Mortgage investing relies on two things to protect capital: Quality of the borrower and quality of the property. We factor in both as part of our underwriting process to manage the risk of capital losses from arrears (borrowers not making payments) and losses (not recouping our capital upon power of sale).

The typical borrower well suited for  Perch Capital has strong credit and sufficient income to make the payment, but needs additional short-term financing. Common scenarios include:

- Renovation financing for a project that will be completed in less than 6 months
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- The sale of their home falling through, and a need to bridge the down payment on a purchase they’ve already committed to
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- Retaining a low interest rate on an existing mortgage

While the reasons for needing short-term financing will vary, to mitigate risk, Perch Capital looks for a clear and viable exit strategy within 12 months.

To get started, submit your interest and choose your preferred investment approach. You’ll receive additional information and be able to discuss the opportunity with your wealth advisor, if you use one.

There are two key advantages to investing in Perch Capital.

1. Technology: We can efficiently service a larger portfolio while keeping operational costs much lower compared to other mortgage funds. This enables us to pay a larger return.

2. Comprehensive risk management: We consider the whole borrower profile in its entirety, in addition to the property value. This gives Perch Capital a more accurate assessment of the borrower’s potential to default. Most private lenders strictly lend on property value, which we believe forms an incomplete picture.

3. Better risk-adjusted returns: Our portfolio composition is comparable to our competitors, but our technology enables us to better price and manage risk. In addition to a lower risk profile, we pay distributions that are roughly 2% higher than competing funds.

Yes, you can choose to invest in Perch Capital through a non-registered or registered account. This includes an RRSP, TFSA, RRIF and RESP.

If you have an existing wealth advisor, please ensure their firm is a registered Exempt Market Dealer. They will likely be able to access Perch Capital through FundServ, NEO or direct subscription. Your wealth advisor must contact investors@perchcapital.ca to receive the subscription agreement. If your wealth advisor is not part of an Exempt Market Dealer, please contact us.

Yes, but the maximum amount you are able to invest will be based on your eligibility. The mortgage fund has a minimum investment of $10k.