Report Highlights

  • Vector Mortgage Trust (VMT), established in 2022, is a Mortgage Investment Entity (MIE) and alternative lender focused on first mortgages secured by commercial and land development properties in southern Ontario. VMT offers loans for pre-development, construction, property improvement, and income-producing assets.
  • The fund’s manager has been active in the mortgage industry since 1969, and has funded over $1.25B in mortgages since inception.
  • At the end of Q1-2025, the fund’s mortgage portfolio totaled $238M. With a portfolio of floating-rate loans, the fund is well-positioned to adapt to shifts in market interest rates.
  • Compared to other MIEs focused on land development and construction lending, we believe Vector’s portfolio has a lower loan-to-value (LTV) ratio, fewer stage 3 (impaired) mortgages, and a smaller average mortgage size. Additionally, the fund does not employ leverage to enhance yields, positioning it as a relatively lower-risk option compared to its peers.