Solutions for borrowers, brokers and investors

Investment Strategy

Advanced MIC provides reports on the composition and performance of its portfolio to the board of directors at least monthly and to preferred shareholders at least quarterly.

Unless otherwise noted, all data is verified as of July 20, 2018:

  • All AMIC mortgages are on residential properties.
  • The weighted average LTV of the portfolio is 74.72%.
  • First mortgages comprise 57.79% of the portfolio; second mortgages make up 42.21% of the portfolio (by dollar value).
  • The weighted average term to maturity is 167.66 days.
  • AMIC has current mortgages outstanding to 49 borrowers via mortgages on 51 properties.
  • All mortgages are in the greater Ottawa real estate market and in the province of Ontario. 7 of the 51 properties mortgaged are not inside of the city limits of Ottawa.
  • The simple average loan amount is $137,268.
  • The simple average property value is $510,488.
  • All properties have been fully appraised by appraisers with the AACI or CRA desgination. All appraisals use an as-is value.
  • AMIC strives to limit portfolio exposure to a single borrower or group of related borrowers to no more than 10% of the total mortgage portfolio value. As of the reporting date, AMIC has exposure to a single borrower at 10.78% of the portfolio. This exposure will be reduced once pending fundings are registered.
  • AMIC has not employed leverage (debt) to fund any of the mortgages in the portfolio. All AMIC mortgages have been funded with preferred share capital. No AMIC mortgages have been assigned to or otherwise pledged to secure debt from any third party.
  • No mortgages have been syndicated with or advanced to individuals, companies or entities that are related to the MIC's management by virtue of common ownership and control. No mortgages have been syndicated at all. AMIC owns 100% of the mortgages that it has registered.
  • The AMIC portfolio only contains mortgages. AMIC does not own or hold shares in other or related or connected companies.
  • All mortgages in the portfolio were originated, underwritten and funded by AMIC and its manager Advanced Alternative Lending and were not bought from, assigned by or otherwise acquired from any other entities.

The composition of mortgage portfolio can change daily due to advances, discharges and renewals. Please contact us if you require additional or more current information.

 


 

AMIC's strategy is to focus on lending in Ottawa and surrounding areas of Eastern Ontario. It should be noted that this regional focus does not provide diversification to AMIC's portfolio. Current and potential AMIC shareholders should review this regional concentration as a risk factor and in context with any other investments with a similar geographic profile.

Data as the reference date in the chart. Ask an ACC dealing representative or an AMIC staff member for updated portfolio information.


 

From the AMIC Offering Memorandum:

AMIC's business objective is to obtain a secure stream of income by optimizing its mortgage portfolio within the MIC criteria prescribed by the Tax Act. AMIC's primary business is earning income through making residential and commercial loans to borrowers.

There is an established need for real estate mortgage financing that is not readily provided by banks, trust companies, credit unions and other traditional lenders.

Short term mortgage financing is a continuing need of individuals, builders and real estate developers. As a result of their needs for flexibility and prompt approvals, they often require the services of private lenders and organizations such as AMIC.

The rate of return AMIC earns from its mortgage loans fluctuates with prevailing market demand for short term mortgage financing. In some cases, AMIC's mortgage loans may not meet the financing criteria for conventional mortgages from institutional sources, and as a result, these loans generally earn a higher rate of return than that normally attainable from conventional mortgage loans. AMIC attempts to minimize risk by being prudent in both its credit decisions and in assessing the value of the underlying real property offered as security.

The near prime market segments of the Canadian lending industry in which Advanced Alternative Lending (the MIC manager) operates are under serviced by the large financial institutions in Canada. The near prime market segments differ from prime market segments because of lower borrower equity, lower borrower credit scores, lower presales/ pre-leasing and size of the loan.

These segments are populated by small to mid-sized borrowers in smaller, non-urban geographic markets, who require custom tailored financing solutions to meet their capital requirements.

  • The Corporation maintains a mix of mortgage types in its portfolio including builder mortgages, first and second mortgages, development and construction mortgages and term financing mortgages on income producing properties.
  • A typical loan size ranges from $25,000 to $2,500,000 depending on the type of real estate and the priority of the mortgage.
  • AMIC has established a policy that limits its credit exposure to any one borrower to less than 10% of the total value of the portfolio.