FAQs

We offer 1st and 2nd mortgages up to a loan to value of 80%. We lend on residential property located in urban and suburban areas in Ontario. We focus on properties that are highly marketable.

We deal strictly through licensed mortgage brokers and licensed agents in Ontario. There are reportedly over 10,000 mortgage brokers and agents in Ontario. These represent our external sales force; identifying and referring mortgages. RiverRock Management Inc. (The Manager) is retained to manage the mortgage portfolio. The Manager strictly manages the RiverRock MIC and does not broker mortgages for a fee.

In the province of Ontario the Financial Services Commission of Ontario (FSCO) licenses and regulates all mortgage brokers, agents and administrators. The Manager is a licensed administrator in Ontario. Additional information on FSCO licensing can be found here.

1. Real Estate Security: Mortgages purchased by the MIC are secured by Canadian Residential Real Estate. 2. RRSP / RRIF Eligible: Hold your RiverRock MIC in a self-directed RRSP or RRIF. 3. Superior Returns: Earn up to 7% per year compared with 2% on GICs 4. Professional Management: The Principals of RiverRock MIC have decades of mortgage & investment experience. 5. Diversification: Investors own a diversified portfolio of mortgage loans. 6. Regular Income: Investors receive their dividends on a monthly basis.

Although real estate investing is considered one of the safest investments, risks still exist in mortgage lending. All property investments are subject to elements of risk. Property value is affected by general economic conditions, local real estate markets, the attractiveness of the property to tenants, competition from other available properties and other factors. While independent appraisals are required before the corporation may make any mortgage investment, the appraised values provided therein, even where reported on an “as is” basis, are not necessarily always reflective of the market value of the underlying property, which may fluctuate. The MICs’ income and funds available for distribution to security holders would be adversely affected if a significant number of borrowers were unable to pay their obligations. Upon default by a borrower, RiverRock MIC may experience delays in enforcing its’ rights as lender and could incur costs in protecting its investment. To mitigate these risks, the experienced team of Underwriters at RiverRock MIC carefully review every application to reduce the possibility of non-performing loans. Furthermore, strict loan to value guidelines and a proactive approach to collections ensure enough equity is available to recover outstanding loan balances in case of foreclosure.

RiverRock MIC has a 12 month redemption period which commences from the month end of initial subscription. After the redemption period expires, an investor can withdraw their funds simply by advising us in writing so that a redemption notice received will be effective within 15 days of the end of the quarter following the quarter in which the redemption request is received. We also have a compassionate early redemption and death of shareholder policy which allows a surviving spouse to have the investment redeemed earlier than the normal maturity date. Please refer to Offering Memorandum for further detail.

For income tax purposes, the returns that our investors receive are treated as interest, not as dividends.

We are not an RRSP provider; we encourage you to talk to your RRSP provider who understands the processes and procedures. We do, however, have a business relationship with Olympia Trust Company who will open a registered account and permit account owners to hold RiverRock MIC shares in this registered account.

Our investors can choose to take advantage of our automatic dividend reinvestment plan (DRIP) and gain the benefit of compounding their return. Alternatively our investors can receive their monthly dividends by direct deposit to a specified account.

No. Our underlying security is the Canadian real estate property against which we have mortgage charges and, in most cases, the personal guarantees of the owners of the property.

RiverRock MIC focuses on residential properties in urban and suburban areas in Ontario that are highly marketable. RiverRock MIC’s clients are self-employed, new immigrants and borrowers with soft, poor or no credit. We mitigate the risk with our proprietary underwriting model.

The residential mortgage market surpassed $1.3 trillion dollars in 2016. It has been growing at an annual growth rate of 7% compounded every year for the last 10 years. The Banks and Trust Companies focus on the 80% of the market. Due to tighter restrictions by the regulators the Banks and Trust Companies have restricted their lending practices. This has created a larger opportunity for RiverRock.