It’s National Financial Literacy Month (FLM), where the Financial Consumer Agency of Canada (FCAC) helps equip Canadians with practical tools and tips to manage their money in a changing world. Throughout November, the FCAC is discussing the ever-changing financial marketplace and the importance of checking up on financial health. At Magenta, our goal is
It’s National Financial Literacy Month (FLM), where the Financial Consumer Agency of Canada (FCAC) helps equip Canadians with practical tools and tips to manage their money in a changing world. Throughout November, the FCAC is discussing the ever-changing financial marketplace and the importance of checking up on financial health.
At Magenta, our goal is to connect people with opportunities to build a better tomorrow. This month, we’re furthering our goal by supporting National Financial Literacy Month and sharing resources dedicated to helping Canadians:
For this week’s theme, “What to do in a Financial Emergency”, we’re exploring how you can equip yourself to handle financial emergencies. Whether you’re an investor, a broker, or simply looking to refresh your financial literacy, we hope this article proves useful to you.
As much as managing debt and saving for the future can help to mitigate risk, events outside your control- from personal challenges like illness or loss of income to macroeconomic factors such as recession or rising interest rates- can still threaten your financial stability. It’s a difficult topic to grapple with, after all, no one likes to plan for the worst. But in the wise words of Benjamin Franklin, “By failing to prepare, you are preparing for failure.” He might not be on our 100$ bill in the Great White North, but we’re confident his advice still applies (and we don’t think Robert Borden minds sharing the limelight, either).
To prepare for a financial emergency, the FCAC recommends the following action plan:
You can take advantage of the action plan, free tools, and resources offered by the FCAC.
Financial emergencies can happen to anyone at any time. If you are facing financial issues, you can seek external resources to help you get through a financial emergency.
We’ve created a Financial Emergency Word Search of professionals, institutions, and trusted options you can turn to. Click on the image below to download and print a copy. Go ahead and try it out!
Did you find all the words? Click here to see the Word Search Answer Key.
The good news is, you’re not alone. Your financial institutions may be able to assist you when your financial health hits a rough patch- whether that’s through offering mortgage deferrals or mortgage relief or allowing you to skip a payment cycle on your credit card (a ‘payment holiday’). For more information on what financial lifelines are available to you in Canada, please visit the FCAC’s resource for managing your money in challenging times.
It’s National Financial Literacy Month (FLM), where the Financial Consumer Agency of Canada (FCAC) helps equip Canadians with practical tools and tips to manage their money in a changing world. Throughout November, the FCAC is discussing the ever-changing financial marketplace and the importance of checking up on financial health. At Magenta,
It’s National Financial Literacy Month (FLM), where the Financial Consumer Agency of Canada (FCAC) helps equip Canadians with practical tools and tips to manage their money in a changing world. Throughout November, the FCAC is discussing the ever-changing financial marketplace and the importance of checking up on financial health.
At Magenta, our goal is to connect people with opportunities to build a better tomorrow. This month, we’re furthering our goal by supporting National Financial Literacy Month and sharing resources dedicated to helping Canadians:
For this week’s theme, “Check up on your debt”, we’ll be discussing the importance of checking up on debt, how mortgages can help, as well as sharing helpful resources for debt management. Whether you’re an investor, a broker, or simply looking to refresh your financial literacy, we hope this article proves useful to you.
Debt history plays a critical role in forming an impression when interacting with financial institutions. Your ability, or lack thereof, to handle debt speaks volumes about you to prospective lenders who may consider the following:
Your financial history will determine how trustworthy you are in the eyes of a lender and is a key determinant of the interest rates you will pay, or even if your loan is approved in the first place.
However, not all debts are created equal. As industry professionals, we know that some debts are more important than others. Debt can be an indicator of a borrower’s ability to uphold their end of a mortgage. For example, when it comes to credit card balances, if you consistently pay down only the minimum amount each month, this can affect your credit score and interest rates accordingly. Minimum payments can be an indicator of an inability to pay down more. Furthermore, even if you consistently pay down your balance entirely, incurring high balances negatively impacts your debt-service ratio (your ratio of your debts to your income), and thus, your credit score in turn. As a rule of thumb, a high balance is considered somewhere in the range of spending over 75% of your limit.
On the other hand, payments made over the span of many years, namely mortgages and other kinds of instalment debt (such as vehicle loans), are often less significant factors. This is due to the debt relative to your income being spread out over a larger period of time. In general, the lower the interest rates and the more flexible the payment schedule for a debt is, the less impact it will have on how lenders consider your applications.
Debt consolidation is a technique in which one exchanges two or more smaller loans for a single larger one. you gain the financial power to pay off your smaller loans. By acquiring a long-term loan, such as a mortgage, you gain the financial power to pay off your smaller loans. A mortgage can help you:
Debt consolidation is one of many tactics to get a drop in your outstanding payments, but it’s only as good as the budget you set to help you pay off your long-term loans. To help you plan your budget, consider using an automated tool such as the Budget Planner offered by the FCAC. It’s fast, easy to use, and best of all: completely free!
Equipping yourself with the knowledge and resources to tackle debt can be beneficial to your overall financial planning. Below, we’ve compiled some options you can use to help you manage your debt:
To learn more about how to manage your debt and how to get help, please visit canada.ca/money.
You can also read the first FLM blog for information on how to get a pulse on your financial health.
November is National Financial Literacy Month, where the Financial Consumer Agency of Canada (FCAC) helps equip Canadians with practical tools and tips to manage their money in a changing world. This year, they’re discussing the ever-changing financial marketplace and the importance of checking up on your financial health. At Magenta, our goal is
November is National Financial Literacy Month, where the Financial Consumer Agency of Canada (FCAC) helps equip Canadians with practical tools and tips to manage their money in a changing world. This year, they’re discussing the ever-changing financial marketplace and the importance of checking up on your financial health.
At Magenta, our goal is to connect people with opportunities to build a better tomorrow. This month, we’re furthering our goal by supporting National Financial Literacy Month and sharing resources dedicated to helping Canadians:
Throughout the month, we’ll be discussing weekly themes related to managing your money in a changing world. In this article, we’ll explore what financial health is, and why it’s important, as well as share helpful tips and resources. Whether you’re an investor, a broker, or simply looking to better your financial health, we hope this article proves useful to you.
Financial health encompasses elements such as your savings, expenses, and insurance, especially if you have dependents who rely on your income for their living expenses and more. Much like the health of our bodies, a key component of financial health is how well our financial situation can react to emergencies and sudden changes in circumstances. Just as a healthy immune system has the resources to respond to infections without us noticing the symptoms, when we’re financially healthy, it means we have plans in place for when we’re hit with unexpected expenses or reductions in the flow of income. Knowing you have savings to turn to in hard times is a sign of financial health.
Health is about more than our immune response, however. It’s also a question of nutrition- everyone has different caloric intakes and unique needs that must be met to function effectively. Your personal finances are no different. Depending on your income and style of living, what your pocketbook needs to stay healthy might be different from someone else’s. That’s why it can be useful to perform self-diagnostics when it comes to your earnings and spending habits. To get a more holistic picture of your financial health, a few self-diagnostic questions can include:
Knowing where you’re starting is critical to making plans to improve your finances, whether that’s in learning what numbers you have to work with when budgeting, or noticing if your investment funds might be put to better work elsewhere.
Helping Canadians confidently make financial decisions in the digital economy is a key priority of the National Financial Literacy Strategy. The objective is to reduce barriers by supporting increased digital access and digital literacy.
An example of increased digital literacy could involve keeping a handle on recurring payments. Many products that were once one-time physical purchases have evolved into digital subscription services, and monitoring recurring payments is important to maintaining overall financial health. If you find your subscriptions difficult to track by hand, there are many free apps that can assist you, such as Billbot, Hiatus, PocketGuard, or Rocket Money, among others- but be warned that while their basic subscription tracking and budgeting functions are indeed free to use, many such apps offer additional services at a premium subscription fee of their own.
To learn more about how you can assess and improve your financial health, please visit canada.ca/money.
Be sure to tune in next week when we discuss debt management and debt payment!
At Magenta, we know there are many reasons why clients choose to take out second mortgages. For some, second mortgages are valuable financial management strategies for dealing with debt efficiently at lower interest rates. For others, second mortgages are an avenue for funding the acquisition or improvement of homes, paying
At Magenta, we know there are many reasons why clients choose to take out second mortgages. For some, second mortgages are valuable financial management strategies for dealing with debt efficiently at lower interest rates. For others, second mortgages are an avenue for funding the acquisition or improvement of homes, paying tuition for oneself or one’s family, or any one of life’s other major expenses.
Magenta offers second mortgages tailored to the needs of alternative borrowers whose unique circumstances may not be best served by other financial institutions. For instance, consider the small business owner looking to use home equity to fund their business. If that business has a significant cash component, it would lack the verifiable income needed to qualify for a bank loan. But with Magenta’s Stated Income Program for Second Mortgages, that borrower would only need to provide non-traditional income documents like business ownership, bank statements and other supporting documentation to qualify for a Stated Income Second Mortgage with up to 75% loan-to-value (LTV).
Consider also the property investor hoping to get a second mortgage on a rental property, but running up against the limits banks place on the number of rental properties a borrower can have. With a Magenta Second Mortgage for Rental Properties, not only is there a 100% offset on rental income with no maximum number of doors, there is up to 75% LTV on student rentals. Furthermore, Magenta offers 2-year terms in addition to traditional 1-year terms to better suit the needs of a property investor’s longer view.
Our solutions are designed not only to address your client’s short-term credit challenges but also to help them return to traditional lending channels as soon as possible. Keep reading to find out why Magenta’s mortgages are worth a second look:
We offer up to 50-year amortization, or interest-only payments, and balance our rates and fees in favour of smaller monthly payments, passing the benefits on to your client’s cash flow.
Magenta is proud to have recently added 2-year terms as an option on our second residential mortgages, in addition to our traditional 1-year term offerings.
If a borrower’s lending institution option falls through, our team will put in the work to help you meet your client’s deadline.
We capitalize lender fees and broker compensation, meaning the cost is added to the client’s principal and spread over the life of the mortgage.
Even clients with low or no documentation verifying their income are eligible for second mortgages through Magenta, subject to only a small increase in their starting fee.
We’ll match the maturity date of our second mortgage solution with your client’s first mortgage, simplifying their financial planning.
A selection of second mortgages funded this year (borrower and identifying property details have been removed):
* Small Centre refers to properties located in towns with a population of 1,000 or more within 45 minutes of one of our urban centres. Rural refers to properties with septic and well access within 45 minutes of one of our urban centres.
Second Mortgages are available in urban, small centre and rural locations throughout our lending areas. Please view our Google Map or speak with your Magenta representative to find out more.
Interested in what Magenta has to offer? Connect with our mortgage origination team, or click here to learn more.
A Mortgage Investment Corporation (MIC) is an investment fund where investors pool their money to lend to borrowers as private mortgages. By adding their money to this pool, an investor purchases shares in a MIC. This is an alternative fixed-income investment: a security which pays investors fixed amounts on predetermined dates.
A Mortgage Investment Corporation (MIC) is an investment fund where investors pool their money to lend to borrowers as private mortgages. By adding their money to this pool, an investor purchases shares in a MIC. This is an alternative fixed-income investment: a security which pays investors fixed amounts on predetermined dates. Most MICs then supplement the pool of shareholder funds by borrowing money from banks in the form of loans, though the precise arrangement varies from MIC to MIC.
This combination of shareholder funds and bank loans is then lent by the MIC to borrowers in turn. Collectively, the agreements of these borrowers to repay the MIC, together with the real estate that serves as these agreements’ collateral, compose the MIC’s mortgage portfolio. When the borrowers make their mortgage payments, any associated fees and interest are cycled back into the fund. This allows the MIC to pay shareholders their dividends, and if the MIC was themselves a borrower, the banks their interest.
MICs are subject to regulatory requirements and oversight, ensuring compliance with securities laws and investor protection. In Canada, MICs have been commonly used for real estate investment since 1985, when they were created as a result of Section 130.1 of the Income Tax Act. This federal statute allows investors to invest in a pool of mortgages.
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, a Board of Directors provides additional strategic oversight.
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 a corporation’s portfolio composition, track record, and mortgage underwriting process. To learn more, check out our “Selecting The Right Mortgage Investment Corporation” blog post. Similarly, ensure you assess your own overall risk profile before choosing to invest in a MIC. This could involve consulting with a financial advisor or professional to understand the specific details and risks associated with a particular company.
Since 1994, our goal at Magenta has been to empower our investors to build for their tomorrows and achieve peace of mind.
Investing with Magenta offers:
Magenta has delivered strong returns and a reliable income to our investors. We safeguard capital by applying a risk-mitigated portfolio strategy. We hand-pick our portfolio of residential, primarily first mortgages located exclusively in selected Ontario markets.
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A 30-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
A 30-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:
Performance History
To learn more about investing with Magenta, e-mail shareholders@magentainvestment.ca.
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.
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 shareholders@magentacapital.ca.
Allison Daines-Allen
Manager, Investor Relations
shareholders@magentacapital.ca
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
gsinclair@magentacapital.ca
Direct: (613) 699 4963
Toll-free: 1-888-267-1744
Daniel Werner
Account Manager, Investment Advisors
dwerner@magentacapital.ca
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.