Benefits of a New Haven Mortgage Income Fund (1) Inc. Investment


Unlike investments in stocks or bonds, mortgage investments are secured by tangible assets that you can “touch and feel”. A New Haven mortgage will not exceed a prescribed percentage of the appraised value of the real estate security, commonly referred to as the “Loan to Value Ratio”, or LTV*.

For the purpose of risk comparison, consider a mortgage investment in the amount of $195,000.00. If New Haven Mortgage fundsa loan at say 66% LTV, requiring a borrower to grant a first mortgage on a real estate property appraised at $295,000.00.

Criteria (2011), New Haven Mortgage would only fund a loan at a maximum of 75% LTV, requiring a borrower to grant a first mortgage on a real estate property appraised at $267,000 or greater.

Let’s say that in two years the property value declined by 20%. The initial investment of $200,000 would still be intact. On the other hand, if your $200,000 mutual fund investment declined by 20% over the same period, you would lose $40,000 of your invested capital; resulting in a negative return on investment.

*See Offering Memorandum for details.

Low Volatility

Investing in the stock market is a zero sum game. Someone will win always at the expense of someone else’s loss. Unless the stock or mutual fund unit pays a high yielding dividend, all returns earned are a gamble. When a stock, mutual fund, or other similar investment vehicle is purchased, the investor is anticipating that someone else will want to purchase the investment from them at a higher price in the future. If this does not happen, the investor will earn no return on their investment; or potentially receive negative returns if the price per unit declines.

These are risks that are not in the investor’s control. Think about that.

Your investment is only worth what someone else thinks it is worth. As we have seen markets reel in recent times, it is clear that the markets are volatile in ways that often defy common sense and logic. Fear has driven people away from the markets. Without higher demand, there cannot be higher demand for shares and mutual funds. If people stay away from the stock market, investors will suffer.

The fear factor is also compounded by the demographic reality of retiring Baby Boomers who will be seeking, in very large numbers as they retire, to liquidate stock positions in favour of fixed return investments. Where there are a large number of sellers, you need an equally large numbers of buyers to keep stock prices at the same levels. You need even higher numbers of buyers to increase demand to see those prices go up. Where will those large numbers of buyers come from? Demographers will tell you: They don’t exist!

The time to exit the stock market has probably already passed. Prolonging your exit is very risky, and dependent on somebody else’s enthusiasm for the investments you no longer want to hold.

On the other hand, investors in the NHMIF have an investment in mortgages that have a clear and stated rate of return on investment at the time they are made. Investors and borrowers have clear understanding of the terms and the obligations. If the borrower defaults, interest and penalties accrue and if necessary, power of sale proceedings are undertaken to protect your investment.

A MIC investment provides a constant and predictable rate of return. In that sense, they are much like a Bank Term Deposit or a Government Insured Certificate (GIC), except the return on investment is much better.


Part of every good investment strategy should include different types of investments to reduce your exposure to the volatility associated with individual market segments, and accordingly protect your assets. NHMIF gives investors a passive way to participate in real estate mortgage investing while minimizing risk and preserving capital.

This makes NHMIF an ideal vehicle for retirees and others looking for steady, reliable passive income.

Professional Management

NHMIF has a team of experienced real estate professionals to guide and direct investment decisions. Day to day management is provided by New Haven Treasury Management Inc.; the management of which has decades of mortgage brokerage and lending experience.

All details of the mortgage investments are handled by these professionals. Investors are secure in knowing that their investment funds are being professionally managed and administered. This is an essential element to a truly “passive” investment.

Finally, we do not speculate. We Invest.

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