Why Invest in Mortgages?

Make bank, like a bank.

The term 'making bank' refers to someone earning good money over a long period.

The Morcado™ mortgage investment platform allows you to invest directly in a mortgage — allowing you to become a 'lender' and earn interest-rate profits like a bank.

How do you make money? Mortgage loans help Canadians buy homes. By charging interest rates, lenders make money on those mortgage loans, over and above the costs involved.

Our platform offers you (as an individual or corporation) the ability to claim some of that interest-rate income as passive income. By 'loaning' your investment amount to a particular mortgage, you can earn profit every month that comes from the mortgage payment.

You 'make bank' through passive monthly returns that help you build wealth and reach your financial goals.

An innovative and secure way to invest in residential real estate.

Investing directly in mortgages offers an attractive medium to long-term investment horizon for a well-balanced portfolio.

Through our innovative and simple platform, you can enjoy the up-front benefits of mortgage investments — interest-rate returns, security, and diversification — without the complexities and risks associated through personal mortgage loans.

Your investment amount is placed directly against a residential property that has already received mortgage funding, along with other investors on a 'pari passu' basis (equal footing) — which further disperses risk and helps protect your investment dollars.

As with any investment, there are always certain risks to consider. But Morcado opens the door to participate in residential real estate in a different way.

Benefits of investing in mortgages through Morcado:

• Monthly returns (aka money in your pocket or registered savings account)
• Higher return rates compared to GICs and some MICs
• Lower volatility compared to the stock market
• Collect passive income while we do the work
• No trading fees, with transparent and low annual fees
• Access to pre-vetted mortgages, with details to help your investment decisions
• Security backed by residential real estate
• Fully managed mortgages for your mostly hands-off process
• Potential to maximize your investment growth with tax-saving products
• Ability to diversify across many mortgages to reduce your risk

Why do we offer mortgages for investment?

At Morcado, we really know mortgages. We've been successfully working with mortgages for years. So, we've assembled our mortgage access and knowledge to simplify the investment avenue for you.

We have what it takes to help everyday Canadians like you participate in residential real estate from the investment side — taking you a step beyond just owning a home.

On your own, acting as a personal lender for mortgages can be a complex and demanding process — just think about the details and risks you would need to cover to loan a large amount of your money to a friend or acquaintance so they can buy a house.

Our investment platform allows you to easily deploy your savings into multiple mortgages without the hassle of managing them (or personally knowing the owners).

Suited for medium to long-term investment horizons.

Investing with Morcado is best suited for:

• Investors aiming to receive returns over several years, ideally for medium to long-term horizons (from 3 years up to 20 years or more for retirement use).
• Investors who are comfortable with the investment period tied to the mortgage lifecycle.

Morcado investing is tied to the mortgage lifecycle.

The high-yield mortgages offered for investment are typically short-term mortgage terms, ranging from 3 to 18 months. However, if the mortgages you've invested in are renewed, your funds will continue to be locked in with those properties — and carries the risk that you won't be able to access your funds for a few years until the mortgage is paid out.

Or, your money may be available faster than you thought, especially if the mortgage is an open term and is paid out early (through prepayment). You'll then have your funds available to withdraw or reinvest in other mortgages.

We encourage potential investors to consider their liquidity needs and investment horizons carefully.

What kind of returns are we talking about?

The uninsured, high-yield mortgages offered on the Morcado investment platform typically offer:

• Return rates that currently vary between 8% and 12%
• Higher mortgage rates compared to traditional products

High-yield mortgages cater to borrowers who may not qualify for traditional bank financing, often due to lower credit scores or unconventional income sources. The higher interest rates associated with these products reflect a higher default risk and take into consideration the borrower's creditworthiness and the specific terms of the mortgage.

It's important to note that the above return rates are indicative and subject to change based on market conditions and the specific characteristics of each mortgage.

We ensure that rates are calculated transparently, considering the best interests of our investors and market dynamics.

Is now a good time to invest in mortgages?

Interest rates are high right now compared to past years. An economic environment of higher mortgage rates can be advantageous for investors, as it often leads to higher returns on mortgage investments.

The high-yield mortgages on our platform can carry higher rates than traditional lending channels, offering attractive passive monthly income for the term of the invested mortgage.

Mortgage investment can also offer a hedge against higher inflation — as home prices and rents tend to rise, so can the returns.

However, higher rates can bring an increased risk of default. We thoroughly curate the mortgages we offer to help reduce risk.

Why do some homeowners choose a high-yield mortgage?

High-yield mortgages are available to homeowners who need a mortgage solution but may have complex income sources (making it harder to get mortgage approval through traditional banks) or who may face credit challenges.

Many Canadian homeowners rely on this type of mortgage to own a home and are comfortable paying a higher mortgage rate either as an interim or long-term financing solution.