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Diversification: Built Into BTB MIC


For as long as Canadians have been investing, they have been given a simple piece of advice: “Diversify your investments”—in other words, don’t put your eggs in one basket. This old adage contains a powerful truth, and for the team at BTB MIC, it’s a key strategy for success.

Our active mortgage portfolio stretches across the Western Provinces and includes a number of borrowers nearly equal to the number of mortgages. With only one exception (where a single borrower holds two mortgages with the firm), each of these mortgage loans is backed by a unique borrower. Each borrower is legally bound to the terms of the mortgage, with funds secured by the respective property.

The number of mortgages under BTB MIC’s management demonstrates its commitment to ensuring diversity for the fund. At the same time, we remain focused on maintaining low risk-exposure for the mortgage pool. Risk exposure is commonly measured using the loan-to-value (LTV) metric. Our LTV target for the fund is to not exceed 65%; BTB MIC’s mortgage pool closed June at 63.8% LTV.

We are still seeing signs that strong demand in the specialty mortgage market will continue in the months to come, and there remains a high demand for short-term (one to two year) mortgages from a large number of Canadians. The success of the fund is largely linked to our process of due diligence on every mortgage. This process requires thoroughness and precision—two qualities that BTB MIC is proud to embody.

In preparation for the 2020/21 fiscal year, BTB MIC has established a scalable strategy that will be matched with a skilled team, consistent loan procedures and quality technology tools. This structure is bolstered by BTB MIC’s associations and partnerships with experienced mortgage brokers, attorneys, bankers, accountants, lenders, financial advisors and exempt market dealers.

A hearty thank you to all of you involved with BTB MIC, and most importantly to our shareholders for their continued commitment and support. Enjoy the rest of the summer!

About BTB MIC

The company's objective is to acquire and maintain a diversified portfolio of Canadian mortgages that preserves capital and generates strong returns, providing monthly dividends for its shareholders. This objective is achieved through prudent mortgage investment to qualified real estate owners, with a primary focus on short-term residential financing needs not currently met by traditional real-estate lenders. BTB MIC Mortgage Management Corporation is the manager of and portfolio advisor to the Company.

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