Fund Summary

Investment Criteria

AP Capital MIC manages the entire mortgage process from origination to underwriting to mortgage management. AP Capital MIC follows two sets of conditions. Firstly the conditions set by the Tax Act that enables AP Capital MIC to qualify as a Mortgage Investment Corporation and secondly, the firm has set its own market-specific underwriting criteria to ensure a prudent approach that achieves  preservation of investor capital.

The fund has established certain policies respecting how it can advance mortgages; which include, but are not limited to, the following:

• The fund will primarily invest in residential mortgages in major urban areas in Western Canada such as Greater Vancouver, Edmonton and Calgary
• Target 1st position mortgages of 50% or greater of the fund’s capital
• Provide short-term mortgages in the portfolio; typically 12 months
• Target weighted average loan-to-value of the portfolio of 70%

Mortgage Approval Process

The due diligence procedure employed by AP Capital MIC has resulted in a strong track record of risk management. In addition to deal due diligence, the firm carefully monitors the mortgage portfolio, maintains active communication with borrowers, and follows strict enforcement procedures. Our due diligence and underwriting process focuses on a multitude of risk factors, including borrower profile, property value, and market analysis.

Who are these applicants, and why are they coming to AP Capital instead of securing a mortgage from a Canadian bank? Our underwriting team has seen a variety of applicant types over our 16 year history.  We have funded over 1,900 mortgages and have looked at over 8,000 applications. The first category of applicants is business-for-self. We often say, if a person in Canada has a tax planning session with their accountant, they may find it challenging to secure traditional bank financing and an AP mortgage might be their best option. The second category is those that otherwise could qualify with a bank lender, however, given time urgency, they come to AP. Mortgage brokers know that AP can fund bank-ready urgent applications in as little as 2 to 3 business days. The third category of applicant we refer to is investor-class. The business model of these applicants is based on developing a portfolio of real estate. They often do not show consistent taxable income year over year, leaving bank financing challenging. AP is able to leverage their real estate assets to provide well-secured loans. A fourth category includes a few different scenarios where second mortgages may be secured. These include applicants requiring debt consolidations or bridge financing solutions. Oftentimes, breaking or refinancing an existing fixed-rate bank mortgage may be cost-prohibitive when compared to securing an AP Capital second mortgage.

How to invest?

AP Capital MIC requires retail investors to invest through an Investment Dealer or Exempt Market Dealer (EMD).  Speak to your Financial Advisor or Contact Us to be introduced to one in your area.  Institutional investors and family offices are invited to speak to AP Capital. AP Capital MIC accepts new investors monthly (12 share issuances per year).

Fundserv code: QWE 834