Understanding Mortgage Investment Corporation (Mic) and Its Benefits

What is the best way of investing in real estate in the current time? It is probably one most common questions asked by investors looking for an opportunity to prosper in this fast-paced era.

While heaps of options are available for investment in the property market, not all of them are safe and generate profitable income. That’s when one should seriously think about Mortgage investment companies.

What is Mortgage Investment Corporation:

Mortgage investment corporation or MIC are special organizations that allow individuals to invest their capital in mortgage loans under section 130.1 of the Canadian Income Tax Act and benefits the investors with a regular income. The annual net income of a Mortgage investment corporation is shared among shareholders in the form of dividends.

These dividends are taxed as interest income to investors, which they can use to re-invest in new MIC shares or withdraw cash according to their financial needs.

MIC minimizes the time and risk involved in mortgage investment with fixed-income investment. MIC management monitors the mortgage pool, where newly invested capital or repaid mortgages are utilized to fund new mortgages.

MIC is a favorite among investors and borrowers for short-term loans, corporate lending, bridge loans, and mortgages to young entrepreneurs who have high-risk profiles to sustain financially.

How does MIC work?

As you plan to invest your money through a Mortgage investment corporation,it is important to understand the the main functions of MIC and its benefits to Canadians.

Mortgage Investment corporations receive funds from potential investors and lend them to borrowers seeking help with finance for their first home or new venture.

Private lending can be a complicated and risky investment process for first-timers or individual investors. Investing in mortgages requires a large amount of capital and involves high-risk factors. The MIC facilitates easy investment by eliminating barriers and mitigating risk factors involved in mortgage investment.

MIC assures regular returns to investors and guarantees short-term loans to borrowers with a smooth and transparent money lending process.MIC distributes 100% of its income or profit to its shareholders, where no shareholder is allowed to hold more than 25% of MIC’s total capital. There are plenty of public and private MICs in Canada for mortgage investment, offering gainful income to its stakeholders.

Why should you invest in MIC?

Most young Canadian families willing to buy their first home in Canada struggle to get a mortgage from established banks due to their insufficient credit history or being self-employed. Also, when an individual wants a short-term loan to develop their properties or make restorations in their existing home, banks do not approve their loan applications as they do not assure long-term profitability. Most banks also avoid lending money for corporate investing like construction projects and commercial redevelopments unless the borrower commits to pay more than 50% or higher down payment.


While Canada’s real estate and stock markets are at an all-time high, few investment options guarantee maximum profit at low risk. While economists expect inflation to be high, Canadians must be prepared to face a recession in no time. Mortgage investment led by MIC assures the safety of your capital with a handsome return on investment and is an easy way to earn more money when the financial crisis in the world is at its peak.

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