Want to outperform your GIC rates?

Tired of waiting for lower GIC yields?

Instead of relying on GICs that chug along (as inflation eats into already lower yields), Morcado's mortgage investment platform was designed to offer the most favourable rate vs. risk profile of any interest-bearing investment in Canada.

Morcado's return rates are typically higher than GIC rates.

And, they're paid out every month.

• You don't have to wait for your higher yields — monthly returns are deposited into an account of your choice. 
• Choose from fully vetted, high-yield mortgages offered on our investment platform.
• Spread out your investment for reduced risk and balanced returns.
• Easy, simple platform for seamless mortgage selection.
• Any-time visibility of your investments and returns activity.

Disrupting the way you invest.

Morcado is changing the investment landscape, offering Canadians the unique opportunity to invest directly in high-yield mortgages.

Until now, these types of mortgages have been largely inaccessible for individual investing (MICs operate differently than we do).

While this alternative carries more risk than traditional GICs, it also carries the potential for greater reward.

It's not just an investment opportunity; it's a game-changer in the world of interest-based investments.

Brought to you by Morcado Trust and backed by the expert team behind True North Mortgage, we bring years of mortgage brokering, lending, and underwriting experience to the Morcado platform  — with a commitment to stringent compliance and exceptional client-first service.

What Are High-Yield Mortgages?

High-yield mortgages are short-term loans to home buyers and owners that can offer significantly higher returns compared to traditional GICs.

Our innovative platform allows you to select these types of mortgages for investment, curated based on graded criteria.

You become the 'lender' for your amount and 'make bank' like a bank, receiving interest-rate returns on a mortgage like banks do while we do all the behind-the-mortgage work.

It's a new way to diversify your investment portfolio, adding the security of Canadian residential real estate coupled with the potential to grow your wealth.

What are traditional GICs?

GICs (Government Investment Certificates) are a familiar form of low-risk, go-to investment. The Canadian Government backs GICs, but their lower risk comes with more modest interest rates.

Offered by banks or financial institutions at different term lengths, you 'loan' your money to them, and, in return, they offer you fixed returns over a specified period. 

You can get GICs through most Canadian banks (it's easy to find RBC, TD, Tangerine, and BMO GIC rates online, for example).

The most common form of GIC — non-redeemable — locks in both your investment and the returns until the maturity date of the term chosen. Breaking the term is difficult and can result in costly penalties.

A redeemable or cashable GIC allows you to cash in early without a penalty, though it comes with even lower yields.

Comparing Returns:

Lower GIC rates vs. higher mortgage rates

One of the primary advantages of high-yield mortgages over GICs is the access to higher interest rates. 

High-yield mortgages capture a higher spread between the prime rate and traditional mortgage rates, making them an attractive alternative for investors seeking better returns. 

These mortgage rates also tend to offer a better inflationary buffer for your yields and 'real' return, compensating during times of inflation volatility. 

As the prime rate is increased by the central bank (seeking to curb economic heat and bring down inflation), mortgage rates also tend to rise — whereas GIC-offered rates are slow to rise and often don't increase enough to compensate for higher inflation.

Waiting for gains vs. passive monthly returns

High-yield mortgages on the Morcado platform are typically 3-month to 1-year terms (sometimes up to 18 months), much shorter than the traditional 5-year mortgage. These term lengths are similar to popular 1-year GICs.

Regardless of the GIC term chosen, investors are typically required to wait months or even years to see their gains, with interest returns only accessible at maturity (for non-redeemable GICs).

In contrast, direct mortgage investment offers passive monthly returns no matter the term — you get paid when borrowers make their mortgage payments.

This regular income stream can be a significant advantage for investors looking for consistent cash flow.

Do GICs offer safer returns?

Technically, yes. GICs are government-backed, meaning your investment stays secure until the maturity date when you can access both your initial funds and the yield. 

High-yield mortgage investments carry more risk due to the typical mortgage lifecycle (your investment stays with the mortgage if it renews, which can affect your investment liquidity) and the potential for borrower default. 

This mortgage type is 'uninsured,' instead backed by the security of residential real estate value.

Morcado seeks to deliver a solid and secure investment platform that allows for balanced returns and reduced risk exposure.

No control vs. ability to choose your return rates

With GICs, investors have no control over the returns, as they are fixed by the issuing institution.

In contrast, high-yield mortgage investments through Morcado allow investors to choose from a range of mortgages with varying return rates and term lengths. 

This flexibility enables you to tailor your investment strategy to your financial goals and risk tolerance.

Liquidity and terms

GICs (non-redeemable) typically lock in your money for a set period, with restricted access to funds before maturity and costly penalties to break. 

Redeemable GICS offer more flexibility but come with even lower return rates.

High-yield mortgages, on the other hand, may offer varying levels of liquidity based on the mortgage length and the borrower's situation. 

This aspect is crucial to consider based on your financial needs and investment goals.

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