The Challenge

Every day the term "baby boom" has more resonance. Coined to describe the increased birth rate following World War II, "boomers" now comprise the largest class of individual holders of wealth. This demographic is largely comprised of the offspring of immigrant or first generation Canadians who built businesses, purchased real estate and accumulated assets without debt. The passing of that generation has resulted in the largest transfer of wealth from one generation to the next in history. Their children, often educated professionals with little or no meaningful experience in investing capital, face the challenge of finding adequate investment opportunities with respect to such capital. In recent years interest rates have been historically low, making most fixed income investments such as GICs, T-Bills, and Bonds unattractive. In addition, this type of "passive" income is typically taxed at the highest marginal rates, further encroaching on the potential return of fixed income secured investments.

In response to this challenge, Owemanco helps Ontarians manage and grow their wealth. Through an expanding broker network, Owemanco sources, underwrites, syndicates and administers loans secured by mortgages on Ontario real estate. Owemanco now has Mortgage Agents in Ottawa, Brantford, Hamilton, Oakville, Burlington, Kitchener-Waterloo, London, Oshawa and north from Barrie to North Bay to provide local intelligence in the underwriting process and also to meet the needs of our investors in these areas.

What You Can Expect

All mortgages are unique, however our loans have many common features. The loans are typically for one or two year terms and are currently yielding to the clients between 8% and 10% per annum. There is generally a bonus for early prepayment of one month's interest per year of term. We charge an administrative fee of one-half percent (1/2%) per annum, which is added to the interest charged to the borrower. In addition, all fees to arrange the loan are paid by the borrower including brokerage, appraisal, environmental, inspection, and legal fees.

How To Become An Investor

Becoming an investor is simple. The initial step is to arrange a meeting at our Head Office in Toronto or with one of our agents, working throughout Ontario. Owemanco determines the needs and attributes of potential investors in terms of rate of return, risk, cash flow requirements, and degree of sophistication. Most loans are syndicated among two or more investors, and clients are encouraged to diversify their mortgage portfolio in terms of location, nature of property, and even rate of return and risk. For clients who wish to shelter interest income within their RRSP or RRIF, Owemanco works with Maple Trust Company. We have worked with Maple Trust for many years to save costs and expedite administration.

Your Peace of Mind

No investment is guaranteed, however Owemanco is conservative in its lending approach, always considering an 'exit strategy' prior to even committing to fund a mortgage. Although all mortgage investments contain some degree of risk, Owemanco's main goal is safeguarding principal, while maximizing the return.

Each mortgage loan is tailored to the level of risk tolerance and sophistication of the investor, ranging from the inexperienced and conservative individuals who rely on interest income every month, to experienced lenders with diverse asset portfolios who are more aggressive in their lending decisions. Investors do not invest in a 'pool' of funds which is spread over many properties, but rather in a loan which is secured by a specific property. All mortgages are registered in the name of Owemanco in Trust for the investors, and a Trust and Management Agreement provides additional security for investors. Finally, all of our loans are title insured affording coverage for fraud which is otherwise not covered by solicitors' errors and omissions insurance.

Owemanco administers every mortgage we arrange to ensure that interest payments are made in timely fashion and that property taxes and fire insurance premiums are paid up-to-date. We electronically collect mortgage payments from borrowers and directly deposit interest into our investors' accounts.

Sound Investment Decisions

As a licensed mortgage broker, Owemanco complies with the Mortgage Brokers Act of Ontario and an Investor's Disclosure Form is provided and completed by the client not less than 48 hours prior to funding a loan. In addition, copies of appraisals, agreements of purchase and sale, and where applicable, environmental reports are provided to investors to assist them in their investment decisions.

We look forward to meeting you and to a mutually successful relationship. Thank-you.

Click here to visit Maple Trust's web site where you can download a PDF of their Self-Directed RSP Application Form.
Click here to download Owemanco's standardized Disclosure Form and Participation Agreement.