Add CMI MIC to Your Client’s Portfolio

Diversify your client’s portfolio by adding a fixed income product secured by Canadian real estate. CMI MIC has achieved higher returns compared to Equity indices and doing so with less volatility.

Industry Expertise

Our investment research goes beyond simply qualifying each individual investment deal. Our extended efforts to understand the industry and it’s underlying fundamentals focus on framing the investment opportunity for value creation through deep market analysis. We employ a thorough due diligence process to identify opportunities and risks, ultimately adding value to our partners seeking informed deal decisions.

At CMI, we believe that due diligence is both an art and a science. We spend a considerable amount of time identifying investment opportunities that meet our rigorous standards. We then spend even more time trying to identify the “story behind the numbers” and whether the opportunity fits our growing portfolio.

Investment Process

The process starts when an Investor first deposits funds into the MIC. These funds are then exchanged for shares of the company. Each investor is entitled to an appropriate number of preferred shares which entitles the shareholder to his or her share of mortgage income earned by the MIC.

1

Invest directly with CMI MIC (non-registered)

  • Investor completes subscription agreement including a copy of identification
  • Cheque is made payable to CMI MIC
2

Invest inside your RRSP, RRIF, TFSA

  • To minimize the taxes your client pays, look to utilize their holdings in registered savings plans, such as an RRSP, TFSA, RRIF, RESP, RDSP, among others.
  • Investor instructs their trustee (usually a trust company or other financial institution) to deposit funds on their behalf into the MIC. The Trustee receives the preferred share certificate and holds the certificate “in trust” on behalf of the shareholder. CMI has established relationships with several trust companies and we will be happy to assist you with your registered investing.

When funds have been successfully deposited into the CMI MIC, management will source mortgages in order to place the newly acquired capital.

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Dividend Payments

A MIC must distribute 100% of its annual net income before taxes to its shareholders in the form of dividend payments (Canadian Income Tax Act – section 130.1). Dividend payments are made on a monthly basis and treated as regular income for income tax reporting. The investor has the option to receive dividend payments in the form of cash or new shares to compound their investment.

The MIC undergoes an annual audit conducted by an independent accounting firm with all shareholders receiving a copy of the annual audited financial statements. Investors are privy to ask the accounting firm and questions relating to the audit for clarification. This is in addition to the monthly individualized statements provided to all investors.

CMI Investment and Operating Policies

  • Target loan to value ratio under 75%
  • All mortgages are highly scrutinized by the experienced underwriting team under the CMI umbrella
  • Estimated target return of 8-9% per annum
  • More than 90% of the portfolio is within residential mortgages
  • A professional appraisal along with a comparative market analysis is conducted for each mortgage
  • Operator performance bonus reinvested into the MIC
  • Operator maintains a sizeable investment in the MIC as a major partner
  • Low management fees with expense ratios significantly lower than industry average
  • No shareholder can own more than 25% of the issued shares
  • An extensive underwriting process conducted in-house through leading underwriting team

Wealth Managers and Investment Advisors

The investment returns generated by the CMI MIC has substantially exceeded those produced by alternative fixed-income investments such as stocks, bonds, and GICs. Also, these wealth-building returns have been achieved without the levels of volatility associated with other investments.

How CMI achieves consistent strong returns

Coming from an extensive mortgage lending background, we have the ability to execute financing structures that are customized to the specific needs of borrowers to compete with the comparatively inflexible financing structures offered by large financial institutions. We go beyond our fiduciary duties to the various regulatory bodies maintaining strict oversight over our MIC’s reporting and management obligations by providing extensive transparency to go along with our detailed monthly, quarterly and annual reporting.

High-quality Mortgages

With over 40 years of mortgage lending history, management holds key relationships that provide access to high-quality real estate in numerous urban centers across Canada. The investment returns that you see are reported net of all expenses, including loan loss. The majority of our mortgages are secured by real estate in our backyard – Ontario. The regions we focus on offering stable, steady real estate markets where the economic fundamentals provide a stable investment foundation.

Working with Your Clients

CMI puts client relationships seriously, taking the time to educate and work with your investors whether they are savvy, experienced investors to investors looking to start with a small investment. Our hands-on approach continues following the mortgage advancement where we handle all facets of portfolio administration. This includes the collection of mortgage payments, payment of property taxes, maintenance of insurance coverage, mortgage renewals and the discharge of the mortgage. This helps ensure your clients have the comfort of knowing the entire process is managed by one group that is accountable for each step of the process.

Investing in Our Partners

The CMI MIC is managed by capable professionals, with substantial experience in all facets of mortgage lending, real estate appraisal, banking, and mortgage law. As we are active in the mortgage market on a daily basis, we have the expertise and knowledge to pass onto our partners. We provide exclusive access to our market research reports, marketing material, market insights and hold regular partner meetings whether it be online or in person with the sole purpose of continuing our Partner’s growth trajectory. We believe in investing in each one of our partners.