Stability and Certainty for Your Retirement

TORONTO, Ont. — With an uncertain economy and relentless market volatility, saving for retirement can be a daunting prospect for most Canadians.

While an estimated two-thirds of Canadians are making regular contributions to RRSPs for retirement, there are genuine concerns that they are not saving enough to maintain their lifestyle. The volatility of financial markets has revealed that there are periods of good returns during a bull market, but the valleys of a bear market can be very deep and low.

“When it comes to saving for retirement, Canadians need their money to work as hard for them as they work for it,” says Peter Natyshak, Executive Vice President of FMP Mortgage Investments. “When the financial markets falter, you can actually lose money on your investments. But there is stability and predictability in a syndicate mortgage, where your money is secured against the value of the land and not a variable share tied to the markets.”

In order to diversify their financial portfolio and protect their capital from the volatility of the financial markets, an increasing number of Canadians are using their RRSPs and TFSAs to invest directly in Canadian real estate through a syndicate mortgage.

A syndicate mortgage is where several lenders combine funds to provide mortgage financing for development projects. The syndicate mortgage loan moves as one funding instrument but each lender is individually registered and secured directly to the land, which turns into direct collateral against a real asset.

Syndicate mortgage loan terms range from two to five years depending on the project. A typical return is 8% annually of non-compounded interest.

FMP’s clients recently exited two real estate developments in Toronto and Oakville. A project exit is the maturity of the loan term and the successful return of lender principal and accrued interest. These project exits illustrate the value of the syndicate mortgage.

King Charlotte, a 32-storey condominium project in downtown Toronto, developed by condo-king Brad Lamb, is one of the newest additions to Toronto’s ever-expanding skyline. Syndicate mortgage lenders earned an annual return of 8% or 48.69% over the six year period.

Bronte Crossing, a planned commercial development in Oakville by Kingridge Developments, where investor lenders earned an annual return of 8% or 12% over the eighteen month period.

According to Building and Development Mortgages Canada, syndicate mortgage lender returns have outperformed the TSX over the same time period 16 out of 17 times. Syndicate mortgage lenders continue to earn superior returns as on the bedrock of all assets: Canadian real estate.


For more information, please visit FMPmortgages.com. Connect with FMP Mortgage Investments on social media @FMPmortgages on Twitter, at FMPMortgages on Instagram, on LinkedIn and on Facebook