Vanguard Mortgage Investment Corporation, Vancouver BC

February 24, 2014

Yield draws investors to mortgage investment corporations

Canadian investors are offered a stake in real estate — through a real estate investment trust or via a mortgage investment corporation (MIC). They are drawn to high yield paying real estate investment trusts or mortgage investment corporations.  Typically, the yield can range from 7% to 9% or more compared to 2% to 3% for GICs and government bonds. Many of these private MICs are based in Western Canada. View more info about Vanguard mortgage investment and past yield performance.

 Mortgage investment corporations in Vancouver

Vancouver Mortgage Investment

In recent years, many of the MICs are organizing seminars for Chinese investors to educate them on the investment options they have in Canada. Some of these MICs in Vancouver are actively targeting Chinese investors by advertising their offerings in various Chinese newspapers. Vanguard is one of these MICs well positioned to capture a share of the investment money from Chinese investors. You can learn more about Vanguard Mortgage Investment Corporation and its management team.

While it’s not known how much of the capital raised is invested in real estate, what’s known is that about $140 billion is raised annually in the market, an amount that’s larger that what’s raised in the public equity markets. Link to Financial Post report here. Although Canadian banks and credit unions are not discussing the merits of private mortgage investment, smart Canadian investors are learning about such high yield investment through other formal and informal sources.

Vancouver Mortgage Investment

Mortgage investment corporations, commonly called MICs in Canada come in various forms. These investments are real estate related, and they are governed by the Income Tax Act of Canada, and they pay out all their net income. The publicly traded entities receive wide press coverage, but their number is small compared to the more than 300 private MICs that are registered with the government. These private mortgage investment corporations received tax exempt investment like RRSP, TFSA, RESP, etc or a investor can invest his/her savings directly as a non-registered investment.

Why MICs are popular with investors? 

 The main reasons for the popularity of private mortgage investments to many investors are:

  • Predictable income. Income is distributed quarterly, which an investor can reinvest to earn compounded returns.
  • Low volatility. Vanguard’s mortgages are short term in nature (typically 6 to 18 months), which allows hedging against interest-rate risk and real estate market conditions.
  • Security. Vanguard’s mortgages are secured by real properties – diversify  portfolios across several markets, types of mortgages and properties.
  • Liquidity. An investor can access his/her capital early (certain restrictions apply) in the event you need it – not tied to the maturity date of individual mortgages.

For more info on whether private mortgage investment is suitable for you, kindly contact me (Elsie Tse) at 604-716-3369 or Email Me .

Vancouver Mortgage Investment

February 23, 2014

Mortgage Investment in Vancouver BC.


Are you in search of better return for your money? Tired of getting low returns for your money in money market and fixed income investments? Find out more about your investment options here.

Vancouver mortgage investment

Ordinary Canadian can participate investing in higher return mortgage investments that are available through many of the Mortgage Investment Corporations (MIC) in B.C. In Vancouver, Vanguard Mortgage Investment Corporation provides investors a passive way of investing their money for higher return than GIC and most other assets.

MICs have been around since 1973 when federal legislation was enacted by the Canadian Government to promote private financing and making it easier for Canadians to invest in mortgages.

MICs are one of the lesser known asset classes in Canada, despite yielding solid long-term returns to investors and despite being RRSP, TFSA, RRIF and RESP eligible in most cases. For many Vancouver investors, MICs, with their strict audit and reporting regulations, are a more streamlined, transparent and effective way of investing in mortgages and real estate.

Mortgage investment through many of the Vancouver MIC are appropriate for investors seeking higher yields and interest income compared to money market and fixed income investments, and for those who are seeking a consistent stream of income. Most MICs are suitable for investors with a low to moderate tolerance for risk.

Vanguard Mortgage Investment Corporation offers investors:

  • Predictable income. *Income is distributed quarterly, which an investor can reinvest to earn compounded returns.
  • Low volatility. Vanguard’s mortgages are short term in nature (typically 6 to 18 months), which allows hedging against interest-rate risk and real estate market conditions.
  • Security. Vanguard’s mortgages are secured by real properties – diversify  portfolios across several markets, types of mortgages and properties.
  • Liquidity. An investor can access his/her capital early (certain restrictions apply) in the event you need it – not tied to the maturity date of individual mortgages.

* The company don’t provide fixed returns and past performance doesn’t guarantee future results.

If you live in Vancouver or any part of the lower mainland of Vancouver, and like to have more info about investing and transferring your RRSP, TFSA, RESP and other registered investments to Vanguard, you are welcome to contact me (Elsie Tse) at 604-716-3369 or Email Me 

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Private Mortgages in Vancouver

May 6, 2013

Vancouver Private Mortgages

Private mortgages in Vancouver are available from various private lenders to provide financing to borrowers who are in a hurry to get the money they needed. Private funding of a loan is common when a property owner isn’t able to get traditional bank financing. You should seek alternative financing solutions, or ask for independent legal advice before you apply for a private mortgage.

Getting a private mortgage in Vancouver is not a long term solution to a borrower’s financial situation, but the loan helps to get a borrower out of a short term problem. The best advice we can give you regarding private mortgage financing is to contact a broker or seek advice from a lawyer.

Before we arrange to provide a private mortgage, we need to know that the money you are seeking helps you to transition into a better situation after we arrange the mortgage for you. We don’t want to simply buy you time if you have no exit strategy in place.

Below are a few of the examples where private mortgages are most useful

  • buying you out of a foreclosure situation so you can have time to arrange the sale of your property.
  • When a construction loan from a traditional lender is difficult to find or too difficult to work with.
  • A second mortgage helps to tie over a situation to refinance your first mortgage.
  • A private mortgage helps your situation where things need to be cleaned up, or give you more time to fix the issue.

You may be in a situation where a private mortgage will not help you resolve your problem. If you are facing serious credit issues, credit rehabilitation may be your answer to your needs. When your sole purpose of getting a private mortgage is to repair your credit and boost your credit score, you need to diligently follow the steps in improving your credit. 

If you feel your situation may require a private mortgage, or you like to get clarification on your situation, please contact me (Elsie Tse) at 604-716-3369 or Email Me  for a discussion.

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Should Vancouver Seniors Consider CHIP?

January 3, 2013

CHIP Home Income Plan reversed mortgageCHIP Home Income Plan is a Canadian reverse mortgage offered by HomeEquity Bank of Canada. It is popular income plan for senior who can tap the equity in their homes without having to worry about making any interest or principal payments. The mortgage only comes due when the borrower dies, sells their house or move out permanently.

With a reverse mortgage, home owners can borrow up to 50 per cent of the appraised value of their home. They repay the principal – and interest that has been accumulating – when they sell it.

As more boomers hit retirement age, reverse mortgages are growing in popularity. Reverse mortgages may be a good fit for some seniors, the products may not be suitable for everyone. Although the are other options for seniors, reverse mortgage is appealing to many seniors and it has many advantages to the borrowers. It is important to know how reverse mortgages work, how much they cost and the pitfalls to avoid.

Misconception on loss of equity 

There are 2 important numbers that will determine what happen to your home equity after 10 or 15 years. The interest rate of your reverse mortgage and the rate of appreciation of your home. When CHIP Home Income Plan was able to receive funding through HomeEquity Bank, the lower cost of funding effectively reduced what used to be 7.5% or more interest rate to just under 6% for 5-year fixed rate mortgage.

Home appreciation is equally important in affecting the final outcome of the mortgage when it is paid out. If 50% or $300,000 is taken out from a clear-titled $600,000 home, the equity remaining in the house is $300,000. Assuming at 3.00% appreciation annually (assuming property value barely keep pace with inflation of 3.1%), the equity value of a $600,000 home after 15 years is just under $935,000.

A borrower taking out $300,000 reverse mortgage would have the money for their use. The money would improve the borrower’s lifestyle, and if part of the money is invested wisely, it would have generated extra income for the borrower.

Net equity value at the time of paying out the mortgage 

If a variable rate mortgage of 5.00% is used (Annual Percentage Rate (APR) is 6.02%), at the end of 15 years, the $300,000 loan will have outstanding loan plus interest around 550,000. The difference between the property value and the loan and interest owing is $385,000.

If you like to discuss your situation, or like to find out if reverse mortgage is for you, kindly contact me (Elsie Tse) at 604-716-3369 or Email Me 

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Vancouver Seniors: CHIP Home Income Plan – Reverse Mortgage

January 3, 2013

CHIP Home Income Plan reversed mortgageThere are many articles on the trend for senior tapping into their home equity for extract money locked inside their home. In Vancouver and the suburbs around the City, CHIP Home Income Plan may be consider a suitable avenue for seniors to free up money from equity they have on their homes. HIGHLIGHTS of the CHIP Home Income Plan – Reverse Mortgage

  • A CHIP Home Income Plan is a reverse mortgage secured by the equity in your home. A reverse mortgage pays, and you can decide how much and how often you want to receive the money. The big advantage with CHIP is that you do not have to make any payments of principal or interest for as long as you or your spouse live in your home.
  • In Canada, A CHIP Home Income Plan is designed exclusively for homeowners age 55 and older. This age qualification applies to both you and your spouse.
  • You can receive up to 50% of the value of your home. An appraisal is required to determine your home value.
  • You can choose how you want to receive the money. You have the option of receiving all the money you’re eligible in one lump sum advance, or you can take some now and more later. Or, you can choose to receive planned advances over a set period of time. You can combine a lump sum advance at the beginning with ongoing advances over time.
  • You can use the money any way you wish. The full amount of the loan and interest is paid or becomes due when your home is sold, or if you move out. You will never be asked to move or sell to repay your CHIP Home Income Plan.
  • You maintain ownership and control of your home. You are required to maintain your property and stay up-to-date with property taxes, fire insurance and condominium or maintenance fees while you live there.
  • You keep all the equity remaining in your home. In an inflationary environment, your home value increases over time. In majority of the cases, homeowners have money left over when their CHIP Home Income Plan is repaid.
  • Your estate is well protected. If your heirs want to keep your home, they can repay the CHIP Home Income Plan from other funds.

If you would like to know more about the CHIP Home Income Plan – Reverse Mortgage, give me (Elsie Tse) a call at 604-716-3369 or Email Me 

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Is Home Income Reverse Mortgage For You?

January 2, 2013

Home equity loan reversed mortgage for seniors

Home Income Plan – A Reverse Mortgage

h the Canadian Home Income Reverse Mortgage, money in your home becomes available for you to do things you really want to do. CHIP Home Income Plan is Canadian “reverse mortgage” secured by the equity in your home. You do NOT require to make any payments on your reverse mortgage  – no principal or interest payment for as long as you, or your spouse, reside in your home.

The money is tax-free and it will NOT be added to your taxable income. It will not affect your Old Age Security (OAS) or the Guaranteed Income Supplement (GIS) benefits.

Reverse mortgages have become the simple and practical choice for many seniors across Canada, United States, United Kingdom and Australia. CHIP us subject to age qualification and has a limit to the loan you can get.

Reverse Mortgage up to 50 per cent of the Value of Your Home

The loan you are eligible to receive from your reverse mortgage is based on:

  1. The age of you and your spouse
  2. The type of home you own
  3. The location of your home
  4. The current value of your home

You are free to choose

You can decide how you wish to receive your funds.

  1. Receive one lump sum payment
  2. Spread out your payments – one for now and another at a later date
  3. Get a lump sum now with ongoing payments to you over time
  4. Receive planned payments over a period of time

A CHIP Home Income Plan in Canada has a variable rate option with no fixed term or, if you can choose to have a fixed rate of six-month, one-year, three-year, or five-year terms. Your interest rate will be based on the length of term you choose.

You Decide Your Payment Options

  1. No principal or interest payments are required for as long as you or your spouse lives in your home.
  2. Pay all or part of the annual accrued interest ($1,000 minimum/year) without signing up for the interest payment discount plan.
  3. You can pay once every calendar year when it’s convenient for you
  4. You will qualify for a 0.50% discount on your next discount review date if you pay the full year’s accrued interest.
  5. The loan owing becomes due when you and your spouse pass away, when the home is sold, or if you both relocate.
  6. You have the option to repay the principal and interest in full at any time, an interest rate differential may apply.  Within the first three years, a prepayment amount will apply if you repay your loan. These may be waived or reduced in the event of death, a move to a long-term care facility or retirement residence.

Set-up Costs

Appraisal Fee

  1. Typically from $175 to $400, amount varies by province and properties.
  2. Independent appraisal is ordered through the providers of the home income plan.

Independent legal advice is required

  1. Typically cost for legal advice – $300 to $600
  2. Price range assumes no title issues.
  3. You discuss fees with the legal advisor before proceeding.

Costs – legal, closing & administrative

  1. Costs are $1,495 for various interest rate options.
  2. These costs will be deducted from your home income reverse mortgage funds.
  3. These costs include title search, title insurance and registration.
  4. They are not an out-of-pocket expense.

Kindly contact me (Elsie Tse) at 604-716-3369 or Email Me 

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CAAMP’s Spring Mortgage Report 2012

December 3, 2012

CAAMP-Spring-SurveyFor mortgage and real estate buffs, CAAMP’s semi-annual reports are among the best of the best sources of market stats.

Dunning estimates that home purchases would drop 100,000 per year if the minimum down payment were 10% instead of 5%. He says that would trigger “less job creation…slower growth of house prices [in fact, prices might fall], reduced consumer confidence..and tighter rental markets with more rapid rates of rent increase.”

Renters and Down Payments

Reasons that tenants gave for opting to rent as opposed to owning:Real estate report

  • 52% said they have not yet saved the money needed to purchase a home
  • 33% said the cost of homeownership is prohibitive
  • % of renters with $30,000+ available for a down payment:  11%
  • Average funds that renters have available for a down payment: $21,000
  • Among mortgage holders who purchased their homes recently (2007 to the present), if it had it been mandatory to put 10% down to secure a mortgage:
    • 40% said they would have been able to make their purchase
    • 45% stated they would be unable to make the purchase
    • 14% were unsure

Kindly contact me (Elsie Tse) at 604-716-3369 or Email Me 

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CMHC – Canada’s Breaking Point

November 8, 2009

Is there a housing bubble in Canada?

Below is are quotes from an article published by Jonathan Tonge of the America Canada Blog.

“Everyone here is probably very well aware of who CMHC is. For any international visitors, CMHC was formed as a crown corporation in Canada after World War II to address the shortage in housing. It’s mandate was to make home ownership accessible to all Canadians. CMHC primary deliverables is mortgage insurance and mortgage backed securities. Think Fannie and Freddie”.

“In 2008, Canadian home prices started to dip as affordability became the worst on record in many cities. CMHC admits that it was ordered to approve as many high risk borrowers as possible to prop up the housing market and keep credit flowing. 42% of all high risk applications were approved, a 33% increase over 2007”. “Even at the zenith of the US housing bubble, prices peaked around $230,000 US while incomes were around $47,000 US. In Canada, incomes are $44,000 and prices are now at $326,613”.

Read the full article here.

Kindly contact me (Elsie Tse) at 604-716-3369 or Email Me 

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Don’t handcuff your mortgage

June 16, 2009

Below is a Financial Post article by Garry Marr, published: Friday, June 12, 2009.

Would you like to pay an extra $300 per month on your mortgage? Not likely.

That hasn’t stopped a number of Canadians, with the deal of a lifetime on a variable-rate mortgage, from switching over to a more expensive fixed-rate product and paying the extra freight.

A fear of rising rates is driving the rash decision. But if you’ve finally managed to pin your banker to the ground, why on Earth would you let him off the mat?

More than 28% of Canadians have a variable-rate product tied to prime, according to the Canadian Association of Accredited Mortgage Professionals (CAAMP). If you negotiated a deal before October of last year, chances are you are now borrowing money for as little as 1.35%. That’s based on deals that at one point saw the banks giving 90 basis points off prime. Prime is now 2.25%.

Read the full article here.

New 50/50 mortgage

Merix Financial and TMG have launched a brand new hybrid called the 50/50 “Wise” Mortgage.  It lets borrowers lock in 1/2 of their mortgage at a 5-year fixed rate and 1/2 at a 5-year variable rate.  The effective combined rate is 3.38% as of today.

Hybrid mortgages offer interest rate diversification that may be suitable for some home owners. When it is difficult for a borrower to choose a fixed or variable rate mortgage, choosing a hybrid mortgage may be the answer to some borrowers:

Some experts think hybrids are a great idea.  Dr. Moshe Milevsky, a prominent mortgage researcher, in the past said that “People should strongly consider mortgages that are part fixed and part floating.”

For more info on 50/50 mortgage, follow this link here.

Kindly contact me (Elsie Tse) at 604-716-3369 or Email Me 

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The Merix 50/50 “Wise” Mortgage

June 16, 2009

 Vancouver Home Mortgage: the 50/50 mortgage

Hybrid mortgages offer interest rate diversification that may be suitable for some home owners. When it is difficult for a borrower to choose a fixed or variable rate mortgage, choosing a hybrid mortgage may be the answer to some borrowers:

Some experts think hybrids are a great idea.  Dr. Moshe Milevsky, a prominent mortgage researcher, in the past said that “People should strongly consider mortgages that are part fixed and part floating.”

Merix Financial and TMG have launched a brand new hybrid called the 50/50 “Wise” Mortgage.  It lets borrowers lock in 1/2 of their mortgage at a 5-year fixed rate and 1/2 at a 5-year variable rate.  The effective combined rate is 3.38% as of today.

What is a 50/50 mortgage?

·         50% of the mortgage is at current standard 5 year fixed rate pricing (currently 4.44%)

·         50% of the mortgage is at current ARM pricing (currently prime + 0.45%)

·         Effective rate is approximately 3.57% based on current rates!!!! 

·         One collateral charge is registered

·         ARM is convertible at any time during the term of the mortgage to our best fixed rates.  ARM must be locked in to remaining term so both portions mature at the same time

·         Mortgage is portable either into a new 50/50 Balanced Mortgage or the borrower can lock in the ARM portion prior to porting and port the whole mortgage as a blended fixed rate.

The 50/50 Balanced Mortgage Borrowers that choose the 50/50 balanced mortgage will benefit from historically low fixed rates and low ARM rates now and have the opportunity to lock in their ARM rate to a fixed rate at any time during the term of their mortgage.  Your borrowers will be protected by being locked into a low fixed rate now and by having the ability to lock in their ARM portion at our best fixed rates at any point during the term of the mortgage.

The perfect balance

Kindly contact me (Elsie Tse) at 604-716-3369 or Email Me 

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