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Investment Options

Mortgage-Backed Securities ("MBS")

Mortgage-Backed Securities ("MBS") are fixed-rate investments that represent an ownership interest in a pool of many mortgages. Every month you'll receive a proportional share of the interest and principal payments associated with those mortgages. Generally, 4% to 6% of the principal is paid back to you over the life of the investment. Because they are fully-guaranteed by the Canadian Mortgage and Housing Corporation (CMHC), an agency of the Government of Canada, you know your money is safe. One of the primary benefits of MBS is the monthly income stream they generate, making them well-suited to provide retirement income, either inside or outside an RRIF. Even if you normally hold your investments to maturity, it is nice to know that MBS are fully marketable and can be sold at market value at any time.

Common Characteristics

Dollars to Invest/Time Horizon
Minimum investment is $5,000. Terms vary from one to 10 years.
Fully guaranteed by CMHC, an agency of the Government of Canada. There is essentially no risk with any investment held to maturity--the full and timely payment of principal and interest is guaranteed, regardless of the size of the investment. Very competitive yields.
May be sold at any time prior to maturity.
Interest and a portion of principal is fixed and paid monthly on the 15th of each month.

Key Benefits

  • Safest Canadian investments available in Canada, regardless of the size of the investment.
  • Fully guaranteed principal and interest when held to maturity.
  • Provides guaranteed regular payments of income.
  • Very competitive yields.
  • High degree of liquidity.
  • Low minimum investment required.
  • RSP/RRIF eligible.