Mortgage Investment Corporation
Grow Capital One Inc.
Grow Capital One Inc. is a Mortgage Investment Corporation (“MIC”) that offers eligible investors exposure to private mortgage credit, secured against real property. The MIC pays monthly distributions funded by borrower interest and fees. All terms are governed by the Offering Memorandum (“OM”).
How your capital is invested
- Security: Registered mortgages on real property with a mix of first and second-position loans.
- LTV limits: Up to 75% on first mortgages and 80% on second mortgages.
- Diversification: Across borrowers, collateral types, geography, mortgage position, and credit profile to limit single-factor risk.
- Current focus: Western Canada (primarily Alberta) and major urban centres, quality residential real estate collateral supported by independent appraisals, and borrowers with good credit and documented consistent income.
- Underwriting and oversight: Each loan is approved in accordance with underwriting standards, secured appropriately, and governed by board-approved lending policies.
Distributions
- Schedule: Monthly, on the 15th of each month.
- Reinvestment: Investors may elect a Dividend Reinvestment Plan (“DRIP”) under which additional preferred shares are issued in lieu of cash distributions.
- Notes: Distribution amounts depend on the performance of the underlying mortgages.
Redemptions and liquidity
- Lock-up: Six-month initial lock-up from subscription.
- Notice: 90 day written notice required.
- Fulfillment: Processed in accordance with the terms of the OM.
Who can invest
Available to individuals who qualify as Eligible Investors under applicable securities laws and the OM.
You may qualify if any one of the following applies:
You have net assets (alone or with a spouse) exceed $400,000
Your individual gross income before taxes exceed $75,000 in each of the last two years, with a reasonable expectation of the same this year
Your total household gross income before taxes exceed $125,000 in each of the last two years, with a reasonable expectation of the same this year.
Fees and expenses
- Management fee: Payable to the Manager as described in the OM.
- Operating expenses: The MIC pays ordinary-course costs of running the fund and portfolio (e.g., mortgage acquisition/servicing, appraisals, foreclosure/enforcement, brokerage/commissions on portfolio transactions, interest expense if any, legal and audit, transfer/registrar and securities administration, reporting/communications, insurance, and taxes), all as set out in the OM.
Governance and oversight
- Board policies: Lending conducted under board-approved policies and in accordance with the OM.
- Underwriting discipline: Standardized underwriting with documented security, registration, and file controls.
Reporting
- Investors receive regular updates and required tax reporting.
How to invest in Grow Capital One Inc.
Contact our office to review your objectives and eligibility and to receive the OM and subscription documents.
Frequently Asked Questions
How are loans valued and risk recognized?
Loans are carried in accordance with accounting standards and the OM, considering expected credit losses. Real estate collateral values are based on professional, independent, and current appraisals.
Where do your deals come from and how selective are you?
We review deal flow from a variety of mortgage brokers, including Union Lending Corporation, and fund only a subset that meet our underwriting criteria that include good credit, verified income consistency, loan to value that are established by professional appraisals, and justified collateral valuation.
Important information
This page is for information only and does not constitute an offer to sell or a solicitation to buy securities. Any offering is made only under the OM to investors who meet applicable eligibility requirements. Approvals and terms are set out in the OM. Redemption rights are subject to notice periods, available cash, and other limits set out in the OM. Returns are not guaranteed. Past performance is not indicative of future results.