- First, second or third mortgages
- First mortgage bonds
- Land lease communities
- Multi-family residential
- Self storage
- Seniors housing
Typically one to five years, but may hold longer-term mortgages as well.
Interest rates for these mortgages are determined by adding credit and liquidity spreads over the current yields of Government of Canada bonds with similar terms to maturities. BCI’s portfolio managers utilize a multi-factor risk rating model to assess credit risk levels on individual investment opportunities. The risk factors that are evaluated include: location; improvement(s) quality; tenant financial strength; borrower and covenantor’s financial strength; loan-to-value level; debt servicing ability; borrower’s experience.
Maximum 75 per cent loan-to-value
Mortgage agreements may also include additional security provisions such as: personal guarantees; corporate guarantees; letters of credit; pledging of additional collateral.
All mortgages require a property inspection, current market appraisal, and a current environmental audit.
Typical range $30,000,000 and higher
The Fixed-Term Fund typically requires three years of operating history as well as an acceptable level of leasing in place. No mortgages will be funded without a property inspection, building assessment, current market appraisal, lease reviews, and a current environmental audit.