Why Are International Investors Diversifying With Canadian Mortgages?


People will always need to purchase homes and the Canadian mortgage market is attracting plenty of attention from international investors. The market is mature, well-regulated and has quite a diversity of options. A mortgage investment corporation can help you diversify your portfolio with this lucrative asset.

“Why Is Canada Land So Popular?”

North American real estate has been well-developed, has not been damaged by wars and is quite well-regulated. Canada property prices are closely controlled by the real estate agents. In the United States, the market has gone through boom-bust cycles, partially because anyone can look up anyone’s home price online. This can create speculation and volatility which may damage the underlying mortgage market.

Canadians enjoy some of the highest incomes in the world and have some of the lowest foreclosure rates. Thus, international investors see Canadian mortgage investments as prime opportunities for rich profits. Canada mortgages are a good way to diversify holdings.

“Canada Mortgage Rates Are Low”

Very low mortgage rates in Canada have encouraged individuals to purchase their own homes. Mortgage lending enables homeowners to qualify for a home equity line of credit (HELOC) or remortgage. These mortgages are then repackaged into mortgage backed securities (MBS).

The MBS are then resold by a mortgage investment corporation giving you the opportunity to profit from the strength of the Canadian homeowner. These mortgage investments are available in different risk ratings, so you can diversify your portfolio.

“Diversity of Colourful Livable Canadian Cities”

Toronto, Montreal and Vancouver are just a few of the Canadian cities that are attracting numerous foreign buyers. The “quality of life” is quite high in Canada with Vancouver being rated as the #1 most livable North American city by the consulting firm Mercer. Mercer’s Gordon Frost said, “[q]uality of living continues to be high in Canada with a stable political environment and positive social benefits, offering a very desirable and safe place to live and work for residents and expatriate employees.”

Some like the classical look and feel of Montreal. Sotheby’s Quebec director of operations Sacha Brosseau recounted during the sale of a “$6 million house in Westmount” owned by a Middle Eastern family that “four out of the first six potential buyers were also non-Canadians.” Brosseau said, “Montreal is known for more quaint areas, very European feel, like Old Montreal with the cobblestones, horse and carriages.”

Of course, Toronto has received some of the most international accolades and awards as a truly cosmopolitan global environ. The following have rated Toronto #1 as the best city in the world for 2015: “The Economist,” “Metropolis,” PriceWaterhouseCoopers and Citi Foundation. There is always something to do in terms of sports, entertainment and work in the Greater Toronto Area (GTA).

“Healthy Canada Mortgage Lending”

As international investors pour into Canada, they increase the value, demand and prestige of the mortgage market. You can purchase mortgage backed securities to profit from the strength of the Canadian homeowner. Visit your mortgage investment corporation to find out how.

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