First Source Mortgage Fund
Managed by First Source Financial Management Inc.
Data as of: December 31, 2024 · View latest fund facts
This review is compiled by WOWA for informational purposes only and is not investment advice, an offer, or a solicitation. Figures are drawn from the manager's published materials as of the dates shown and may change. Returns are historical and do not guarantee future results. Verify all details with the manager or a licensed advisor before investing.
AUM
$179M CAD
LTV
64.2%
Management fee
1.75%
First mortgages
80.3%
About First Source Mortgage Fund
The First Source Mortgage Fund is a pooled commercial mortgage fund investing primarily in first-mortgage positions on commercial, income-producing, and construction properties in the Greater Toronto Area and select Southern Ontario markets. The fund is structured as both a Trust and a Limited Partnership, with Trust units eligible for registered accounts (RRSP, RRIF, RESP, TFSA). The fund targets capital preservation with consistent monthly income, employing LTVs of 50–65% and a strict origination process that reviews more than 20 opportunities per funded loan. All mortgage interest and fee income flows directly to the fund.
The fund reports approximately $179M CAD in assets.
Most of the portfolio is in first mortgages, with some subordinate exposure.
The latest annual return declined from 9.8% in 2023 to 9.1% in 2024.
The portfolio is highly concentrated in Ontario.
At a glance
| Assets under management (AUM) | $179M CAD |
| Overall LTV | 64.2% |
| First mortgages (as a % of the portfolio) | 80.3% |
| Property focus | Construction (43%) / Commercial (7%) / Unclassified (50%) |
| Structure | Partnership (LP) and Trust |
First Source Mortgage Fund portfolio and performance
The portfolio is composed of construction mortgages (43%), commercial mortgages (7%) and unclassified mortgages (50%).
| Property Type | Share (%) |
| Construction | 43% |
| Commercial | 7% |
| Unclassified | 50% |
First Source Mortgage Fund has a focus on Ontario, with 100% of its mortgages located in Ontario.
| Province/Region | Share (%) |
| Ontario | 100% |
First Source Mortgage Fund returns
| Calendar year | Net return |
| 2023 | 9.8% |
| 2024 | 9.1% |
Return objective (2026)
First Source Mortgage Fund has a target return of 8.57% for 2026.
First Source Mortgage Fund facts
Fund structure
| Structure | Partnership (LP) and Trust |
| Manager | First Source Financial Management Inc. |
| Series | F |
| Latest data | December 31, 2024 |
Mortgage portfolio
| First mortgages | 80.3% |
| Overall LTV | 64.2% |
| Property focus | Construction |
| Leverage | Yes, the fund uses leverage. This means the fund borrows additional money and combines it with investor capital to fund more mortgages. Leverage can increase returns when the portfolio performs well, but it also adds interest costs and can magnify losses. |
Fees
| Management fee | 1.75% |
| Performance fee | 10% over hurdle rate of Bank of Canada 2-year bond yield + 5% |
Additional fund details
The latest available fact sheet is dated December 2024. At that time, the fund reported $179.3 million in assets across 49 investments, with an average term of 14 months, 80.3% first-mortgage exposure, and a 64.2% average LTV. Class F returned 9.1% in 2024 and had generated a 9.8% compound annualized net return since inception, while cumulative loan losses were reported at 0.05%. First Source is the sister company of Westboro MIC.
Who can invest in First Source Mortgage Fund?
Investor access
The minimum investment amount for accredited investors is $50,000.
About First Source Financial Management Inc.
First Source Financial Management Inc. is a Toronto-based boutique mortgage fund manager affiliated with First Source Mortgage Corporation, a non-bank commercial lender established in 2006. The firm's team focus on commercial, income-producing, and construction mortgage lending across the Greater Toronto Area and select Southern Ontario markets. First Source Financial Management acts as portfolio manager for the First Source Mortgage Fund, deploying a disciplined, first-mortgage-only strategy with typical LTVs of 50–65% and a conservative underwriting process that reviews more than 20 opportunities per funded loan.
Frequently asked questions
It invests in construction mortgages.
The fund reports a weighted-average LTV of 64.2%.
The fund is managed by First Source Financial Management Inc..
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