Why mortgage investing may be 2017’s best bet

Twenty sixteen was a year in which investors across the globe are not going to forget about any time soon. From macroeconomic events such as Brexit and OPEC pushing oil below $30 a barrel, it was a wild ride. The equity markets saw upward pressure from the unexpected victory of Donald Trump and reached all time levels, with the Dow creeping up to the 20,000-point mark by the end of the year.

Now breaking into 2017, we have investors wondering how they can protect capital from the uncertainty pertaining to Trump policy and other unpredictable factors. You may be hearing the equity gurus preaching a shift to “counter cyclical” and “defensive” portfolio weighting in this time of uncertainty. Toronto Mortgage Rates has a different solution (That doesn’t require a CFA to understand!).

Mortgage investing is simple; pooled capital is gathered by Mortgage Investment Corporations (aka MIC’s) to supply financing to a portfolio of diversified mortgages secured by real estate. As the mortgage holder makes principal and interest payments, they funnel back through the fund to the investor. Mortgage Investment Corporations can also be held in registered plans such as a RRSP, and earns predictable returns as payments flow through the corporation to investors. Many Mortgage Investment Corporations provides yields of 8-10% or greater by offering many different types of mortgage lending, including all types of residential and commercial mortgages.

        If you are tired of the volatility rampant through todays equity markets and are looking to reduce your equity exposure in 2017 through the addition of alternative fixed income to your portfolio Toronto Mortgage Rates can help you achieve your goals. Give us a call.

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