CMFG targets the alternative sector of the Canadian mortgage market by investing in shorter-term, customized mortgage loans for faster execution and more flexible terms. This segment of the Canadian borrowers market is typically under-serviced by Canadian financial institutions that are reluctant to dedicate resources to these smaller, shorter-term mortgage investments, and usually cannot provide the customization required to meet the borrowers need.
Our sophisticated, service-oriented approach to lending, and by employing thorough underwriting, active management, and strong governance, we are able to meet the needs of borrowers while providing strong risk-adjusted returns to our investors. Borrowers are typically looking for financing to bridge a period of up to one year for items such as capital improvements and redevelopment of a property or for the purchase of another property and debt consolidation. Our loans are normally repaid with conventional mortgage funding from a financial institution once the applicable transition period is over or from proceeds from the sale of the property.
We believe in building strategic collaboration with lenders, brokers, and investors to service the alternative mortgage sector. CMFG does not offer unsecured loans. We are focused on mortgage investments secured against real estate in marketable areas with no negative influence.
Our investors have lost no money in our mortgage investment or fund to date
Past performance is not a reflection of future performance.
CMFG LIMITED PARTNERSHIP (LP) AND CMFG TRUST
The Fund is managed by CMFG GP Inc., administered by CMFG Mortgage Investments Inc., and the KYC process is conducted by our Exempt Market Dealer. Our team will conduct due diligence, suitability and determine investors risk appetite prior to engaging in any brokering or management services.
TYPE OF INVESTMENT
We offer the opportunity to invest in CMFG Trust and CMFG LP that are utilized to fund mortgages secured on real estate. Investors can utilize both liquid savings and or registered accounts to invest. Registered accounts meaning RRSP, TFSA, LIRA, RIF, RDSP, LRSP, RPP etc.
Investors are required to pass a suitability requirement and due diligence process prior to investing with our Fund. This process is to assess the investor’s investment objectives, suitability to invest, how much an investor is eligible to invest, also to ensure the investor is not involved in money laundering or embezzlement activities.
In addition to the above, investors are strongly advised to obtain independent legal advice from a lawyer, and taxation information from a professional accountant prior to investing.
EXEMPT MARKET DEALER
CMFG appointed a third party exempt market dealer as the distributor of our securities and adhere to the regulatory and compliance requirements by governing bodies.
Investors with zero risk tolerance should NOT invest
Our investor’s interest comes first. While mortgage investments carry some degree of risks, our primary mandate is to protect the interest of our investors by safeguarding capital, completing thorough due diligence prior to funding while delivering consistent annual risk-adjusted returns to investors.
- Consistent cash flow distribution.
- Redemption features for investors.
- Capital preservation is of utmost importance.
- Investors are paid first before any other parties.
- Best practices in credit adjudication and risk management.
- Mitigating concentration risk by diversifying geographically.
- Review and verification of borrowers suitability, income source, credit, use of capital, appraised valuation, asset type, and borrower’s repayment history.
- Diversification of risk. The risk of default is spread over a portfolio and investors are not directly subjected to default in any one mortgage.
- Conservative loan-to-value ratios for a safe exit. A sound exit strategy occurring within 12 months of each mortgage transaction forms the basis of every mortgage investment decision.
- Investing in short-duration mortgages.
- Primarily focusing on lending against income-producing real estate ensures that there is income from the property to service the mortgage investment, which reduces the likelihood of defaults.
- In default proceedings, capital is redeemed by a form of collection from borrowers, the sale of the mortgage, refinance or enforcement of power of sale. We will ensure our investors are paid first before any other parties.
- CMFG primarily does not lend behind other private lenders but will co fund with selective lenders of our choice.
Administrator: CMFG Mortgage Investments Inc. License # 12874
Brokerage Firm: Canada Mortgage and Financial Group License # 12655
CMFG Fund Legal Counsel: Barry Polisuk and Grant Duthie of Garfinkle Biderman LLP.