Investing FAQ

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Who is the Company’s Auditor?

At the end of every fiscal year, the MIC is audited by KPMG.

How long has the MIC been operating?

The MIC began operating in 2007.

What is the minimum investment to participate in the MIC?

The minimum initial investment in the Company is $25,000. The minimum subsequent investment is $5000.

What is the expected return of the MIC?

The Company’s target return is 7% – 10%. Please see Results History.

Is my investment secure?

Each mortgage investment is secured by a registered mortgage on title. Each mortgage loan is adjudicated by an experienced Credit Committee following the company’s established underwriting process.

What happens when a mortgage goes into foreclosure?

Defaults and foreclosures are a normal part of the private lending business. The Company works with our foreclosure lawyers to ensure the best resolution for shareholders. Foreclosing on a property does not necessarily result in a loss. In the majority of cases there is full recovery of all principal, interest and expenses.

Are there restrictions on how a MIC operates?

A MIC must have at least 20 shareholders.

A MIC is generally widely held. No shareholder may hold more than 10% of the MIC’s total capital.

At least 50% of a MIC’s assets must be residential mortgages, and/or cash and insured deposits at Canada Deposit Insurance Corporation member financial institutions.

A MIC may invest up to 25% of its assets directly in real estate, but may not develop land or engage in construction. This ceiling on real estate holdings does not include real estate acquired as a result of mortgage default.

A MIC is a flow-through investment vehicle, and distributes 100% of its net income to its shareholders.

All MIC investments must be in Canada, but a MIC may accept investment capital from outside of Canada.

A MIC is a tax-exempt corporation.

Dividends received with respect to directly held shares, not held within RRSPs or RRIFs, are taxed as interest income in the shareholder’s hands. Dividends may be received in the form of cash, or additional shares.

MIC shares are qualified RRSP and RRIF investments.

A MIC may distribute income dividends, typically interest from mortgages and revenue from property holdings, as well as capital gain dividends, typically from the disposition of its real estate investments.

A MIC’s annual financial statements must be audited.

A MIC may employ financial leverage by using debt to partially fund assets.

When can I invest?

Subscribers may invest quarterly:

March 1st,
June 1st,
September 1st and
December 1st.

Please contact us for further details.