An exciting alternative to traditional investments
Want to outperform your GIC rates?
Tap into direct high-yield mortgage investing. We provide the opportunity for higher returns, regular passive monthly income, and greater control over your portfolio.
~ 9.0%
Avergage Return Rate
$140M
Funded Mortgages
0
Losses to Date
Tired of waiting for lower GIC yields?
Instead of relying on GICs that chug along (as inflation eats into already lower yields), Morcado's mortgage investment platform was designed to offer the most favourable rate vs. risk profile of any interest-bearing investment in Canada.
High-Yield Mortgage Inventory
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Morcado's return rates are typically higher than GIC rates.
And, they're paid out every month.
- You don't have to wait for your higher yields — monthly returns are deposited into an account of your choice.
- Choose from fully vetted, high-yield mortgages offered on our investment platform.
- Spread out your investment for reduced risk and balanced returns.
- Easy, simple platform for seamless mortgage selection.
- Any-time visibility of your investments and returns activity.
Disrupting the way you invest.
Morcado is changing the investment landscape, offering Canadians the unique opportunity to invest directly in high-yield mortgages.
Until now, these types of mortgages have been largely inaccessible for individual investing (MICs operate differently than we do).
While this alternative carries more risk than traditional GICs, it also carries the potential for greater reward.
It's not just an investment opportunity; it's a game-changer in the world of interest-based investments.
Brought to you by Morcado Trust and backed by the expert team behind True North Mortgage, we bring years of mortgage brokering, lending, and underwriting experience to the Morcado platform — with a commitment to stringent compliance and exceptional client-first service.
What Are High-Yield Mortgages?
High-yield mortgages are short-term loans to home buyers and owners that can offer significantly higher returns compared to traditional GICs.
Our innovative platform allows you to select these types of mortgages for investment, curated based on graded criteria.
You become the 'lender' for your amount and 'make bank' like a bank, receiving the same interest-rate returns on a mortgage that banks do while we do all the behind-the-scenes mortgage work.
It's a new way to diversify your investment portfolio, adding the security of Canadian residential real estate coupled with the potential to grow your wealth.
What are traditional GICs?
GICs (Government Investment Certificates) are a familiar form of low-risk, go-to investment. The Canadian Government backs GICs, but their lower risk comes with more modest interest rates.
Offered by banks or financial institutions at different term lengths, you 'loan' your money to them, and, in return, they offer you fixed returns over a specified period.
You can get GICs through most Canadian banks (it's easy to find RBC, TD, Tangerine, and BMO GIC rates online, for example).
The most common form of GIC — non-redeemable — locks in both your investment and the returns until the maturity date of the term chosen. Breaking the term is difficult and can result in costly penalties.
A redeemable or cashable GIC allows you to cash in early without a penalty, though it comes with even lower yields.
Comparing Returns:
Lower GIC rates vs. higher mortgage rates
One of the primary advantages of high-yield mortgages over GICs is the access to higher interest rates.
High-yield mortgages capture a higher spread between the prime rate and traditional mortgage rates, making them an attractive alternative for investors seeking better returns.
These mortgage rates also tend to offer a better inflationary buffer for your yields and 'real' return, compensating during times of inflation volatility.
As the prime rate is increased by the central bank (seeking to curb economic heat and bring down inflation), mortgage rates also tend to rise — whereas GIC-offered rates are slow to rise and often don't increase enough to compensate for higher inflation.
Waiting for gains vs. passive monthly returns
High-yield mortgages on the Morcado platform are typically 3-month to 1-year terms (sometimes up to 18 months), much shorter than the traditional 5-year mortgage. These term lengths are similar to popular 1-year GICs.
Regardless of the GIC term chosen, investors are typically required to wait months or even years to see their gains, with interest returns only accessible at maturity (for non-redeemable GICs).
In contrast, direct mortgage investment offers passive monthly returns no matter the term — you get paid when borrowers make their mortgage payments.
This regular income stream can be a significant advantage for investors looking for consistent cash flow.
Do GICs offer safer returns?
Technically, yes. GICs are government-backed, meaning your investment stays secure until the maturity date when you can access both your initial funds and the yield.
High-yield mortgage investments carry more risk due to the typical mortgage lifecycle (your investment stays with the mortgage if it renews, which can affect your investment liquidity) and the potential for borrower default.
This mortgage type is 'uninsured,' instead backed by the security of residential real estate value.
Morcado seeks to deliver a solid and secure investment platform that allows for balanced returns and reduced risk exposure.
No control vs. ability to choose your return rates
With GICs, investors have no control over the returns, as they are fixed by the issuing institution.
In contrast, high-yield mortgage investments through Morcado allow investors to choose from a range of mortgages with varying return rates and term lengths.
This flexibility enables you to tailor your investment strategy to your financial goals and risk tolerance.
Liquidity and terms
GICs (non-redeemable) typically lock in your money for a set period, with restricted access to funds before maturity and costly penalties to break.
Redeemable GICS offer more flexibility but come with even lower return rates.
High-yield mortgages, on the other hand, may offer varying levels of liquidity based on the mortgage length and the borrower's situation.
This aspect is crucial to consider based on your financial needs and investment goals.
Easy to invest. Use cash — or your RRSP, TSFA, or LIRA accounts.
You have options. Provide cash or transfer funds to a registered savings account with Morcado and start investing. You can decide where your monthly returns are deposited.
Absolutely no trading fees.
Unlimited, commission-free mortgage purchases, inside your registered investment account or out. Low annual fees — with no surprises.
Build wealth with Morcado.
It's time to rethink traditional low-risk investments and explore the potential of direct mortgage investment.
Get started with $10,000 minimum. We make it easy.
For a limited time, we are waiving account setup fees. And all annual fees with a minimum $100,000 invested.
See fee schedule
Want to send us a message instead? Fill out our contact form here, and we'll get back to you.
Disclaimer: As with any investment, we recommend seeking professional mortgage and financial advice that applies to your unique situation. Please contact a licensed Mortgage Investment Advisor or licensed Mortgage Broker for more details about investing with Morcado.
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