A Mortgage Investment Corporation (MIC) is a financial funding alternative for investors planning to invest in Canadian mortgages. Investors, who act as a lender, use a MIC to pool their funds and buy mortgage shares as an alternative investment scope. MICs eliminate the time and risk often rendered by the investors when investing in individual mortgages.
A good mortgage investment is one in which all parties benefit and MICs are no exception. An MIC allows investors to diversify their portfolio, participate in various investment strategies, and increase their investments in the real estate market with added protection.
In exchange, this same MIC enables the borrower to get funding for their mortgage needs when they get disapproved by the bank or when traditional lending companies cannot help. Understanding the rewards that attract both investors and borrowers is critical to a successful MIC, as it ensures both sides are satisfied.
How Can MICs Benefit Investors?
Some of the advantages of MICs for investors or lenders include:
- Diversifying an investment portfolio
- Access to various investing techniques and formats
- Reasonable returns with the added security of fund management
The benefits of investing in MIC-run mortgage pools include the management corporation’s protection and the short-term nature of these mortgages. By doing this, the investor’s money is guaranteed to be invested in fresh ventures and accrue the higher interest rates that are specific to these types of mortgages.
How Can a Borrower Gain from a MIC?
It may appear that the investor stands to gain the most from this situation. With MIC-run mortgages, however, the borrower can profit from their own interests. These borrowers are typically people who don’t meet the requirements set forth by conventional lending practices. As a result, they will need to go elsewhere for money for their real estate endeavors.
With a mortgage funding through a MIC, borrowers will ultimately pay higher interest rates, but these mortgages are typically for shorter-term projects like the development of commercial real estate. These real estate projects are made feasible by MICs, which provide a financial help in situations where standard finance isn’t available.
Conclusion
The relationship that MICs offer in terms of investment and finance is advantageous to both lenders and borrowers. The caliber of the investment manager and management that a mortgage investment corporation provides is the primary determinant of whether it is advantageous to both parties or not. For this reason, picking a reputable and competent mortgage investment company is essential.
Make A Mortgage Investment With Versa Platinum
Versa Platinum is a well-known Mortgage Investment Corporation (MIC) in Abbotsford, British Columbia. It specializes in offering mortgage investment solutions to prospective borrowers as well as financing options for both residential and commercial real estate. By contributing to our mortgage pool, you can consistently earn returns of up to 13.96%. Becoming an investor in mortgages just requires a $10,000 minimum commitment. Give us a call right now for additional information.
