1. Low Administration Costs: Most of us who have had a mortgage know how long it takes to pay this debt off. Borrowers are required to pay the cost to have the mortgage registered against title to their home. The Bank simply sits back and cashes the cheques each month.

2. Cash Flow: A mortgage generates cash each and every month. Clearly the amount of the monthly payment will depend on the size of the mortgage, the interest rate and amortization period. However the payment comes in each month if the borrower does not want to loose their home. Generally, the mortgage payment will be the first payment made by people, even in the event of financial difficulty. If individual bankruptcy occurs, a mortgage holder’s security is not affected by the borrower declaring bankruptcy

3. Protected Capital: Perhaps the main reason why financial institutions compete closely with one another for mortgage investments, is the low risk associated with these investments. Clearly, the risk associated with a first mortgage is less than the risk associated with a second mortgage; however, the return from holding a second mortgage is substantially greater. EMIC’s management company, Equimor Corporation, manages the risk/return tradeoff by holding a diversified portfolio of mortgages. For the first several years the mortgage is outstanding, almost all of the payment is applied to interest. The capital is protected by the value of the real estate against which the mortgage is legally registered, and the value of the mortgage is not affected directly by any volatility in the stock markets. The owner of the house cannot deal with the property unless and until the mortgage is repaid in full. If the borrower defaults all costs incurred by the holder of the mortgage to enforce the mortgage, as well as any unpaid interest, are secured as well. If any amount remains outstanding after the property is sold, the mortgage holder can take out a judgment and enforce this judgment against all other assets owned by the debtor.

Another strategy available to the mortgage holder after default is to take title to a property by foreclosing combined with a rent-to-own arrangement being entered into with the borrower. The borrower would than become a tenant until they are in position to buy-back the property. As market rental rates are usually substantially higher than the monthly interest payment, this can be even more lucrative than holding the mortgage and ensures that stable and sustained cash distributions to investors are maintained.

However even mortgage investments do have risk associated with them, and the way to reduce this risk to a minimum is professional underwriting and diversification. Understanding the risks associated with mortgages is when the expertise of the management team at EMIC will benefit our investors. Investors gain access to professional underwriting expertise, knowledge, perspective and the diversification required for successful mortgage investing. EMIC is a highly focused business – our guiding management objective is stable and sustainable monthly cash distributions to our investors. EMIC is appealing for investors who seek a monthly cash flow, knowing their investment is diversified and secured by tangible assets. In short, your relationship with EMIC is focused and based on one common goal – your financial success.