These frequently asked questions and answers are provided for explanatory purposes only. They are not intended to be a complete description of Genesis MIC. For a complete description of Genesis MIC, please contact Gentai Capital Corporation.

1. What is mortgage?

A temporary and conditional agreement that stipulates the use of real property as collateral to a creditor for the guaranteed repayment of a loan.

2. What is equity?

The value of ownership built up in a home or property that represents the current market value of the house less any remaining mortgage payments

3. What is appraisal?

A market value estimate for a parcel of real estate that is made by a competent professional who is knowledgeable about local real estate prices and market trends for lending purposes

4.What is loan to value ratio?

The loan amount divided by the appraised value of the security pledged.

5. What is an interest only mortgage?

Mortgage that requires the borrower to pay interest only on the principal in monthly installments for a fixed period of time.

6. What is a second mortgage?

A type of subordinate mortgage made while an original mortgage (first mortgage) is still in effect

7. What is syndicated mortgage?

A mortgage offered by a group of lenders (called a syndicate) who work together to provide funds for a single borrower .Each lender’s interest is proportionate to the money they have lent to the borrower 

8. What is foreclosure?

The legal process that takes place when a borrower defaults on his or her loan and is deprived of the interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the loan debt.

9. Who is qualified to invest in Genesis MIC?

To purchase shares of Genesis Mortgage Investment, investors must qualify as “accredited investors”. To be eligible as such, investors must satisfy one of the requirements of the applicable securities legislation (found in our “Subscription Agreement” and “Offering Memorandum”)

10. When can I invest in Genesis MIC?

Shares can be purchased on an ongoing base at the sole discretion of Gentai Capital Corp. Interest will be calculated on the day the bank draft delivered. 

11. Can I hold shares in my registered account(s) (RRSP/RRIF/LIRA/LIF)?

Genesis Mortgage Investment Corporation shares are available for investment through registered account options in RRSP and TFSA . 

12.What is the price per unit?

Pursuant to the Subscription agreement and article of corporation, the purchase price is $1.00/unit.

13. When will distributions be paid?

A fixed amount of distributions from GMIC are paid quarterly, followed by a top-up distribution upon completion of the fund’s annual audit. Income distributions will be paid quarterly on the fifteenth day of every quarter, or the first business day following if the fifteenth falls on a weekend or holiday. Depending on the financial institution, the distribution may require an additional day or two to appear in your account. Dividends are deposited directly (via EFT) to your bank account each month, or via mailed cheque.

14. Can I reinvest my distributions rather than receive them in cash?

Yes. A dividend reinvestment plan (DRIP) is available to those who wish to purchase additional units of a fund instead of receiving a cash payment. This arrangement is most suitable for investors who are looking for the total growth of a portfolio rather than the income it generates, being most appropriate for investments held within registered plans (RRSP, RESP, etc.)

15. How can I withdraw when I need my money?

Units are retractable at the demand of unitholders with 30 days’ notice, subject to a retraction penalty ,details subject to the rules set out in the Offering Memorandum/Corporate Articles..

16. WHAT TYPE OF MORTGAGES DOES THE GMIC INVEST IN?

The Genesis MIC focuses on residential and commercial mortgage loans primarily in British Columbia,Alberta and Ontario. The pool of mortgage receivables are comprised of 1st and 2nd mortgages. All mortgages in the Genesis MIC have a one year term and are renewable at the lender’s discretion. The Genesis MIC usually earns 3 months interest penalties on mortgages paid out before the end of the term.

17. HOW IS MY INVESTMENT SECURED?

Genesis MIC’s investments are secured by valuable Canadian real estate ( primarily in great Vancouver area )and personal guarantees of mortgage borrowers.

18. ARE THERE ANY COSTS ASSOCIATED WITH INVESTING IN THE MIC?

No broker or referral fees are charged and 100% of your investment goes directly to the Genesis MIC .

19. Are the quarterly distributions taxable?

Distributions are fully taxable as interest income. T5 will be issued be the end of Feb.

20. How will I know how the Fund is performing?

GCC reports to investors on a quarterly basis similar to what a public company would provide to shareholders. This report summarizes the activities of Genesis MIC, including financial statements. The annual report, which includes audited financial statements, within 90 days of each financial year-end, which is Sept 3oth is also produced, and discussed during the annual investor meeting. For investor convenience, comprehensive and timely information is also available on our website at: www.gentaicapital.com.

21. WHY DOESN’T MY FINANCIAL ADVISOR RECOMMEND INVESTING IN A MIC?

Your Financial Advisor is most likely paid in one of two ways; by commissions when you initially purchase investments, or by trailer fees on investments he or she purchased for you in the past. Genesis MIC does not pay Financial Advisors fees to sell shares in the MIC. Therefore, your Financial Advisor has no financial incentive to recommend the MIC.

22. IS GENESIS MIC THE RIGHT INVESTMENT CHOICE FOR ME?

Investing in a MIC is not for everyone. Your current net worth, income needs and risk tolerance are just a few of the many factors to determine if this is the right type of investment for you. We would be happy to sit down with you to discuss your potential investment.

23. WHAT ARE THE BENEFITS OF GENESIS MIC INVESTING?

Real Estate Security: Mortgages purchased by Genesis MIC are secured by Canadian Real Estate.

Strong Returns: distribution 8.24% per year by Genesis MIC over the past four years

Diversification: Investors own a diversified portfolio of full secured mortgage loans.

Reliable Regular Income: Investors receive their dividends on a quarterly basis.

Professional Management with track record: The Principals of Genesis MIC have extensive and hands on experience in mortgage & investment, exceptional track record

Dreaming big with personal commitment: Gentai Capital determine to establish national wide financial branding with significant principles’ personal financial commitment.

RRSP / RRIF Eligible: Hold your Genesis MIC in a self-directed RRSP or TFSA.

 

24. Is Genesis MIC audited?

Yes, by KPMG

These frequently asked questions and answers are provided for explanatory purposes only. They are not intended to be a complete description of Genesis MIC. For a complete description of Genesis MIC, please contact Gentai Capital Corporation.