Equimor Mortgage Investment Corporation (EMIC)

EMIC is a “mortgage investment corporation” as this term is defined by the Income Tax Act, Canada. It is fully managed and administered by us. It is effectively a “pool of mortgages” that “flows through” net interest earned each month to the holders of its shares. Expenses are minimal as it has no employees and pays no rent. We are paid a management fee of one eighth of one percent of the value of funds under management per month to take care of all matters associated with the administration of the fund. It is the least risky and easiest way to invest in mortgages for the average investor. It holds primarily residential mortgages and provides a stable and attractive yield.

By investing in a pool, you reduce the risk of holding mortgages substantially. If any one mortgage goes into default, it has minimal effect on your return as you continue to receive your pro-rata share of interest generated by the dozens of other mortgages in the portfolio. Because most of the mortgages are registered against owner occupied homes, the owners almost always make up any missed payments because if they don’t they will lose their home. However if a default occurs, we are of course in a secured position against the home. In addition, we have been taking 10% of the interest earned each month since inception into a “loan loss reserve account”. These funds provide a “cushion” to absorb any loan losses in the future and thus provide additional protection for the value of each individual’s investment.

As an investor, you receive Special Shares of EMIC when you invest. These shares are eligible investments for RRSP’s in Canada. Holding these shares in your RRSP is very efficient from a tax point of view because a MIC pays no corporate income tax. Given income received in your RRSP is shielded from tax, you effectively receive 100% of your entitlement to the income earned by EMIC tax free until you withdraw it. If you reinvest your dividend each month, you can compound your return on a monthly basis for as long as you hold the shares without any transactions costs.

The fund is currently earning a net return for investors of approximately 10% on an annualized basis.

Subscription is by Offering Memorandum only, which can be downloaded by visiting www.equimormic.com.  If you would like one of our representatives to come to your home to review this investment opportunity and answer your questions directly, please call 905-568-1957 or send us an email.