cottage, vacation and custom construction projects will be considered on an exception basis.

Maximum Loan to Value

Our fund will maintain a Loan To Value Ratio of no greater than 80%. We will lend up to 85% on an individual property provided that the overall fund ratio does not exceed 80%.

Rate of Return on Investment

THE RATE OF RETURN ON THIS INVESTMENT IS NOT GUARANTEED. Due to the nature of this business combined with the ever changing lending interest rates it is impossible to guarantee a rate of return. Our TARGET is to provide a rate of return of 9% or greater to our investor on an annualized basis. We anticipate lending the funds to our borrowers at a rate between 11% and 14%. We expect our average mortgage to carry a rate of 12%. Please note that these are only estimates and subject to change as market conditions dictate. 

Risk Mitigation Practices

Our goal is to provide as safe an investment vehicle as possible for our investor. Our vast lending experience coupled with our lending practices, audit procedures, advisory council support and guidance from our Board of Directors, places us in the unique position of being able to utilize all of these Risk Mitigation opportunities.

Management Team

The fund will be managed on a daily basis by Rick Moran who has 25+ years of industry experience. Past that our Advisory Council consists of several Senior Level Mortgage and Investment Industry people whose wealth of knowledge will be used to guide the company.

The Permanent Investment Corporation is the Manager of The Permanent Mortgage Investment Corporation. For more detailed information please refer to our Offering Memorandum and its supporting documentation or contact us at 1-905-824-3210.