Selection of First Mortgages

Our Objectives

Vector Financial’s objectives are simple – To preserve investment capital and provide our investors with stable monthly income from investments in mortgage loans. Our selection of first mortgages secured by properties located in the Greater Toronto Area (GTA+) area offers investors the ability to meet their financial goals through a diversified real-estate portfolio. We provide financing on land acquisition and refinancing, and construction of small- to medium-sized residential developments.

Our consistent performance and exceptional risk management are a direct result of a very hands-on portfolio maintenance strategy from initial investment to repayment. Before being approved by our credit committee, each potential investment opportunity undergoes a thorough underwriting and due diligence process. We uphold a very stable yield on our mortgage portfolio thanks to conservative underwriting, and aggressive, diligent mortgage servicing.

We succeed when you succeed. Since the very inception of Vector Financial, the principals and families of our company have invested in every single loan that we offer, and a large portion of our net worth is invested in the very same loans that we produce, so you can be sure that our values are 100% aligned with our investing strategy. We want every investor to come out ahead and every borrower to make their projects a reality.

Would you like to know more about our approach? Please see the Investment Selection Strategy below.



Weighted average loan-to-value



Weighted average Term remaining



Average Mortgage size

Performance and Liquidity

Mortgage investing with Vector Financial means that our clients enjoy a consistent stream of solid, risk-adjusted returns without enduring the volatility of the stock or equity markets.

As of August 2020:

  • Weighted average interest rate was 9.00% per annum
  • A typical loan had an interest rate of 7.50% to 10% per annum
  • Size range of loans generated – $2M to $15M
  • Typical investment amount – $50,000

** These figures are derived from the composition of Vector’s portfolio as of August 19, 2020. Individual metrics will vary depending on each investor’s portfolio of loans.







Our Investors: Who is Eligible?

Vector investors fall into three main categories: Accredited Investors, family offices and institutional lenders.

To become a Vector investor, please fill out the Investor Application Form. We look forward to welcoming you into the Vector investor group, and a Vector representative will reach out to you after we receive your application.

  • Individual or joint accounts
  • Personal investing entity
  • Corporate, partnership or trust
  • Registered accounts – TFSA, RRSP and RRIFs
Become an Investor

Investment Selection Strategy

Vector mitigates risks with sound underwriting procedures and lending practices based on conservative lending policies and guidelines. We lend on properties with definable exit strategies and favourable valuations as assessed by our own internal and third party analysts. Our experience and lending strategy enables us to best work with capable borrowers in areas that we know and understand, which is why we choose to invest primarily in the GTA.

We thoroughly examine each property and project in four key areas:


We conduct our own thorough analysis of the value of each property looking at the cost structure, and the market for the proposed product. We also obtain third-party appraisals, which is a requirement of our regulator, for a comprehensive examination of the potential opportunity

Planning and Zoning

We consider how likely the borrower is to achieve the change in zoning required for the project to proceed and have this vetted by a third-party planning firm.

Physical Property

We review environmental and geotechnical reports to ensure that the site is suitable for the development. Independent third parties also review the reports to ensure nothing is overlooked.

The Sponsor

We research the borrower and guarantor starting with their development or construction experience. We review financial statements, net worth statements, CRA Notice of Assessments, and perform a series of background checks including a credit, criminal and civil court record checks, as well as thorough Google searches. In addition, we utilize our own extensive network of contacts to obtain additional information for the most comprehensive review possible.

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**This article does not constitute an offer to purchase investments, which is made only under a formal investment summary and disclosure available from our office. Please read each investment summary and disclosure before investing. Mortgage investments are not guaranteed, their value may fluctuate and past performance may not be repeated.