AP Capital Mortgage Investment Corporation (or MIC) is a residential alternative non-bank mortgage lender. Our Vancouver (Canada) based team reviews mortgage applications submitted through independent mortgage brokers and assesses each on its own merit. Underwriters select only those mortgage applicants that we choose, and once funded, we own the mortgage on our fund’s balance sheet for its life. That life is often short as we provide short-term solutions to borrowers; offering solely 1-year term mortgages. As an alternative non-bank lender, our mortgage products are priced higher than banks; typically 4-5% higher than conventional bank financing.
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 often based on developing a portfolio of real estate. They commonly do not show consistent taxable income year over year, leaving bank financing challenging. AP is able to leverage the borrower’s 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.
Our underwriting team favours the single detached home as the primary form of security on mortgages that we advance. We also will consider multi-family, semi-attached homes (townhouses), condominiums, and bare land zoned residential. Our first priority is in the underwriting of the asset (the real estate) and secondarily on the borrower. From a geographic standpoint, we primarily lend in British Columbia’s Lower Mainland to Fraser Valley region (estimated population of 3+ million). We also consider urban markets outside of this region, including Greater Victoria, Nanaimo, Kelowna, Kamloops, urban Calgary, and urban Edmonton.
The underlying security is always the real estate and our team follows underwriting guidelines that include Loan-to-Value thresholds that help us manage against downside risk. By downside risk, we simply mean that if the borrower defaults and we are left to enforce the mortgage terms, we have an underlying asset that is worth more than our secured debt (the mortgage).
For more details about the specific composition of the fund today, visit Fund Facts (updated monthly).
We grow AP Capital by raising capital through financial firms and investment advisors. These firms and advisors introduce AP Capital as a private equity option. As an investment, AP focuses on delivering consistent yields to our nearly 1,400 Class B and Class F shareholders. Since AP Capital Mortgage Investment (MIC) was launched in 2007, our goal has been to provide access to institutional-grade investments typically not widely available to retail investors. Real estate-backed mortgage investments are becoming increasingly popular with financial firms, investment advisors, and the investing public, who are all seeking alternatives to traditional equity and fixed-income products.
At AP Capital, our objectives include:
- Access to investment products typically not widely available to individuals
- Mortgage portfolio diversification (multiple geographic locations across hundreds of mortgages)
- Avoidance of price volatility experienced in public markets
- Monthly distribution of dividends to all shareholders (in cash or in DRIP/shares)
Our proprietary product is a Mortgage Investment Company (AP Capital MIC). With our deep understanding of the Western Canadian markets, plus relationships across the mortgage broker networks, we meet the needs of investors who are seeking;
- Monthly income. Via direct deposit or share reinvestment (DRIP)
- Capital Preservation. Risk Mitigation through a diversified portfolio of residential mortgages.
- Security. Our funds are secured by mortgages secured on primarily residential real estate in Canada’s urban markets. We diversify our portfolios across several geographic markets in Western Canada.
- Liquidity. Flexible terms to purchase shares, and sell shares. Redeem investments with certain restrictions apply – See the Offering Memorandum for full details. Investments are not tied to the maturity date of individual mortgages in the fund.
All interested parties are invited to speak to their financial advisor or Contact Us and we’ll introduce you to one in your area.
- 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