Ways to Invest

Invest Your Way

Investing in mortgages through Morcado Trust can be a smart way to diversify your portfolio at any age to earn monthly, passive income.

You can invest using registered savings accounts or non-registered accounts. Registered accounts offer tax savings (exact details differ with each product), and non-registered accounts offer more flexible access to your funds.

Registered Savings Accounts

We currently offer the following registered savings accounts for your mortgage investment.

  • RRSP (including Spousal RRSP)
  • TFSA
  • LIRA

These types of accounts are Government of Canada tax-savings vehicles that are registered with the Canada Revenue Agency (CRA). You can transfer amounts from your current bank account or registered products to registered ones held with Mortgage Trust.

Read more about the different registered accounts here.

Non-Registered Accounts

We also offer investment through non-registered accounts.

You can transfer funds from your regular bank account to a Morcado non-registered account, which is primarily used to transfer and temporarily hold funds for mortgage investment.

Your monthly returns (income) are deposited back into your designated bank account (not into this account).

Morcado Trust does not offer bank-standard savings or chequing accounts.

Registered vs. Non-Registered: Tax Savings vs. Flexibility

Tax savings, but less flexibility.

Registered investment products (such as an RRSP offered by the Government of Canada through financial institutions) can offer tax savings, making them attractive vehicles for holding mortgage investments, especially for long-term growth.

However, withdrawing funds can trigger tax implications and, therefore, offer less flexibility and liquidity should you need quick access to your money

Flexibility, but taxed on your passive returns.

Non-registered accounts, while less tax-efficient, offer more flexibility for accessing your funds once they become available (e.g. the mortgage term of your investment ends or is paid out) and won't be subjected to the withdrawal rules of registered accounts. Your interest-rate income, however, will incur taxation at your marginal tax rate during the calendar year it's earned.

Choose your risk level — or balance it out. 

Currently, the minimum amount for investment in mortgages through the Morcado platform is $10,000 (subject to change).

Our platform is designed to allow you to spread your investment across many mortgages to reduce risk and balance your returns, investing your way to financial wealth.

Selecting higher-risk mortgages typically nets higher returns, but increases exposure to potential borrower default. Or lower-risk mortgages offer monthly returns with more investment security. Your choices should align with your overall investment strategy, tax situation, and financial goals.

There are maximum amounts you can invest in one mortgage, which may depend on your investment details (as outlined in your Morcado Investor Account).

How do you get your returns?

You will designate where your monthly returns (per mortgage invested) are deposited, either into your registered investment accounts held with Morcado Trust or back into your bank account.

Your return amounts are set when you first invest in a mortgage and continue for the remaining term. If the mortgage is renewed, a new rate is outlined (either the same or higher), which will affect future return amounts received for that mortgage.

Start earning passive income today.

Book a time that works for you. A Mortgage Investment Advisor will help you set up your account.

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