AP Capital MIC
AP Capital Mortgage Investment Corporation (MIC) started in 2007 and is a mortgage lender in Western Canada. The firm advances short-term mortgages to owners of primarily single detached homes in urban markets of primarily BC and Alberta. Borrowers are homeowners or home purchasers who require short-term funds and often do not fit with conventional bank underwriting. Equity in each borrower’s home is what protects the fund’s capital as the target loan to value is 70%; leaving 30% equity to protect AP in the event of borrower default. More than 1,900 mortgages have been advanced since the fund launched. Visit the Fast Facts for current mortgage portfolio details. Mortgages are sourced through mortgage brokers at interest rates typically five percent above bank prime rate. As a Western Canadian alternative mortgage fund, AP Capital provides an investment option for Canadians looking for alternatives to traditional investments.
Registered funds (e.g. RRSP, TFSA, LIRA, RESP) as well as open or cash funds can be invested.
The investment objectives of AP Capital MIC are:
- To preserve capital by acquiring and maintaining a diversified, conservative portfolio of primarily residential mortgage loans.
- Provide an annual distribution/yield of 8% and greater; with monthly distributions to shareholders in the form of cash from net income, or shares through monthly DRIP (dividend reinvestment).
AP Capital maintains affiliations and membership with associations that add to the quality of its business. The Company is proud to be a member of the British Columbia MIC Managers Association (BCMMA) and the Canadian Association of Accredited Mortgage Professionals (CAAMP).
|Fund Type||Mortgage Investment Corporation (MIC)|
|Mortgages Under Administration||$229.5MM CAD (June 2023)|
|Fund Inception Date||Incorporated March 2007|
|Monthly Dividend Rate||7.75% per annum Cash or DRIP (dividend reinvestment)
160 consecutive months of dividends paid. Monthly distributions are not guaranteed.
|Share Price||$100.00 per Class B Common Share (available via EMD)
$100.00 per Class F Common Share (available via Fundserv QWE834– no load)
$100.00 per Class I Common Share Contact Us
|Minimum Investment||$10,000 Class B
$10,000 Class F
$15,000.000 Class I
|Dividends||Taxed as interest income. T5 Tax Slips provided to Open/Cash Investors.|
|Credit / Leverage||$100MM CAD available|
|Loan Asset Class||Residential Mortgages. Primarily single detached homes in urban Western Canadian cities (populations >75K) to arm’s length borrowers.|
|Redemption Rights||Monthly redemption is available (conditions may apply).
See Offering Memorandum for details, including redeemable on demand (with 60 days notice before year end).
|Management Fee||1.50% per annum of mortgages under administration (MUA).|
|Registered Funds||RRSPs, RRIFs, RESPs, LIRA and TFSA|
|Fund Facts (updated monthly)||Monthly Fast Facts|
|Mortgages advanced since fund's inception||1,900+ (over $775MM)|
|Shareholder Yield||Class B (available via EMD)
2023: 7.75% (monthly distribution rate)
2022: 6.34% (audited)
2021: 5.68% (audited)
2020: 6.80% (audited)
2019: 7.00% (audited)
2018: 7.09% (audited)
3-year average: 6.27%
10-year average: 7.61%
Class F (available via Fundserv QWE834 – no load)
2023: 7.75% (monthly distribution rate)
2022: 6.87% (audited)
2021: 6.23% (audited)
2020: 7.33% (audited)
2019: 7.71% (audited)
2018: 7.65% (audited)
3-year average: 6.81%
Class F shares launched 2018
Class I (Contact Us)
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
- Review the OM and executive summary
- Fill out the Subscriptions Agreement and Risk acknowledgement forms
- Fill out the Pre Authorization forms
- For registered investment: AP Capital accepts Registered funds from numerous trustees. Please contact us for details on forms required for account creation and fund transfers.
- Please send documents to:
AP Capital MIC
555 Burrard Street, Unit 1795
Vancouver, BC V7X 1M9
Attention: Investor Relations
fax: 604.608.9070 | Phone: 778.328.7401