Achieve Your Goals through direct real estate mortgage lending
The Alicorn Advantage
What sets Alicorn apart is our deep expertise, focused specialization, and unwavering integrity. Our team brings advanced financial education, including Chartered Professional Accountant (CPA) designations, along with over 20 years of experience in both banking and Mortgage Investment Corporations (MICs), across residential and commercial lending. Unlike general mortgage brokerage, we specialize exclusively in private mortgage lending. This singular focus allows us to provide expert insights, perform thorough due diligence, and navigate complex risk profiles with confidence. Backed by a strong network of industry professionals and referral partners, we’re committed to delivering tailored, high-integrity solutions for every private mortgage file.
Direct Private Mortgage Lending vs other mortgage investments
1. Greater Control Over Investments
In direct lending, investors choose which mortgage files to fund, allowing for more control over risk level, property type, borrower profile, and return expectations. With a MIC/pooled funds, investors pool their funds and have no say in how the capital is allocated.
2. Higher Potential Returns
Direct lenders can often earn higher interest rates than what is typically paid out by a MIC/pooled funds after management fees and expenses. By bypassing the management layer, investors keep a larger share of the income.
3. Transparency
Direct lending provides full visibility into the mortgage deal — the property, borrower, terms, and risk factors. In a MIC/pooled funds, individual mortgage details are not always disclosed to investors.
4. Customized Risk Management
Investors can assess each deal and decide whether the risk-return profile fits their personal strategy. MICs/pooled funds offer diversified portfolios but limit an investor’s ability to avoid exposure to specific markets or borrower types.
5. Flexibility
Direct lending allows investors to be involved on a deal-by-deal basis, giving them the flexibility to invest only when they see suitable opportunities. MICs/pooled funds often require longer-term commitments and less liquidity.
Investment Commitment
Private mortgages typically have short terms, often 12 months or less, and are designed to meet short-term financing needs. Investors can fund these opportunities through personal or corporate sources, including cash, home equity lines of credit (HELOC), or registered accounts such as RRSPs and RRIFs.
Investment Return
Investment returns are directly tied to the risk profile of each mortgage file.
For lower-risk opportunities—such as 1st position mortgages with low loan-to-value (LTV) ratios—returns typically range from Prime + 4% to 5%.
Higher-risk files, including 2nd position mortgages, higher LTVs, or properties in rural locations, generally offer returns in the range of Prime + 6% to 7%.
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If you have any other queries, feel free to reach out to us. Our knowledgeable team is here to help!