A Mortgage Investment Corporation (MIC) is a unique way to invest in real estate while earning income. MICs pool money from multiple investors and use it to provide mortgages to homeowners, businesses, and real estate developers. This allows investors to participate in the mortgage market without having to directly lend money themselves.

How a MIC Works

When you invest in a MIC, your funds are combined with those of other investors. The MIC then lends this capital to borrowers, generating interest income. This income is distributed to investors, typically on a monthly or quarterly basis. Returns can vary from year to year, depending on the performance of the underlying mortgage portfolio.

Benefits of Investing in a MIC

Investing in a MIC offers several potential advantages:

• Income Potential: Receive distributions based on the interest earned from the mortgage portfolio.
• Diversification: Your investment is spread across multiple mortgages, helping reduce exposure to any single borrower.
• Real Estate Exposure: Participate in the real estate lending market without directly owning property.
• Professional Management: A qualified management team oversees underwriting, administration, and portfolio decisions.
• Tax Efficiency: MICs are structured to distribute income in a tax-efficient manner under the Income Tax Act.

Why Consider a MIC?

MICs can be an option for investors seeking income and exposure to real estate-backed lending. They offer a professionally managed, accessible way to participate in the mortgage market.

Final Thoughts

A Mortgage Investment Corporation is an investment vehicle that combines real estate lending with the potential for income and portfolio diversification. Before investing, individuals should review the Offering Memorandum and consider the risks, returns, and suitability of MIC investing. To learn more visit our website.