Frequently Asked Questions

Well-managed, financing-based investments can actually be more secure, especially if real estate values change. Financers don't have to be as concerned as owners do about possible value losses. As long as the financing opportunities are well-selected – and the borrowers can service the debt – the return is fixed over the life of the financing.

Diversification is about more than just the number of different investments you have. If your investments are all the same type, they're likely to respond to changes in market conditions in the same way. A portfolio should contain a mix of investment types – some with greater income-generating potential and others with greater growth potential – which will balance out performance over time.

There are five basic investment types: real estate, equities or stocks, bonds, mortgages, and "cash equivalents," such as term deposits. There are more specific investment options, but each of them fits into one of these basic types. Many people have a false sense of security because they have a lot of different specific investments – but they're not really diversified if all of their investments fit only one or two basic types.

Typically, a first-time ACIC investor will commit between $20,000 and $50,000. But there is a lot of variation. Many people invest only the minimum of $5,000 to start, while others will make a much larger initial investment. Most first-time ACIC investors increase their investments later.

No investment is completely risk-free, and ACIC is no exception to this rule. However, we have a very strong track record, and current outlooks for the Western Canadian economy, real estate markets, and interest rates all make us optimistic about ACIC's future performance.

ACIC can be an important part of an investment strategy at any stage of life, and our investors cover all ages. Many new investors are well into their retirement and find ACIC to be an effective way to put their assets to work for them, and they want to establish another income stream.

We have a geographically diversified pool of loans. The properties are found in major markets around the Lower Mainland and other regional markets across British Columbia and Alberta.

The current mix is roughly one-third commercial and two-thirds multi-unit residential. We are required to have at least 50% residential in our portfolio, but we maintain a higher proportion because residential properties are easier to re-finance.

We have never had a mortgage foreclose. This is a good indication of how rigorous our lending criteria are. And the fact that our investors have a shared interest in a diversified pool of assets would minimize the impact, even if a foreclosure occurred.

We are very careful about both who we lend to and what we lend for. We deal with a pool of highly experienced real estate entrepreneurs, who have proven abilities to locate and upgrade under-valued properties. We apply our own rigorous lending criteria to every potential investment opportunity, and we have never had a foreclosure on a mortgage.

Yes, and we address this by being very selective about who we provide mortgages to, and for what purposes. We look carefully at the underlying value of the property, and our borrowers typically provide additional security. This ensures that the financing we provide is adequately backed. We also regularly pursue first-mortgage financing opportunities.

Redemption is available quarterly. Our redemption policy includes some limits on the amount of redemption provided at any one time, but we have never had to invoke these provisions. As with most investments, a small redemption fee applies: 2%, which only applies to investments redeemed within the first 2 years from the investment date. After that, no redemption fees apply.

Investment advisors usually recommend only certain types of investments; they may not be qualified to recommend all types. They may also be influenced by sales goals and commission structures, or just not be aware of a particular option. At ACIC, we have focused on people who want to invest directly, rather than on the costly exercise of working through the various networks of advisors. We prefer the more personalized and long-term relationships this lets us establish.

ACIC’s shares are not sold on the open market and our share price has remained the same since the company’s inception. Our investors earn their returns from the regular income that the shares generate which is in contrast to some other investments, where the return depends on increases in share value.

No. Remember, with ACIC you're a lender not an owner, and there's really never a bad time to lend money if it's done right. Even a significant market correction will not necessarily affect the performance of well-selected financing-based investments.

If you own property, your financing costs go up and your returns go down when interest rates rise. But an ACIC investment makes you a lender and puts you on the other side of this equation. Higher interest rates would improve our long-term returns.

Yes. You will need to have a self-directed plan, and to be making a minimum investment of $20,000.

Mortgage investment corporations have a special tax status. As a result, Revenue Canada will deem your income from an ACIC investment to be interest income, and tax it accordingly. We issue T5s annually to all of our investors.