An Inside Look at How Our Investment Program Works.
In an age of record-low interest rates and volatile market cycles, private mortgages can offer a stream of income with less risk than traditional assets like stocks. CMI Mortgage Investments educates investors on the mortgage investment process so they can make informed decisions on how to incorporate private mortgages into their investment portfolios.
With over $500 million in successful mortgage placements, CMI Mortgage Investments is one of Canada’s fastest-growing non-bank financial services providers. Our mortgage investment portfolio, including our industry-leading CMI MIC Funds, has been designed to provide investors with direct exposure to Canada’s residential mortgage market.
The quality of the management team you entrust with your investment is one of the most important considerations for any mortgage investor. At CMI, we deliver a uniquely personalized and high-touch investment experience through our expert team of Investment Account Managers (IMs), who act as a dedicated relationship manager and key point of contact for our whole mortgage investors. Our IMs work with accredited investors to understand their preferences and build a customized deal profile, which allows them to tailor investment opportunities to each investor’s specific needs. The IM presents opportunities that fit the investor’s profile, and the investor decides whether or not to proceed. The goal is to foster a long-term relationship with our loyal – and growing- investor base.
Our Investment Process
CMI’s mortgage investment process is rooted in robust due diligence. Our underwriters spend considerable time identifying investment opportunities that meet our rigorous lending standards. Our mortgage analysts then conduct a thorough review of each potential borrower to determine whether the opportunity aligns with our investment thesis, risk parameters and yield targets. Each loan goes through an extensive qualification process that evaluates a borrower’s personal circumstances, including income, assets and debt, as well as the details of the mortgaged property. The quality and location of the property are also reviewed before each loan is approved. In general, CMI targets mortgages in large urban centres with strong economic fundamentals and robust labour markets.
At CMI, the loan selection process goes through multiple due diligence steps to ensure that we have selected the right risk-reward ratio for our clients. These steps include:
- Initial review of loan submittals
- Commitment issuance
- Document collection, review, risk assessment, appraisal
- Final review
- Mortgage creation
- Final legal review
All mortgage deals are closed through our trusted network of law firms to ensure transparency and security in the lending process. All closing costs associated with the loan are paid for by the borrower, not the investor, which allows our investors to simply collect interest payments once the loan is approved and the funds are deployed. From that point forward, the entire investment portfolio is managed by CMI.
When you invest with CMI, your capital is immediately deployed to fund mortgages in prime locations across the country. Our program increases your access to more valuable mortgage investments over time, allowing you to generate passive income from your initial holdings. Registered funds can also invest in MICs through self-directed account managers that focus on MIC funds. We accomplish this goal by creating a portfolio that matches your capital profile and risk tolerance, diversifies your holdings and customizes your yield target, location preference and loan type.
CMI investors can earn anywhere between 5% and 15% annually on their investments, which is considerably higher than the average yield of traditional fixed-income securities. The invested capital is backed by the borrower’s property and monthly income is generated when the borrower makes their mortgage payments.
CMI Mortgage Investments employs a team of industry-leading underwriters, investment directors, fulfillment staff, compliance specialists and legal advisors—all of whom work to ensure that your investment is coordinated effectively. One of the biggest advantages of private mortgage investing is the virtually endless variety of portfolio options available to you. CMI Mortgage Investments takes the time to assess and understand your needs before creating a customized portfolio that aligns with your investment goals and risk tolerance.
CMI has a proven track record in the private mortgage market, having successfully funded more than $500 million in loans across Canada. Get in touch with one of our Investment Account Managers to learn how we can put private mortgages to work for you.