Why Invest in Mortgage Funds Through Registered Accounts?

1. Sheltered Income from Consistent Distributions

Morrison Financial’s Mortgage Income Funds generate steady income through interest on secured mortgage loans. When held:

• In a TFSA, this income is completely tax-free, even when withdrawn.
• In an RRSP or RRIF, taxes are deferred until funds are withdrawn—potentially when you’re in a lower tax bracket.
• In an RESP, earnings grow tax-free and withdrawals are taxed in the hands of the student, often resulting in little to no tax payable.

This makes registered accounts an ideal vehicle for our funds’ monthly income distributions.

2. Compound Growth Through a Dividend Reinvestment Plan (DRIP)

One of the most powerful wealth-building strategies is compound growth, and Morrison Financial offers a Dividend Reinvestment Plan (DRIP) that allows investors to reinvest their monthly distributions back into the fund.

When used within a registered account, this approach has two key benefits:

• Tax-Free or Tax-Deferred Compounding: In a TFSA, reinvested income grows tax-free. In RRSPs and other tax-sheltered accounts, compounding occurs without immediate tax impact.
• Accelerated Wealth Accumulation: By automatically purchasing additional units of the fund each month, your investment base grows steadily, allowing future distributions to be calculated on an increasingly larger amount.

This strategy is especially powerful over the long term and can significantly enhance portfolio value while requiring no active management on your part.

Use our Compound Interest Calculator to see how your investment can grow over time.

3. Capital Preservation + Tax Efficiency

Our mortgage funds are built on conservative lending principles, focusing on first-position loans with low loan-to-value ratios. For investors seeking low-volatility, fixed-income alternatives with capital protection, placing these within a registered plan offers the best of both worlds: reliable returns and tax savings.

4. Portfolio Diversification

Private mortgage investments provide exposure to a unique asset class that behaves differently than stocks or traditional bonds. Holding our funds within your registered plan adds non-market correlated income to your retirement or savings portfolio, increasing diversification and reducing overall risk.

Getting Started is Simple

Morrison Financial’s Mortgage Investment Funds are eligible to be held within most Canadian registered accounts. We work closely with registered account trustees and custodians to make the process seamless.

If you’re looking to:

✔ Maximize your tax efficiency
✔ Add stable income to your portfolio
✔ Reinvest income for compounded growth
✔ Protect your capital
✔ Diversify beyond traditional markets

…investing in our Mortgage Income Funds through your registered account—especially with a DRIP strategy—may be the ideal solution.

Ready to Learn More?

We’d be happy to walk you through the process, share performance data, and help determine how Morrison Financial can support your investment goals—inside or outside of a registered plan.

Morrison Financial is one of Canada’s longest-standing private real estate finance firms. During its 38 years in business, Morrison Financial has advanced over $1.6 billion in loans. Morrison Financial operates two mortgage income funds which invest in a diversified portfolio of short-term residential development projects across Ontario, and its trust units are eligible to be held in registered accounts. Morrison Financial has retained Belco Private Capital as its exempt market dealer.

Contact us to schedule a time with one of the dealing representatives to determine whether this investment is suitable for you.

Disclaimer: This article is for informational purposes only and does not constitute investment or tax advice. Please consult your financial or tax advisor to determine what’s right for your situation.