Homburg Bonds

The Homburg (Mortgage) Bonds are unique products in property investment.

The structure of Homburg Mortgage Bonds 1 to 7 is as follows: the Homburg Mortgage Bonds are issued by Homburg Shareco, Inc. On purchasing a bond, the holder (the client) enters into an agreement to put his or her invested capital for between 5 and 7 years indirectly at the disposal of the Canadian stock market quoted property fund Homburg Invest, Inc.(Homburg Invest) in the form of a loan. Homburg Invest uses this loan to buy property.

Sureties

The bond holder receives a fixed rate of interest for the duration of the investment. This interest and the capital sum are guaranteed by the following sureties:

• Homburg Invest, Inc. (HII) guarantees the interest and the capital sum with its own capital. This property fund is quoted on the Toronto Stock Exchange (TSX).
• The mortgage right to the named property is registered in the name of Homburg Shareco, Inc., which then transfers it to Stichting Homburg Bonds for the investors.

Thanks to this guarantee structure, investing in bonds involves little risk.

The structure of Homburg Bonds 8 to 10 is as follows: the Homburg Bonds are issued by Homburg Invest, Inc. On purchasing a bond, the holder (the client) enters into an agreement to put his or her invested capital for between 5 and 7 years indirectly at the disposal of the Canadian stock market quoted property fund Homburg Invest, Inc.(Homburg Invest) in the form of a loan. Homburg Invest uses this loan to buy property.

Taxation

Investing in bonds also has tax benefits. This is because the investor is not taxed in Canada. In the Netherlands, the investment falls in ‘Box 3’. For more information on the tax aspects of investing in Homburg Mortgage Bonds, we would refer you to the tax aspects.

Key details of Homburg (Mortgage) Bonds  

• Fixed, guaranteed interest
• Capital sum guaranteed
• Investment period 7 years
• Bonds are freely transferable in the meantime Interest is paid twice yearly
• Tax-advantageous investment structure

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