Monthly Income. Secured
by Property.

A Mortgage Investment Corporation (MIC) is a Canadian investment structure that pools funds from many investors and lends them out as mortgages secured by real estate.

Instead of funding one mortgage on your own, you own shares in a diversified pool of mortgages. The interest borrowers pay on those mortgages is collected by the MIC and, after fees and expenses, distributed to investors as income.

For many people, MICs are a practical way to participate in Canadian mortgage investments without having to find borrowers, underwrite loans, or manage payments yourself.

Yes. “AP Capital Mortgage Fund” and “AP Capital MIC” refer to the same investment.

• AP Capital MIC is the legal structure of the fund — a Mortgage Investment Corporation under Canadian rules.
• AP Capital Mortgage Fund is the plain-language name we use to refer to the investment as a whole.

So when you see “AP Capital MIC” or “AP Capital Mortgage Fund,” you can think of them as the same Canadian mortgage investment, just described in different ways.

AP Capital MIC is generally suited to everyday Canadian investors who want:

• Regular monthly income
• An investment backed by real estate
• Less day-to-day price movement than the stock market
• Exposure to Canadian mortgage investments in Western Canada

Many of our investors are approaching, or in retirement, or simply want to diversify a portion of their portfolio. Whether it’s right for you depends on your goals, time horizon, and risk tolerance. A licensed financial advisor can help you decide.

All mortgages in the fund are secured by real property. If a borrower falls behind:

• We first work with them to bring payments back on track.
• If that’s not possible, we have legal remedies, including foreclosure, to recover the outstanding amount.

We use conservative loan-to-value ratios, which means there is typically a sizeable equity cushion beneath each mortgage. This helps protect investor capital if a property ultimately has to be sold.

That said, mortgage lending always involves risk. There is no guarantee that every dollar will be recovered in every situation, and it is possible to lose money in Canadian mortgage investments.

AP Capital focuses on short-term residential mortgages across Western Canada, primarily in:

• British Columbia
• Alberta

We lend against:

• Single-family homes
• Urban serviced lots
• Townhomes and condos

We do not focus on large speculative developments or big commercial projects. The goal is to lend against real homes in markets we know well, with active resale activity and solid underlying fundamentals.

Returns come mainly from the interest borrowers pay on their mortgages:

• Borrowers make interest payments on their mortgages.
• AP Capital collects that interest.
• After expenses and management fees, the remaining income is paid out to investors as monthly distributions.

Since 2007, AP Capital has delivered a consistent track record of monthly distributions and positive long-term results, with no loss of investor principal to date.

No. Neither your income nor your original investment is guaranteed.

AP Capital has a long history of paying monthly distributions, but the amount of income can increase, decrease, or be suspended depending on how the mortgage portfolio performs and what’s happening in the real estate and interest-rate environment.

Distributions are paid monthly. When you invest, you can choose:

• Cash distributions: Your income is paid to your account each month.
• DRIP (Dividend Reinvestment Plan): Your monthly income is automatically used to buy more shares in AP Capital MIC, helping your investment grow over time.

Many investors looking for growth choose DRIP to benefit from compounding. Those who want current income, such as retirees, often choose to receive cash.

Income from AP Capital MIC is taxed as interest income. You can hold the investment in:

• RRSP / RRIF / LIRA: Taxes are deferred until you withdraw the funds.
• TFSA: Income is generally tax-free, making this a popular way to hold Canadian mortgage investments.
• Non-registered accounts: You’ll receive a T5 slip, and the income is taxed at your marginal tax rate.

A tax professional or your financial advisor can show you how best to hold the investment for your situation.

AP Capital offers monthly redemption opportunities, subject to conditions and notice periods. This makes the investment more liquid than many private investments, but not as liquid as a bank account or a stock you can sell instantly.

Mortgage investing works best with a longer-term outlook. Many investors think in terms of three to five years or more to let the portfolio work through different market conditions. If you expect to need your funds in the very short term, this type of investment may not be the best fit.

Yes. AP Capital MIC is offered through the exempt market, which means you invest through a licensed investment advisor or exempt market dealer.

• If you already have an advisor, you can ask whether they can offer exempt market products like AP Capital MIC.
• If you don’t have an advisor, or you’re not sure, our team can help direct you to someone who is licensed to discuss Canadian mortgage investments.

Both Class B and Class F shares invest in the same pool of mortgages and follow the same strategy. The difference is in how advisor compensation is handled:

• Class B shares: Typically used with commission-based advisors.
• Class F shares: Typically used with fee-based advisory platforms, where you pay your advisor a separate fee.

Your advisor will recommend the share class that matches how you work together.

The minimum initial investment is $10,000, with a share price of $100 per share.

Additional investments can be made in smaller increments through your advisor, allowing many everyday Canadians to participate in Canadian mortgage investments without committing a very large amount all at once.

Getting started is straightforward:

• Speak with your financial advisor. Ask if AP Capital MIC is suitable for you and whether they are licensed to offer it.
• Complete the subscription documents. Your advisor or exempt market dealer will guide you through the paperwork.
• Choose your accounts and distribution option. Decide whether to use RRSP, TFSA, RRIF, or non-registered accounts, and whether you want cash distributions or DRIP.
• Fund your investment. Once approved and funded, your money is deployed into AP Capital’s diversified portfolio of Canadian mortgages, and you become eligible for monthly distributions.

For full details, including all risks and terms, please review the current Offering Memorandum and discuss any questions with your licensed advisor.