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Canada's best non-bank lender

AP Capital MIC

AP 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 1,000 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:

  1. To preserve capital by acquiring and maintaining a diversified, conservative portfolio of primarily residential mortgage loans.
  2. Provide an annual distribution/yield of 6.05% 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 Summary

Fund TypeMortgage Investment Corporation (MIC)
Lendable Funds$178 MM (December 2021)
Fund Inception DateIncorporated March 2007
Monthly Distributions6.05% per annum (not guaranteed) Cash or DRIP (dividend reinvestment) 144 consecutive months of distributions.
Share Price$100.00 per Class B Common Share (EMD)
$100.00 per Class F Common Share (IIROC – no load)
Minimum Investment$10,000
DividendsTaxed as interest income. T5 Tax Slips provided to Open/Cash Investors.
Credit / Leverage$60MM (RBC - Royal Bank)
Loan Asset ClassResidential Mortgages. Primarily single detached homes in urban Western Canadian cities (populations >75K) to arm’s length borrowers.
Redemption RightsMonthly redemption available (conditions may apply).
Redeemable on demand (with 60 days notice before year end). See Offering Memorandum for details.
Management Fee1.50% per annum of mortgages under management.
Registered FundsRRSPs, RRIFs, RESPs, LIRA and TFSA
Monthly Fast FactsMonthly Fast Facts
Mortgages advanced since fund's inception1,000+
Shareholder Yield (audited)2021: 5.65%
2020: 6.80%
2019: 7.15%
2018: 7.09%
2017: 7.03%
2016: 7.19%

3-year average: 6.54%
10-year average: 7.95%

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.

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).

The Steps:

  1. Review the OM and executive summary
  2. Fill out the Subscriptions Agreement and Risk acknowledgement forms
  3. Fill out the Pre Authorization forms
  4. 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.

  5. Please send documents to:
    AP Capital MIC
    555 Burrard Street, Unit 1795
    Vancouver, BC V7X 1M9
    Attention: Investor Relations
    investment@apcapital.ca
    fax: 604.608.9070 | Phone: 778.328.7401