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Three decades of carefree summers for our investors

A 29-year track record of reliable income and strong returns.*

Summer has begun! Airlines are booked for family vacations abroad while the beaches here in Ontario will host crowds of people. Cottages and campsites will see loved ones enjoying outdoor sports, campfires, and quality time. That’s what summer is all about – resetting, clearing our heads and choosing how we want to spend our valuable time and energy – whether that’s through self-care or making memories with loved ones.

But how do we achieve a carefree summer in a world where we are overly scheduled and carrying the mental load of current events, money, and more specifically, investments? We know we should build for our future and our children’s futures, and that pressure can be stressful…but it doesn’t have to be.

Since 1994, our goal at Magenta has been to empower our investors to build for their tomorrows and achieve peace of mind by applying a conservative portfolio strategy to deliver reliable income and strong returns. As one of Canada’s largest and most established MICs, we have maintained our strong track record by financing quality residential real estate in carefully selected Ontario markets.

Continue reading for more information on our performance history, portfolio strategy, examples of financing and fund details, as well as contact information to start investing today!

Investing with Magenta offers:

• Regular income
• Liquidity
• Flexibility

Performance History

To learn more about investing with Magenta, e-mail [email protected].

Are you an Investment Advisor? Click here for more information.

How We Manage Our Portfolio

We have a risk-mitigated portfolio strategy. This means we know our markets intimately and we assess our borrowers and their homes thoroughly. We acquired this knowledge over three decades and evolved to become industry experts, assuring you and your family peace of mind.

• Stable Ontario markets
  We lend exclusively in Ontario with a focus on areas with a large public-sector workforce. Ottawa, Kitchener, Guelph, London and Kingston make up most of the geographical areas in the portfolio.
• Quality residential real estate
  Magenta mortgages are secured by highly marketable, quality residential real estate with a heavy overweighting of first mortgages secured by owner-occupied single-family homes.
• Short-term lending
  Typically, our borrowers sign for a one-year mortgage term. A one-year term allows for regular turnover, generating application and renewal fees. It also allows our rates to stay tied to prime so that Magenta returns are closely linked to market interest rates.
• Industry expertise
  We have a 29-year track record of delivering reliable and consistent returns.

Portfolio Composition:

Examples of Financing

Our Investor Relations Team

Our Investor Relations Team has combined experience of over 60 years in the mortgage and financial industry. Our collective experience includes strategic oversight, operational risk management and building and maintaining client relationships. We pride ourselves on our excellent customer service and operational excellence. This means you have easy access to not only speak with someone but receive best-in-class service and communication that reassures you every step of the way – from the moment you connect with us to the moment you feel like you’ve finally built for your tomorrow.

Big or small, every investment is a step toward your world of possibility. There is no better time to invest in Magenta than now. After all, 2023 is the year of Magenta.

To find out more on how you can invest in Magenta reach out to Allison Daines Allen at [email protected].

Allison Daines-Allen
Manager, Investor Relations
[email protected]
Direct: 613-699-4939
Toll-free: 1-888-267-1744

Investment Advisors:  

Click here for our subscription forms.

To learn more or speak with someone at Magenta reach out to Greg Sinclair or Daniel Werner:

Greg Sinclair
COO
[email protected]
Direct: (613) 699 4963
Toll-free: 1-888-267-1744

Daniel Werner
Account Manager, Investment Advisors
[email protected]
Direct: (613) 699 6485
Toll-free: 1-888-267-1744

*This article does not constitute an offer to sell securities and should be read in conjunction with the offering memorandum dated March 28th, 2023, available for download at this link or from our office. Investors should read the offering memorandum before investing. The foregoing historical performance achieved by the Corporation is not a guarantee of future results.

Founder & CEO Supports Trent University Nursing Students

Gavin Marshall, Magenta’s Founder & CEO, is also the leader of the Campaign for Momentous Change at Trent University. Gavin gifted $207,000 to Trent University with a significant portion supporting Nursing students who travel to remote villages in Central America to support vulnerable populations through health promotion and nursing education. This most recent gift brings Gavin and his wife, Susan Marshall, to $1 million in lifetime gifts. To learn more about Gavin’s involvement with Trent University, please visit: https://www.trentu.ca/news/story/36605.

Five Discussions to have with your Clients

As a new Mortgage Agent there is a lot of information to take in including processes and regulations. Learning how to conduct a thorough client interview and submit an application in good order is key to hitting the ground running. Successful Mortgage Agents provide full, detailed applications and clearly demonstrate that they know their client. How do you do that effectively? You ask the right questions, listen and take notes.

Here are 5 basic conversations to have with your client to help you gather the information you need:

Question 1: “Tell me about your credit history.”

Your follow-up questions should cover:

• How long they have had credit
• How they pay their credit, i.e. paying minimum payment or full balances
• Whether they have missed payments
• If they have co-signed any loans
• If they have had any collections, judgments, support payments, bankruptcies
• Whether they have filed/paid their income taxes and are they up to date on property taxes

Question 2: “Tell me about your income.”

Your follow-up questions should cover:

• All sources of income
• If they are self employed, how the business is set up, i.e. sole proprietorship or incorporated
• How long have they been at their current and previous jobs
• How stable and consistent is their income?

Question 3: “Tell me about your property.”

Depending on whether it’s a new purchase or refinance, your follow-up questions should cover:

• What type of property is it, i.e. owner occupied, rental, mixed use
• How long have they lived there
• Any improvements they have done or improvements needed
• Unique features of the home
• Known negatives, e.g. previous fire or flood damage

Question 4: “Tell me about your future plans and goals.”

Your follow-up questions should cover:

• How long they intend to stay in their home
• Whether they expect lump sums of income, e.g. work bonuses, inheritance etc.
• Any anticipated job changes
• Expected changes to family, e.g. newborn children or college costs

Question 5: “Tell me what’s important to you about your mortgage.”

Your follow-up questions should cover whether their priorities include:

• Flexible payment options
• Prepayment penalties
• Portable/assumable
• Lowest payment vs quickest payoff

An effective Mortgage Agent will take the time to have a thorough conversation with their clients, personalize the experience by asking the right questions, and then listen. Once you have a complete picture of your client’s situation, you can readily place them with the lender with whom they have the best fit.

Three tips to packaging your deals

Are you doing all that you can to package your deal for success?  Making your deal ‘lender friendly’ is the easiest and quickest way to get an approval.

Here’s what your lender wants to see:

• Documents up front. Sending most of the needed the documents right after you hit submit is one of the best things you can do to make your deal a success. This is especially true if you’re submitting a purchase.
• Clear broker notes. By telling the underwriter exactly what you’re sending and requesting exactly what you need on a submission, you’re more likely to get the answer you want.  What’s more, you’ll probably get a faster turnaround time too! Want a rate special? Ask for it! Have unusual income? Acknowledge it in the notes!
• Accurate details. Ensuring that there are no typos in the borrower names or property address is crucial to putting together a successful package. For instance, a typo in a postal code can mean your deal is rejected for being outside a lender’s preferred lending area.  The details definitely matter, so take the time to get them right!

Lender Top Tip:  Use the borrower’s ID to enter their details into your system. This will minimize any spelling or numeric errors.

Taking the time to cover these 3 steps for every deal should mean the pathway to a successful closing is smooth. Try it!

Three decades of carefree summers for our investors

A 29-year track record of reliable income and strong returns.*

Summer has begun! Airlines are booked for family vacations abroad while the beaches here in Ontario will host crowds of people. Cottages and campsites will see loved ones enjoying outdoor sports, campfires, and quality time. That’s what summer is all about – resetting, clearing our heads and choosing how we want to spend our valuable time and energy – whether that’s through self-care or making memories with loved ones.

But how do we achieve a carefree summer in a world where we are overly scheduled and carrying the mental load of current events, money, and more specifically, investments? We know we should build for our future and our children’s futures, and that pressure can be stressful…but it doesn’t have to be.

Since 1994, our goal at Magenta has been to empower our investors to build for their tomorrows and achieve peace of mind by applying a conservative portfolio strategy to deliver reliable income and strong returns. As one of Canada’s largest and most established MICs, we have maintained our strong track record by financing quality residential real estate in carefully selected Ontario markets.

Continue reading for more information on our performance history, portfolio strategy, examples of financing and fund details, as well as contact information to start investing today!

Investing with Magenta offers:

• Regular income
• Liquidity
• Flexibility

Performance History

To learn more about investing with Magenta, e-mail [email protected].

Are you an Investment Advisor? Click here for more information.

How We Manage Our Portfolio

We have a risk-mitigated portfolio strategy. This means we know our markets intimately and we assess our borrowers and their homes thoroughly. We acquired this knowledge over three decades and evolved to become industry experts, assuring you and your family peace of mind.

• Stable Ontario markets
  We lend exclusively in Ontario with a focus on areas with a large public-sector workforce. Ottawa, Kitchener, Guelph, London and Kingston make up most of the geographical areas in the portfolio.
• Quality residential real estate
  Magenta mortgages are secured by highly marketable, quality residential real estate with a heavy overweighting of first mortgages secured by owner-occupied single-family homes.
• Short-term lending
  Typically, our borrowers sign for a one-year mortgage term. A one-year term allows for regular turnover, generating application and renewal fees. It also allows our rates to stay tied to prime so that Magenta returns are closely linked to market interest rates.
• Industry expertise
  We have a 29-year track record of delivering reliable and consistent returns.

Portfolio Composition:

Examples of Financing

Our Investor Relations Team

Our Investor Relations Team has combined experience of over 60 years in the mortgage and financial industry. Our collective experience includes strategic oversight, operational risk management and building and maintaining client relationships. We pride ourselves on our excellent customer service and operational excellence. This means you have easy access to not only speak with someone but receive best-in-class service and communication that reassures you every step of the way – from the moment you connect with us to the moment you feel like you’ve finally built for your tomorrow.

Big or small, every investment is a step toward your world of possibility. There is no better time to invest in Magenta than now. After all, 2023 is the year of Magenta.

To find out more on how you can invest in Magenta reach out to Allison Daines Allen at [email protected].

Allison Daines-Allen
Manager, Investor Relations
[email protected]
Direct: 613-699-4939
Toll-free: 1-888-267-1744

Investment Advisors:  

Click here for our subscription forms.

To learn more or speak with someone at Magenta reach out to Greg Sinclair or Daniel Werner:

Greg Sinclair
COO
[email protected]
Direct: (613) 699 4963
Toll-free: 1-888-267-1744

Daniel Werner
Account Manager, Investment Advisors
[email protected]
Direct: (613) 699 6485
Toll-free: 1-888-267-1744

*This article does not constitute an offer to sell securities and should be read in conjunction with the offering memorandum dated March 28th, 2023, available for download at this link or from our office. Investors should read the offering memorandum before investing. The foregoing historical performance achieved by the Corporation is not a guarantee of future results.

What is a MIC?

A MIC (Mortgage Investment Corporation) is an investment fund where investors pool their money to lend to borrowers as private mortgages. MICs are commonly used in Canada as a form of real estate investment.

When investors pool their money, they are purchasing shares, which creates an alternative fixed-income investment (fixed income securities pay investors a fixed or defined amount on predetermined dates).

MICs were created as a result of Section 130.1 of the Income Tax Act, a federal statute, to allow investors to invest in a pool of mortgages.

• Shareholders invest their capital into the MIC (the Fund)
• The MIC may also borrow money from the banks in the form of loans (different MICs have different agreements with banks);
• The MIC uses investor capital and the loan from the banks to fund the Mortgage Portfolio; meaning the money within the Fund is loaned out as mortgages to borrowers;
• When the borrower begins to make their mortgage payments, the interest and fees, are pooled back into the Fund;
• The MIC pays its shareholders their dividends and repays the loan interest to the banks.

Regulatory Requirements

MICs are subject to regulatory requirements and oversight, ensuring compliance with securities laws and investor protection. In Ontario, the Ontario Securities Commission is the regulatory body responsible for the management and operation of MICs. The Income Tax Act requires mortgage investment corporations to distribute 100% of net income, as verified by independent audit, to shareholders by way of dividends. Typically, MICs are also overseen by a Board of Directors, responsible for strategic oversight.

Choosing the Right MIC

Choosing which MIC is right for you is not as simple as who has the highest return on investment (ROI). It’s important for investors considering a MIC to carefully assess the portfolio composition, the MIC’s track record and its mortgage underwriting process. To learn more about choosing the right MIC for you, read here. It is also strongly recommended that investors assess their own overall risk profile before they choose to invest in a MIC. Consulting with a financial advisor or professional is beneficial to the investor in order to understand the specific details and risks associated with a particular Mortgage Investment Corporation.

About Magenta

Since 1994, our goal at Magenta has been to empower our investors to build for their tomorrows and achieve peace of mind. Magenta has delivered strong returns and reliable income to our investors while safeguarding capital by applying a risk-mitigated portfolio strategy. The portfolio is constructed of residential, primarily first mortgages located exclusively in carefully selected Ontario markets.

Investing with Magenta offers:

• Stability
• Regular income
• Liquidity
• Flexibility

Our team of experts will work with you every step of the way to keep you informed and assist you with investment information so you can determine what best suits your needs.

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Open Term Versus Closed Term Mortgages: Know What Works for You

There are many things to consider when your mortgage is coming up for renewal. As the maturity date approaches, your renewal paperwork will arrive and you will probably be offered the option of opting for either an open term or a closed term.

Confused as to what the difference between the two might be?  Here is a breakdown of what each type of term involves:

Open terms
Open terms always have a higher interest rate as it expected that the mortgage will be paid out on or before the maturity date.  30 days’ written notice is generally required in the event of full or partial pre-payment.  A bonus is calculated on a per diem (per day) interest basis will apply in the event that written notice of less than 30 days is provided (e.g. 15 days’ written notice –  bonus equivalent to 15 days’ interest).  Notice must be in the form of a written request from the mortgagor’s solicitor, a title insurance company, or a financial institution, specifying the amount and date of the prepayment.

Closed terms
Closed terms receive a lower interest rate, but it is expected the mortgage will remain until maturity. In the event of pre-payment in whole or in part prior to the maturity date, a pre-payment penalty equivalent to the greater of: a) three months’ interest at the interest rate prescribed in the renewal agreement; or b) the interest rate differential based on the difference between the interest rate prescribed in the renewal agreement and the lender’s posted interest rate for a closed term that is the next shortest to the remaining term of the mortgage will apply. The pre-payment penalty will be calculated on the principal amount to be prepaid.

Choose the type of term that works best for you and return the completed paperwork to your lender. It’s a good idea to make note of the first date of your new payment and the new amount that will be debited from your account.

About Magenta Capital Corporation
Established in 1994, Magenta Capital Corporation (MCC) is one of Canada’s oldest and largest Mortgage Investment Corporation (MIC) managers.  MCC sources, underwrites and manages a portfolio of primarily residential first mortgages, secured by properties located in Eastern and Southwestern Ontario, two of the strongest, most recession resistant real estate markets in the country. MCC has a 24-year track record of generating superior returns for the shareholders of Magenta Group MICs.  MCC exercises oversight responsibility for the Magenta Group MICs in its capacity as General Partner of three limited partnerships, each of which is wholly owned by one of the MICs.

For more information, call us at 888-267-1744 or  visit Magentainvestment.ca.

The Mortgage Renewal Process: What to Expect During the Mortgage Renewal Process

The maturity date of your mortgage is fast approaching. The maturity of your mortgage gives you an opportunity to review your financial situation and make some decisions based on your financial goals and current situation.

If you discussed an exit strategy with your mortgage broker, you may be preparing to refinance with a new lender at a lower rate. If it suits your needs to renew your current mortgage, here are a few things to keep in mind both before and during the process:

Here are some tips to prepare for your renewal.

1. Ensure your account is current: If your mortgage account has fallen behind, make arrangements to bring it back into good standing. Work with your lender to find a solution that suits everyone.  Small changes, such as moving your monthly payment to a new day, can make a difference.

2. Keep your home insurance in good standing: If your insurer has changed since you originally obtained your mortgage, make sure you let your lender know!

3. Keep the home in a good state of repair with no deferred maintenance: Don’t put off those home maintenance projects, big or small. Touch up the paint. Mow the lawn. Make sure the roof, furnace, and electrical wiring are in good repair.

What to expect at renewal.

1. Renewal Options: Your renewal options will be sent to you in advance of the maturity date. Review the options you have been offered. You may wish to discuss your options with your bank or mortgage broker.

2. ‘Business-for-Self’ Income: If you are ‘business for self’ or have ownership in a business, you may be asked to provide confirmation that HST and Source Deductions are being remitted to Revenue Canada.

3. Second Mortgages: If you have a second mortgage you may be asked to provide a current first mortgage statement. Most lenders will either send these out annually, or provide a way for you to access the information on their website or via online banking.

4. Income Verification: You may be asked for updated income verification. Gather or print your two most recent pay stubs, just in case you need them.

5. Appraisals: You may be asked for a new home appraisal. Appraisals always make note of any instances of deferred maintenance that are noted during the inspection. This is why keeping on top of projects around your home is so important.

Following these tips can ensure your mortgage renewal goes as smoothly as possible.

About Magenta Capital Corporation
Established in 1994, Magenta Capital Corporation (MCC) is one of Canada’s oldest and largest Mortgage Investment Corporation (MIC) managers.  MCC sources, underwrites and manages a portfolio of primarily residential first mortgages, secured by properties located in Eastern and Southwestern Ontario, two of the strongest, most recession resistant real estate markets in the country. MCC has a 24-year track record of generating superior returns for the shareholders of Magenta Group MICs.  MCC exercises oversight responsibility for the Magenta Group MICs in its capacity as General Partner of three limited partnerships, each of which is wholly owned by one of the MICs.

For more information, call us at 888-267-1744 or  visit Magentainvestment.ca.