Why you are not getting a straight answer from your bank?
If you ever ask your bank “whether investing in a pool private mortgage investment is safe”, you will not lightly get a straight answer. Why? They are not in a position to tell you whether you should or should not invest in private mortgages. Many ordinary investors are participating in such investments, and they are happy to see the results of their investments. Through their banks’ Canadians are limited to invest their money in mutual funds, or stocks with uncertain returns, or invest in GICs, Canadian Bonds or Treasuries which are paying 1.5 to 3.0% interest.
Canadian banks don’t offer pool private mortgage investments through Mortgage Investment Corporations (MIC) or syndicated private mortgages. Both, offer higher yield in the 7% to 10% range after deducting management expenses. You can read more about MIC and Google wikipedia to learn more about MIC. There are hundreds of MICs in Canada and in British Columbia, many such corporations offer annualized returns at 8% or more. View info about Vanguard Mortgage Investment Corporation here.
Mortgage investment Vs Stocks investment and GICs
The chart below illustrates the returns of a $100,000 investment; one invested in a MIC paying 8% dividend and another invested in stocks that has good returns for many years and two years of negative returns. Although GIC is not included in this comparison, at 3% return a year, it will result in a gain of less than $35,000 after 10 years.
The return from mortgage investment far exceed investments in money market funds, dividend stocks, treasuries bills and GICs and fixed deposits.
RRSP, RESP, TFSA and other tax deferred investments
You can start growing your investment by taking the first step in learning more about mortgage investment. The current investments you or your family hold under various tax deferred investment are eligible to be invested in Vanguard’s Mortgage Investment. The following list of eligible tax deferred investments can transfer to Vanguard:
- RESP – Registered Educational Saving Plan
- RRSP – Registered Retirement Saving Plan
- RRIF – Registered Retirement Income Fund
- RDSP – Registered Disability Saving Plan
- TFSA – Tax –Free Saving Account
- LRIF – Locked – in Retirement Income Fund
- LIRA – Locked – in Retirement Account
- IPP – Individual Pension Plan
- LIF – Life Income Fund
If you have any questions on Vanguard Mortgage Investment Corporation, or the process to open your investment account with Vanguard, kindly contact kindly contact me (Elsie Tse) at 604-716-3369 or Email Me for more info about alternative investment.