Why Invest in Mortgages?

Make bank, like a bank.

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

Our investment platform allows you to invest directly in a mortgage — helping 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.

Morcado Trust helps you (as an individual or corporation) claim some of that interest-rate income for yourself as passive income. By 'loaning' your investment amount to a particular mortgage, you can earn dependable profits every month that comes from the mortgage payment.

You 'make bank' through stable, 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 platform, you can enjoy the up-front benefits of mortgage investments — stable returns, security, and diversification — without the complexities and risks associated with 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 Morcado mortgages:

  • Regular, predictable returns (aka money in your pocket or registered savings account)
  • Higher return rates compared to GICs and 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. And, 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 those who are comfortable with the investment period tied to the mortgage lifecycle.

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

Morcado's high-yield mortgages are typically short or medium-term contracts — ranging from 3 months to 3 years.

If the mortgage (or mortgages) you've invested in are renewed, your funds will continue to be locked in with that property — 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.

What kind of returns are we talking about?

At Morcado, our investment returns are currently based on uninsured, high-yield mortgages.

  • Return rates typically vary between 8% and 12%.
  • Caters to borrowers who may not qualify for traditional bank financing, often due to lower credit scores or unconventional income sources.

The higher risk associated with these mortgage products is offset by higher interest rates compared to traditional or insured mortgages, where the approval requirements are much stricter (which lowers the risk for the lender).

Rates of high-yield mortgages take into consideration this increased risk, 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 with transparency, keeping in mind the best interest of our investors and market dynamics.

Is now a good time to invest in mortgages?

Right now, interest rates are at a 22-year high. An economic environment of higher mortgage rates can be advantageous for investors, as it often leads to higher returns on mortgage investment.

The high-yield mortgages on our platform 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.

Start earning passive income today.

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

Keep up with Morcado!

Catch the latest on product tweaks (like a lowered investment minimum) and investment trends.