How Does It All Work?

Deciding where to invest can be a difficult decision.  Our goal is to provide an investment opportunity with a reliable monthly distribution (Provident Diversified) or quarterly distribution (Northern Alliance Trust).

How does it work?

Essentially, Shelter Lending lends money to individuals and businesses that can't secure financing with a bank.  NAT and Provident are equity lenders and the loans are always secured against real property.  Shelter Lending has a rigorous process in place for underwriting our mortgages that ensures only the best mortgages are funded and placed in either fund's portfolio.


Question Mark

What am I purchasing?

If you are investing with NAT, you will purchase either units of a Quasi Mutual Fund Trust.
If you choose to invest with PDMC, you purchase preferred shares of a Mortgage Investment Corporation.

How do I invest?

You can invest in a number of ways. We can work with Registered Investments (RRSP, RESP, LIRA) or Non Registered Investments (TFSA) through our Registered Trustee or we can accept direct investments directly into the Trust.

How safe is my investment?

Before we invest in a mortgage, our lending arm, Shelter Lending conducts a full underwriting analysis which considers the borrower's ability to repay, the type and location of the property and many other factors to increase the probability of a safe investment.

All loans are backed by real property so if a borrower does not make payments, NAT or Provident have the right to foreclose, take ownership, sell the property and regain the principal and unpaid interest. We do not invest in real estate development projects as they tend to be higher risk.

Who regulates Northern Alliance?

Northern Alliance is an exempt Market Dealer regulated by the BC, Alberta and Manitoba Securities Commissions.  NAT & PDMC are considered issuers and also report to those regulators.

Every year Northern Alliance, Northern Alliance Trust  and PDMC are required to complete a full IFRS audit to ensure that all transactions and reporting is accurate throughout the year.  Audited statements are sent to the appropriate regulator for review.

How do I get my money out?

For NAT, if the units are redeemed within the first year, there is a 5% penalty but the penalty reduces by 1% per year thereafter until the penalty is 0.  Northern Alliance has 90 days to return the investment after a written request is made.  For PDMC, there is no redemption penalty but it takes 120 days to redeem shares.