Frequently Asked Questions
HOW DOES LENDEASE DIRECT FIND MORTGAGES TO INVEST IN?
LendEase Direct utilizes its large network of broker contacts and underwriters to screen, approve and continually fund mortgages that have met the standards of the Board of Directors.
WHAT RISKS ARE ASSOCIATED WITH INVESTING IN A MIC?
Although Real Estate investing is typically foreseen as a safe investment, there are still mitigating factors such as economic volatility or unstable real estate markets that can increase the risk factor of investing. Though appraisals are required prior to LendEase Direct’s investment in mortgages, the appraised values may not accurately reflect the market value of the Real property. To reduce the possibility of non-eligible loans, LendEase Direct has invested in an experienced team of underwriters who ensure applications have met the specific Lending Guidelines outlined by LendEase Direct MIC.
HOW OFTEN DO INVESTORS RECEIVE INFORMATION ON LENDEASE DIRECT MIC?
Investors are provided an updated Statement of Account whenever a transaction is made. Furthermore, investors receive Audited Financial Statements at the conclusion of every fiscal year. Investors are encouraged to attend the Annual General Meeting to be informed of or pose any questions related to the audit and investments of LendEase Direct MIC.
WHAT TYPE OF MORTGAGES DOES LENDEASE DIRECT INVEST IN?
LendEase Direct primarily focuses on residential mortgage loans within metropolitan areas in Canada such as the cities of Toronto and Vancouver. LendEase Direct, on occasion, will invest in commercial mortgage loans if proven be a beneficial factor to their investment portfolios. The investment portfolios are comprised of 1st & 2nd mortgages on two year terms, renewable at the borrower’s discretion. LendEase Direct collects three months interest charge on mortgages being discharged prior to term end.
WHAT IS THE MINIMUM/MAXIMUM AMOUNT AN INVESTOR IS ABLE TO INVEST?
Investors may begin investing with LendEase Direct Mortgage Investment Corporation with a minimum investment of $25,000 (some exceptions may apply). For every additional purchase of shares by an investor going forward, will require a new subscription agreement form to be signed.
ARE SHARES TRANFERRABLE?
An investor’s shares cannot be transferred to another
party unless their investment term has ended and the funds are being transferred
back to the originating financial institution. Certain exceptions ma apply
strictly to investors to who meet the following circumstances:
1) Shares of an investor who is deceased may be transferred to another party
in accordance with their Will or the Executor of Estate with proof of
appropriate documentation
2) An investor may be allowed to transfer RSP/RIFs from one trustee to
another, only if the beneficiary is the same for both trustees.
WHAT IS THE PROCESS FOR REDEMTION OF FUNDS?
Investors are able to redeem their shares at an given time within the investment term, subject to penalty fees paid by the investor to LendEase Direct MIC. Redemptions are not permitted within the first 12 months. Redemptions made within 12-60 months will be subject to a penalty. Redemptions in excess of $100,000 will be facilitated within the maximum 90 day period.
WHAT TYPE OF MORTGAGES DOES LENDEASE DIRECT INVEST IN?
LendEase focuses on residential and commercial mortgage loans in the metropolitan areas within Canada. Ontario, Manitoba, Alberta and British Columbia are the four provinces that LendEase services. 1st and 2nd mortgages ae available on 6 months – 1 yr terms, renewable at the borrower’s discretion. 3 months interest will be charged on mortgages discharged prior to the end of their contractual term.