Mortgage Investments

“There are old investors, and there are bold investors, but there are no old bold investors." — Howard Marks

Our Investments
Foremost With Investors

Foremost has 35 years of experience in the industry and has been managing pooled mortgage funds for investors since 1991. We provide qualified investors the opportunity to invest in high-quality alternative mortgages through our well-established mortgage funds, Foremost Mortgage Trust, which holds primarily first mortgages, and Foremost High Yield Mortgage Fund, which holds primarily second mortgages.  Investors have the ability to choose their risk level by determining how much additional risk they are willing to take, compared to most competitors who have only a single fund, and choose the amount of second mortgage investments for you. This is just one of the many ways Foremost is putting clients first and offering superior flexibility and service.

Foremost Mortgage Trust (FMT)

Foremost Mortgage Trust was launched in 2006 through the amalgamation of three existing mortgage funds managed by Foremost Financial and is available to Accredited Investors in Ontario. The Trust holds predominantly first mortgages in specific geographies in Southern Ontario, with an emphasis on financing residential infill constructions projects in the GTA. FMT focuses on protecting investor principal through diversification (150+ mortgages in the portfolio) and conservative loan-to-values (max of 75% for any single loan / weighted average below 55%).  FMT offers monthly distributions and investors have the option to have these automatically reinvested or to be deposited in their bank account. The trust can be held in registered accounts, such as RRSPs, RIFs, and TFSAs.

FMT Key Characteristics

  • $219M / $271M Total Assets (Trust / Firm)
  • $191M Investor Capital
  • 126 Number of Loans
  • 53.8% Weighted Average Loan-to-Value (LTV)1
  • $1,802,522 Average Loan Size
  • 0.8 Years Weighted Average Term-to-Maturity
  • 1% Management Fee
  • 90 days notice Redemptions
  • 2006 Inception
  • 6.9% Annualized Return Since Inception2

Annualized Returns as at March 31, 20222,3

ForemostS&P / TSXDEX-U
1 Year6.9%20.2%-4.5%
3 Years7.1%14.1%0.5%
5 Years7.4% 10.3% 1.6%
Annual Since Inception6.9%6.9%3.8%
Total Since Inception193.6%193.6%83.2%

$100 Invested in Foremost Mortgage Trust on January 1, 2006 (Vs. S&P/TSX Composite and Dex Universe Bond Index) 2,3

The Foremost High Yield Mortgage Fund (FHYMF)

The Foremost High Yield Mortgage Fund was launched in 2014 to hold predominantly second mortgages and is available to Accredited Investors in Ontario. The High Yield Fund is not meant as an alternative to the Foremost Mortgage Trust, or other first mortgage funds, but rather an addition to a core holding of first mortgages. The High Yield Fund is meant for investors who are willing to accept a higher level of risk, through the addition of second mortgages, to potentially increase their return. The goal of the High Yield Fund is to give investors the opportunity to choose the risk level that is right for them, compared to typical mortgage funds which hold both first and second mortgages in the same fund. Like Foremost Mortgage Trust, The High Yield Fund focuses on financing residential infill constructions projects in the GTA.

FHYMF Key Characteristics

  • $20M / $271M Total Assets (High Yield Fund / Firm)
  • $20M Investor Capital
  • 22 Number of Loans
  • 60.4% Weighted Average Loan-to-Value (LTV)1
  • $967,214 Average Loan Size
  • 1.2 Years Weighted Average Term-to-Maturity
  • 10% Management Fee (of Net Income)
  • 180 days notice Redemptions
  • 2014 Inception
  • 8.9% Annualized Return Since Inception4

Annualized returns as at March 31, 2022 4,5

FHYMFS&P / TSX
1 Year8.2%20.2%
3 Years8.4%14.2%
5 Years8.9% 10.3%
Annual Since Inception8.9%7.8%
Total Since Inception89.7%75.9%

$100 Invested in Foremost High Yield Mortgage Fund on September 15, 2014 (Vs. S&P/TSX Composite)4,5

Investors FAQ’S
Foremost in Answers

A typical investor in the Trust is an Accredited Investor in Ontario who is either:

  • An investor seeking an alternative to bonds for the fixed-income component of his / her portfolio; or
  • A retiree seeking relatively consistent monthly income; or
  • An investor holding Trust units in a registered plan, and reinvesting the distributions for tax-sheltered compounding.

A typical investor in the High Yield Fund, is a more sophisticated and experienced mortgage investor who is looking to add second mortgage exposure to a core investment in first mortgages. These investors are looking for increase returns and are willing to accept increased risk compared to an investment in Foremost Mortgage Trust alone.

At present, the Trust and High Yield Fund is currently available only to Accredited Investors residing in Ontario. We have no minimum required investment amount.

In the normal course of business redemption, requests will be satisfied within 90 days for the Trust and 180 days for the High Yield Fund. Please refer to the Offering Memorandum for each fund for full details on the redemption terms.

Units of Foremost Mortgage Trust can be held inside a range of registered retirement plans, such as RRSPs, RRIFs, IPPs, LIRAs, TFSAs, etc. To find out if it can be held in your existing registered account, please contact us.

Units of the Foremost High Yield Mortgage Fund are NOT currently eligible for registered accounts.

Yes, unit-holders in both funds can participate in the distribution reinvestment plan (DRIP) to reinvest the monthly distributions by acquiring additional Trust units in lieu of cash.

Distributions are generally taxable as interest income in the year received, regardless of whether or not the units are reinvested.
*Foremost does not provide tax advice, so please consult your own tax advisor.

Foremost Mortgage Trust management fee equal to 1% of the Trust’s assets and has no performance fee.

Foremost High Yield Mortgage Fund has no management fee and has a performance fee equal to 10% of income earned by the fund.

Investors currently receive account statements by mail quarterly or by email monthly. In addition, Foremost, as manager of the Trust and High Yield Fund, provides comprehensive quarterly reports to unit-holders. These report provides key updates and also include the unaudited financial statements for the quarter. In addition, a comprehensive confidential summary detailing all of the mortgage loans in the portfolio at quarter end is included.

Yes, the both mortgage funds are audited annually, and the current auditors are Ernst & Young LLP.

If you have any additional questions or want to learn more about the Trust, please click here

Check Your Eligibility Now!

    Do you qualify for Foremost's investments?

    Would you be considered to be an Accredited Investor (as defined under the Canadian Securities Administrators National Instrument 45-106):

    • an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that before taxes, but net of any related liabilities exceeding $1,000,000; (or)
    • an individual who, either alone or with a spouse, has total net assets of at least $5,000,000; (or)
    • an individual whose net income before taxes exceeded $200,000 in each of the 2 most recent calendar years or an individual whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the 2 most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year.

    To read a detailed list of all possible exemption definitions, please visit the Ontario Securities Commission (OSC) website.

    Excellent!

    The next step is to be in contact with us to confirm if you are an accredited investor, please contact:

    Thank You for Your Interest!

    We've included only the most commonly relied upon Accredited Investor or Eligible exemptions; therefore, we encourage you to get in touch with us to review other ways you can qualify to invest with Foremost.