Our investment objectives are focused on capital preservation, strong and consistently high cash yields to investors and performance consistency.
AAMIC invests in MIC eligible Canadian mortgages, focusing primarily on short-term bridge financing needs not currently serviced by traditional real estate lenders, under a risk-adverse set of credit policies and Board oversight. All mortgages are either first ranking, a junior position in a first ranking mortgage, or a subordinated mortgage and secured by real property primarily of single and multi-family residential, office, retail, industrial and other commercial property located across Canada.
While our strategy is simple, its is based on the following fundamental framework and parameters: -
Credit Committee performs oversight on all mortgage investment activities based on a prudent suite of credit policies and procedures.
Dynamic yet rigorous quantitative analysis of borrowers and properties appraisals.
Loan-to-Value (LTV) of 85% on subordinated residential mortgages and 75% LTV on commercial mortgages and subordinated residential mortgages with property appraisals exceeding $800,000 provides a margin of safety.
Duration risk is minimized with maximum mortgage terms of 3 years but overall mortgage portfolio average term of 12 months or less.
Limits to reduce exposure on size, borrowers, geography and property types.