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Invest in Mortgages with Amur Capital  

Since 1984, Amur Capital has enabled Canadian investors to unlock the full potential of real estate and earn stable, robust returns with mortgage investing. 

Ready to explore mortgage investing? Here’s what you need to know about this investment vehicle and how Amur Capital’s tailored offerings can help you achieve your financial goals. 

Introduction to mortgage investing

Simply put, mortgage investing refers to lending money to individuals or entities in exchange for interest payments over time, with the mortgage acting as collateral.  

Mortgage investing can be done directly by funding individual mortgages or indirectly through investment vehicles like mortgage investment corporations (MICs). With MICs, investors’ funds are lumped together and invested in a pool of mortgages. The managing entity then earns income from the mortgage payments, and a part of the income is passed on to investors as dividends. 

Amur Capital offers Canadian investors a more straightforward approach to investing in mortgages through mortgage investment corporations (MICs). Each MIC has its dedicated fund managers who manage and curate the portfolio to include different mortgage types across urban locations in Canada, making your investment not just primed for steady growth but also resilient in any market conditions. 

A graphic that describes how Mortgage Investment Corporations work

Here’s a quick rundown of the mortgage investment process at Amur Capital:  

  1. Investors deposit and invest in a pooled fund with other investors’ capital. By investing money, you become a shareholder, with each share representing a percentage of the company.
  2. Amur Capital’s pooled funds receive a consistent stream of proprietary and high-quality mortgage deals from Amur Financial Group’s mortgage origination entities, Alpine Credits and Sequence Capital.
  3. Borrowers pay fees, interest, and principal to the Mortgage Investment Corporation (MIC).
  4. Investors proportionately receive 100% of the net income (after all expenses and fees) from the mortgages in the form of monthly dividends. They can withdraw their dividends as cash or reinvest into the fund, creating an alternative long-term fixed-income investment.

What is a mortgage fund?

A mortgage fund, also known as a mortgage investment fund, is a type of investment product that invests in mortgages. With a mortgage fund, investors can diversify their investment holdings and gain exposure to the real estate market without buying or managing a property.  

This diversity of investment in the real estate market across Canada. At Amur Capital, this risk is further reduced by professional fund managers from each MIC utilizing their underwriting expertise to find the best mortgage investments that deliver the desired risk-reward trade-off for the mortgage fund.  

As mentioned, investors receive dividends based on the profits earned by the fund. Which can be reinvested back into the funds for a consistent income stream at higher return rates than a bank savings account 

Mortgage Selection and Administration

An investment in Amur Capital’s MIC fund offerings is secured by mortgages placed on residential properties. Our origination entities include experienced underwriters in the loan process, employing a rigorous approval process to ensure high-quality mortgages and, more importantly, reliable borrowers.

Distributing Dividends

The Income Tax Act (Section 130.1) governs and details how MICs should distribute dividends to their shareholders. According to the provision, a MIC must pay its shareholders 100% of its annual net income before taxes. The dividend is then paid to investors regularly, usually monthly or quarterly.   

At Amur Capital, investing in any of the funds entitles the investor to an equivalent number of shares in the MIC. This means that for every dollar invested, the investor receives 1 preferred share. Each preferred share represents a beneficial interest in the profits of the MICs, comprising of monthly dividends paid in cash or additional shares in the MICs. 

Investors earn a proportionate share of the MIC’s income based on the total number of preferred shares they hold. The dividend or distribution amount is determined by the Board quarterly with an annual top-up to the distribution available. 

For example, Amur Capital Income Fund (ACIF), one of the funds under our management, has had an average rate of return of 9.82% over the past five years. If the fund generates a net income (after deducting the MIC expenses) of $40 million, it will be distributed based on each investor’s proportionate share.

Amur Capital as an Exempt Market Dealer

Exempt Market Dealers (EMDs) sell exempt market securities or investments exempt from prospectus requirements set by the Canadian Securities Administrators (CSA). While EMDs operate in all provinces and territories of Canada, they do not have to register with the CSA.  

With Amur Capital as an Exempt Market Dealer, investors can access a wider variety of investments, including alternative investment opportunities like mortgages that are not typically available in the public market.

Asset Allocation

Our MICs maintain a selection of mortgage portfolios primarily on residential mortgages and can invest in commercial mortgages. Depending on suitability, investors can choose from three funds according to their risk tolerance: Amur Capital Conservative Income Fund (ACCIF), Amur Capital Income Fund (ACIF), and Amur Capital High Yield Fund (ACHYF).

Target annual yield: 9.00%

Focus: Low LTV; residential 1st mortgages; 47% average LTV

Fund Inception: 2009

Minimum Investment: $25,000

Most Recent Return: 10.86%*

5-Year Average Return: 7.05%

Eligibility: Eligible for all registered plans

Investor profile: Conservative

* Unaudited annualized quarterly return as of March 31st 2024; ** Past performance may not be indicative of future results.

Target annual yield: 11.00%

Focus: Mix of residential 1st and 2nd mortgages; 53% average LTV

Fund Inception: 1984

Minimum Investment: $25,000

Most Recent Return: 12.23%*

5-Year Average Return: 9.82%

Eligibility: Eligible for all registered plans

Investor profile: Moderate

* Unaudited annualized quarterly return as of March 31st 2024; ** Past performance may not be indicative of future results.

Target annual yield: 13.00%

Focus: Higher yielding smaller mortgages; 66% average LTV

Fund Inception: 2017

Minimum Investment: $25,000

Most Recent Return: 14.03%*

5-Year Average Return: 13.69%

Eligibility: Eligible for all registered plans

Investor profile: Aggressive

* Audited annualized return as of December 31st 2023; ** Past performance may not be indicative of future results.

Regardless of which fund you invest in, the MIC distributes 100% of its profits to the shareholders which is taxed as interest income at the investor level. This avoids double taxation prevalent in other investments while boosting investment returns. Hence, MICs are considered flow-through investments.

Acif vs tsx composite index update

Get started with Amur Capital  

Amur Capital provides a simpler approach to mortgage investing. With access to multiple funds that can earn a consistent annual return and a team of experts at each MIC fund identifying high-quality mortgage opportunities tailored to your investment goals, Amur Capital offers a unique opportunity to diversify your portfolio and generate passive income.

Attractive risk-return profile

Our proven track record of positive returns and consistent income stream with limited volatility is backed by a strong underwriting and investment policy. With a stringent approval process for its mortgage origination entities, Amur Capital’s funds maintain a selection of high-quality mortgages across Canada. 

While no investment is risk-free, Amur Capital’s MIC offerings minimize concentration risk by investing in various mortgage portfolios of different Loan-to-Value (LTV), mortgage size, and maturity composition. In addition, our mortgages are spread across thriving real estate locations, such as British Columbia, Ontario, and Alberta.

Favorable tax treatment

When invested through any registered plans, such as the Tax-Free Savings Account (TFSA), Registered Retirement Savings Plan (RRSP), and Registered Education Savings Plan (RESP), your investment returns may be tax-free or tax-deferred, depending on the account. 

No upfront commissions charged on the original investment

As an EMD, Amur Capital can take money directly from investors on behalf of the MICs, which means no upfront transaction fees or trailer fees. Hence, 100% of your capital goes to work immediately. 

Consistent stream of high-quality mortgages

With Amur Financial Group’s origination entities providing high-quality mortgage deals, Amur Capital’s funds enjoy a consistent stream of mortgages. 

Whether you’re looking for long-term stability or substantial growth, our team focuses on strategies that maximize your returns while mitigating risks. Say goodbye to the complexities of traditional investing and hello to the simplicity and profitability of mortgage investing with Amur Capital. 

Frequently Asked Questions 

Amur Capital Management Corporation is a registered Exempt Market Dealer (EMD) that acts as both the capital raising and investor relations arm of Amur Financial Group. Since 1984, Amur Capital’s mortgage fund offerings have provided Canadian investors with stable historical returns. 

Whether you are an investment advisory firm, portfolio manager, or an experienced self-investor, Amur Capital’s experience in the private capital markets will surely add value to your existing portfolio.  

To review our fund offerings or start investing with Amur Capital, you can speak with one of our dealing representatives to learn more about diversifying your portfolio.

Investment in our fund offerings is available to Alberta, British Columbia, Manitoba, Nova Scotia, and Saskatchewan residents.

When considering an exempt investment you should thoroughly review the offering documents (offering memorandum) and audited financial statements as a matter of your due diligence obligations.