Providus aims higher. We seek higher rates through 1st and 2nd mortgages and other financing structures, while reducing risk through diversification, detailed diligence procedures, and strict underwriting criteria. By purchasing shares in Providus, you participate in a diversified pool of high interest loans that are professionally screened for quality and security.
Please read our Frequently Asked Questions or contact us for more information.
Providus MIC was launched in April of 2013. Since then, we have provided investors with the following rates of return:
Past performance is no guarantee of future results. While we cannot guarantee future performance, we are confident in our ability to continue to achieve similar returns.
A MIC is a company created specifically for mortgage investment and lending in Canada. For borrowers, MICs are a valuable source of alternative financing that can be more flexible than the big banks. For investors, MICs can be a way to invest in a diversified and secured pool of mortgages.
Yes, shares of a MIC are qualified investments, with certain restrictions, under the Income Tax Act (Canada) for RRSPs, RRIFs, RESPs, RDSPs, DPSPs, and TFSAs.
Real estate investing is a very broad field, and it’s important to know exactly what you are investing in.
A MIC invests in a specific sector of the real estate market: mortgage lending. They seek to make money exclusively from interest charges and, sometimes, from mortgage servicing. Providus MIC is even more specific, as we focus primarily on residential and commercial developments. Our loans are typically short-term in nature which enables us to react quickly to market changes and gives us greater certainty as to our interest income.
Other investments might include direct ownership of rental or holding properties, or indirect ownership such as units of investment trusts or partnerships. These investments are typically very long term in nature, and seek to make money from rental income and capital appreciation. They can also be very risky if, for example, you need to sell an apartment building in a depressed market, if you do not hold a diversified portfolio, or if you have vacancy losses. A MIC does not commonly have these risks.
An investment in Providus MIC is secured by mortgages placed on residential and commercial properties, and often by additional security such as personal and corporate guarantees, general security agreements and assignments of material contracts such as insurance policies. The Providus team includes experienced underwriters in the loan approval process, and the approval process for all lending is rigorous. We are confident in Western Canada’s real estate values and while this investment is not guaranteed, we believe our investments are adequately secured.
The members of our management team have decades-long backgrounds in the financial industry and in the lending business. Collectively, we have a deep understanding of both capital and real estate markets, which has provided us with extensive expertise in raising and managing investment capital, and in providing the information and services that investors need and expect.
We have appointed MNP LLP as our auditors. See their website.
Mortgages are known to provide stable and consistent investment income. In fact, banks have been making profits from mortgages for, well, hundreds of years. MICs are a way for you to profit from mortgages – just like the banks. And, 100% of the net profits of a MIC are paid to investors on an annual basis.
Providus MIC specializes in loans to developers of residential real estate, which attract a higher interest rate than typical home mortgages and where we have proven expertise. Typically, over 90% of our portfolio is placed in these types of loans.
In addition to higher interest rates, an investment in Providus MIC can:
Most other investments, such as stocks and bonds, are affected by factors that may not be directly related to the investment itself; factors such as investor sentiment and broad market performance. This can make traditional investments volatile and uncertain.
By contrast, real estate returns tend to be less volatile. Since the performance of a MIC is directly related to its portfolio of mortgages, a MIC can often provide a higher payout than other investments, with less volatility and uncertainty.
A MIC portfolio can include everything from mortgages on residential property to commercial and development mortgages on new projects. We expect that up to 75% of our investments, over time, will be in second mortgages on residential developments. The remainder will be in first mortgages and other financing opportunities. Every investment is based on a thorough investigation of the property.
Providus issues investment products on a private placement basis through registered investment dealers. Contact us for a copy of our offering memorandum and then ask your investment advisor about next steps. Don’t have an advisor? Contact us for more information.
The nature of our business is that funds invested with us are placed in mortgages with terms averaging around 2 years. This is a medium-term investment and we ask that investors consider their investment to be locked-in for at least 12 months, after which time shares are redeemable with 60 days notice and with certain conditions.
An investment in Providus is limited to Canadian residents. Since each province has its own investing regulations, please contact your investment advisor for more information regarding your specific circumstances.
We distribute interest quarterly with a special dividend at year-end. Note that dividends from a MIC are treated as interest income for tax purposes.
This website is intended for residents of Canada, and is for information purposes only. Nothing herein is to be construed as a prospectus or solicitation for the securities of Providus Mortgage Investment Corporation. An investment in Providus Mortgage Investment Corporation is available only to qualified investors on a private placement basis pursuant to exemptions from prospectus requirements under applicable securities laws. Contact Providus for important investment details.