Want to become a mortgage investor? If yes, MIC investments could be the right solution. Mortgage Investment Corporations, or MICs, pool the capital from a number of investors under one roof to invest in various mortgages.
An investment management firm with a portfolio of loans backed by real estate is known as a mortgage investment corporation, or MIC in Canada. By combining the investment from a number of investors and using it to fund several private mortgages, MIC allows individual investors to invest in the real estate market.
How Do MICs Work?
In MICs, individual investors’ capital or investment amount is combined and lent to borrowers via private mortgages. This allows the individual investors in becoming an investor by helping them take part in the residential or commercial real estate market with an investment as little as $10,000 and with modest resources. The majority of a mortgage investment corporation’s revenue comes from interest and fees charged to mortgage borrowers.
By putting in their dollars in the mortgage pool and buying their shares, anyone can take part in MIC’s mortgage pool and become eligible for dividend distributions, whether monthly, quarterly, or yearly. MICs are considered as a type of alternative fixed-income investment that allows investors to generate income from a variety of mortgages.
What Are MIC Requirements In Canada?
Becoming a qualified Mortgage Investment Corporation in Canada requires a company to meet the below given requirements:
• Have a Canadian address and be incorporated under a province’s rules.
• Concentrate solely on investing rather than managing or developing any real estate.
• Have at least 20 shareholders, with no single shareholder holding more than 25% of the shares.
• Own real estate assets that represent not more than 25% of the total cost of assets owned by a corporation.
• Hold mortgage-secured debts, cash, or deposits in Canadian banks or credit unions, representing at least 50% of the corporation’s property cost.
• Adhere to the liability thresholds under the ITA.
Can MICs Be Considered As The Reliable Way to Invest In Real Estate?
MICs are not always the best options to invest in real estate, even while they are a great choice for potential investors to enter the private mortgage market. Versa Platinum is a leading Mortgage Investment Corporation in Abbotsford, assisting potential investors in investing their dollars in private mortgages and earn consistent quarterly dividends.
You need to invest as minimum as $10,000 in our mortgage pool to become a mortgage investor in Abbotsford. Not only this, you’ll be eligible of earning 7.96%- 13.96% in returns (the rates may vary).
Become a mortgage investor by investing your dollars with Versa Platinum. For more details, talk to our mortgage investment advisor today.
