Finding an investment that’s right for you and your goals can be a daunting, seemingly almost impossible task.
There are so many options, plans, philosophies and projections out there, but one investment option is leading the way with positivity, pleasing returns, and a solid foundation. It’s called private mortgage investing, and CMI Financial Group is offering it to clients as part of their wealth-building strategy through CMI Mortgage Investments in two distinct programs.
For high-net-worth investors looking to fund an entire mortgage transaction, the CMI Mortgage Investments Program offers a curated selection of mortgage investment opportunities tailored to each investor’s unique investment objectives and risk tolerance.
Every investor works with a dedicated Investment Account Manager, and CMI actively manages all mortgages for the duration of the investment. Depending on their goals, investors can earn anywhere from six to 16 per cent annually. The program is best suited to high-net-worth, accredited investors with liquid assets of at least $500,000 to $1,000,000.
Investors interested in a more diversified solution can invest through CMI MIC Funds, the company’s family of mortgage investment corporation (MIC) funds, which require a much lower minimum investment.
MIC funds are like mutual funds, but instead of stocks and bonds, the funds are made up of carefully selected, high-quality residential mortgages.
The funds produce regular income through the collection of interest and fees from borrowers.
CMI offers three funds – prime, balanced and high yield – each with a distinct risk/return profile, which are diversified across a range of factors including geographic region, mortgage type, duration, and loan-to-value.
“Private credit, particularly private mortgages, has emerged as a favoured choice among investors, including high-net-worth individuals and institutions,” says Chris Baker, vice president, Investment Sales at CMI. He explains the value of more traditional investment vehicles seen as portfolio stabilizers are being called into question.
“As a result, investors are tapping into alternative investments to generate higher returns, reduce volatility, and increase opportunities within their portfolios.”
This is where private mortgage investments enter in, with an average term of just 12 months, lower interest rate risk, and typically higher yields - six to 16 per cent - compared to longer-term, fixed income investments.
Since they are not directly linked to publicly traded markets, investment in private mortgages can boost your portfolio while reducing volatility. Plus, they are backed by property rather than the risks and responsibilities of actual property ownership, title transfer and changes in property market conditions.
Those are the benefits of investing in mortgages. Now, how do you determine who’s in the best position to deliver it to you?
“Not all private mortgage lenders are created equal,” Baker says. “Before investing in a mortgage program, investors must consider the lender’s reputation, track record, investment strategies, risk management and due diligence practices, and terms and restrictions.”
The best mortgage lenders also have a proven track record of successful mortgage placements.
CMI is such a lender and stands apart from its competitors for many reasons, including the benefit of a national footprint across Canada with a significant presence in Western Canada.
CMI also has a community of more than 12,000 broker partners that source high-quality mortgages in key markets across the country.
To date, it has funded more than $2.5 billion in mortgages, is one of Canada's largest private mortgage lending and investment firms and has nearly 20 years of experience in the mortgage industry that includes a reputation for transparency, integrity and excellence.
So, is private mortgage investing a potential fit for you?
“Overall, mortgage investing is suited to high net worth (HNW) and ultra-high net worth investors (UHNW) seeking alternatives to traditional fixed income investments that can generate higher returns while reducing volatility in their portfolios,” Baker says.
CMI Financial Group is a non-bank, financial services provider dedicated to helping investors achieve competitive fixed income returns for their investment portfolios by sourcing high quality mortgage investment solutions - backed by real estate - that match their investment objectives and risk tolerance. For more information, visit www.thecmigroup.ca
