604-681-7772 | info@nationcapital.ca

Mortgage Investment Corporation Facts and FAQs

How long has Management of Nation Capital Corp been in business?

Management for Nation Capital is Royal International Financial Group Inc. It was incorporated
in July 2001 and has been in the mortgage brokerage and lending business ever since. Over $600
million in mortgages have been arranged and have been funded .

How secure is my investment?

All our mortgages are registered on the title of the property. We know the market, and the homes you drive by everyday. We lend based on the appraisal value done by appraisers approved by Nation Capital. Our maximum loan value ratio is set at 75%. Our mortgages have the same legal security as the mortgages from banks or other institutional lenders. All related legal work is performed by a lawyer or notary public for Nation Capital. There is no guaranty, however your investment will not fluctuate.

When can I purchase my share? What is the minimum investment?

Preferred shares can be purchased at the beginning of every month. Our minimum investment is $25,000, once the minimum investment has been made, additional shares may be purchased with a minimum increment amount of $10,000.

How long is my commitment? Can I redeem my shares at anytime?

Preferred shareholders are able to redeem all or a portion of their shares by providing Nation Capital with 90 days written notice before its fiscal year end. The fiscal year end of the Corporation is October 31. Redemptions of shares is subject to available funds in Nation Capital’s bank account and meeting statutory solvency requirements.  No penalties will apply for early redemption.

Who are the borrowers? What is the expected return on my investment? Is the rate guaranteed?

Borrowers are those who do not meet the narrow parameters of traditional lenders and the chartered bank
guidelines, despite an ability to manage timely payment, and equity in real estate as security. With
recent tightened lending rules being imposed on financial institutions by the federal government, many borrowers have turned to a MIC for alternative borrowing solutions. Industry trends are creating growth opportunities for non-bank lenders.

There is no guarantee on the return. Based on the experience and past performance by the management of Nation, it has been between 8% to 12%.

Are there any costs associated with investing in the Nation Capital?

No broker or referral fees are charged and 100% of your investment goes directly to the Nation Capital Corporation fund.

What risks are associated with investing in MIC?

It is a fundamental principle of investing that higher returns are typically associated with higher risk. An investment in a MIC is supported by the individual properties with which each mortgage is secured. Real estate investment has been considered one of the safest investments in Canada; however, the real estate market can be affected by factors such as: international and national economic variability, regional housing market fluctuations, government and legislative intervention and other uncontrollable factors. Nation Capital follows a very strict underwriting review process to reduce the risk of nonperforming loans. All properties in the MIC portfolio are valued by certified appraisers and must meet a very high acceptability standard. All properties have minimum equity requirements to ensure there is sufficient equity to recover any outstanding mortgage balances.  Borrowers must meet minimum criteria used to assess future repayment capability.  Investment with Nation Capital should be carefully considered for suitability and the Nation Capital team would be pleased to provide you with additional information to assist you with your decision.

How do I receive my dividends?

Investors receive dividends on a quarterly basis. Dividends can be an automatic reinvestment into shares to earn a compound return or a direct deposit to a specified account.

How Is Nation Capital Management compensated for administering the MIC?

Royal International Financial Group administers the MIC via a Management Agreement with Nation Capital. As part of the agreement, Royal International receives a 1.5% annual management fee based on the total outstanding balance of corporate total assets on the last day of each month. (0.125% per month). A performance bonus of 25% of the annual net income of MIC, can be earned if the investors have received a rate of return equal or greater than 10%. Nation Capital is responsible for all legal, accounting and investor relations costs.

How do I start investing in Nation Capital Corp?

Please call (604) 681-7772 or e-mail invest@nationcapital.ca.  We would be pleased to speak with you, answer your questions or set up an appointment to discuss your investment options.