Common Sense InvestingWhat is a Syndicate Mortgage?

A Syndicate Mortgage is a Mortgage Investment which gives you protection on your principal while paying you a rate of interest substantially higher than what you’ll make from your GIC or mutual fund. With a Syndicate Mortgage, it is typical for you to join with others in a syndicate to lend to profitable large scale real estate developments in Canada.

The features of the syndicate Mortgage as an investment are somewhat similar to those of a GIC or Canada Savings bond. It has a predetermined interest rate and fixed term usually between two to four years in most cases. They can be held in RRSPs and all other registered accounts and are held at Financial Institutions such as B2B Trust and Olympia Trust.

Investing in a syndicate mortgage is a licensed financial transaction, which must be underwritten by a Mortgage Agent regulated by the Financial Services Commission of Ontario (FSCO). It also requires a lawyer to close the mortgage investment and register the charge on property at the land registry on behalf of the lenders.

RRSP investing in mortgages is not a new thing. It has been around for years now but due to the high cost and the lack of simplicity in this type of investing it has been discouraged. However, with clients not faring well with their portfolios and many of them looking for more secure alternatives the syndicate mortgage offers an attractive solution.

RRSP mortgage investing is much easier than you think. When using your RRSP or other registered funds to invest in a syndicate mortgage, it is always secured against PRIME REAL ESTATE in Canada. The security as evidenced by real property

Using your RRSP for Mortgage Investing

Returns Security

• You receive a solid fixed interest for the term typically 7-8 % annually.

• There is also a bonus paid from profit usually 4 % per year.

• Interest is paid every 90 days to provide liquidity.

• Your principal is fully secured by a lien registered against the development at the land registry office.

• Loan to Value is typically between 50-75 % of Certified Appraised Value.

• In cases where Loan to Value is approaching 75 % other collateral may be assigned to further safeguard the interest of the lenders.

• General Security Agreement with Developer.

• Your money is on title as a mortgage, just like a bank mortgage when you buy your home. All funds are handled in a trust by your appointed trustee, lawyer and mortgage broker.

• It’s like you and your RRSP become a bank, and the real estate development borrows the money from you.

• This is a predictable, proven and measurable way to grow your retirement.

• You can use it to replace all your losing investments and rebuild lasting wealth.

• Because this is set-up as an RRSP, your interest and profits from this mortgage are sheltered from taxes, just like any other RRSP.

• With a Syndicate Mortgage there are no units or shares to buy and there are no stock market fluctuations to deal with.

Date Description % Principal Interest

Jan 01 Principal $100,000.00

Year 1Year 1Year 1Year 1Year 1

April 01 Investment Return 2% $2,000.00

July 01 Investment Return 2% $2,000.00

October 01 Investment Return 2% $2,000.00

January 01 Investment Return 2% $2,000.00

Year 2Year 2Year 2Year 2Year 2

April 01 Investment Return 2% $2,000.00

July 01 Investment Return 2% $2,000.00

October 01 Investment Return 2% $2,000.00

January 01 Investment Return 2% $2,000.00

End of Project

Profit

8% $8,000.00

Total Return 24% $24,000.00

Principal of $ 100,000 is returned to lender at the end of two years. Principal of $ 100,000 is returned to lender at the end of two years. Principal of $ 100,000 is returned to lender at the end of two years. Principal of $ 100,000 is returned to lender at the end of two years. Principal of $ 100,000 is returned to lender at the end of two years.

* Investment Return Schedule based on a two year term project at 8% annually. Interest paid quarterly with a bonus of 4 % /per annum at the end of the two year term.

Investment Return Schedule

Advantages of using your RRSP for Mortgage Investing

Lally Homes & Lally GolfThe "LALLY" family and Lally Homes, are modular, log and custom home builders building quality, energy-efficient residential homes and specializing in adult lifestyle golf retirement communities. If you are looking to build your dream custom environmentally-friendly home, Lally Homes is the Home Builder for you. Lally Homes prides itself in building all its homes to CSA standards, meeting or exceeding energy star ratings and using green technologies.

Lally adult golf retirement communities provide beautiful, environmentally-friendly housing filled with scenic views, golf, tennis, hiking, boating and swimming, in addition to convenient access to many desirable amenities including hospitals and shopping centres.

Martin Wood Resort & Golf Club is located on the

shores of beautiful Benoir Lake, nestled in a

spectacular setting amongst the Canadian Shield

hills and minutes from the south access road to

world famous Algonquin Park in the beautiful

Haliburton/Harcourt area.

This spectacular 800 acre site offers everything in

a breathtaking setting. From golfing, fishing,

boating, hiking and nature walking in the summer

time to snowmobiling on fully groomed trails,

cross-country skiing, ice fishing and Tobogganing

in the winter, this property is truly an all season,

recreational destination. A major snowmobile trail

runs directly by the property.

Martin Wood Golf Course is set in the hills located

across the road from the hotel. The course is a

6108 yd., par 70 challenging layout with each hole

designed to give the golfer a feeling of being the

only one or group on the course. There are some

great undulations to this course that offers

breathtaking views and vistas form different tee

boxes and greens.

Visit www.martinwoodresort.com to review

pictures and the master plan associated with this

property.

Current Offering:

Martinwood Resort and Golf Course

Project Description:

Investors can participate directly in the 78 lot lifestyle community development that will expand the successful Martinwood Resort property.

Total Raise: $1,600,000.00

Loan to Value: 50% LTV

Term: 36 months

Rate of Return: 9 % per annum

Minimum Mortgage:

$25,000- Cash, RRSP, RIF, LIRA & LIF eligible