When it comes to investing, risk, returns, and consistency are all important elements to consider when evaluating your options. If you are looking for a stable, diverse, and consistent option, a Mortgage Investment Corporation may be the perfect choice for your preferences and goals. As one of British Columbia’s top providers of real estate focused investments and credit products, the team at PHL Financial knows how beneficial a MIC can be for various investors. That is why we have provided some information to help potential investors understand what a Mortgage Investment Corporation is and the rules they abide by.
A Mortgage Investment Corporation, commonly abbreviated as MIC, is an investment and lending company that allows investors to pool funds in a diversified and secured portfolio of residential and commercial mortgage loans. MIC shares are qualified investments under the Canadian Income Tax Act (Section 130.1) for RRSPs, RRIFs, TFSAs, or RESPs. The pool of mortgages is continuously managed by a team of skilled and experienced managers. These managers are responsible for all aspects of the company’s operations, including the sourcing of suitable mortgage investments, the analysis of mortgage applications, the negotiation of applicable interest rates, terms, and conditions, instruction of solicitors, and general administration. Newly invested share capital and the proceeds of repaid/discharged mortgages are utilized to fund new mortgages, ensuring stable cash flow.
Every MIC must adhere to the following rules and standards:
To learn more about Mortgage Investment Corporations and the benefits they offer to their investors, get in touch with the team at PHL Financial. We can be reached through our online contact form or by phone at 604-579-0849 and will be happy to answer any questions you may have.