As a type of investment fund, Mortgage Investment Corporations (MICs) enable investors to engage individually or collectively in residential mortgages and become shareholders. Providing investors with exposure to the private mortgage industry, it is one of the most popular investment plans available in the Canadian market.
MIC incorporates carefully chosen mortgages as its underlying assets rather than stocks and bonds. The interest and fees that borrowers pay on these mortgages generate income for MIC. They are highly profitable regardless of the amount invested and favour a fixed-income investor’s portfolio.
Some common reasons to consider investing in a MIC include:
1. Substitute For Conventional Investments
Potential borrowers who have been rejected by banks, credit unions, or other private lenders can obtain financing from MICs. This frequently leads them to apply for private mortgages, which sometimes have interest rates as high as 10%.
Many borrowers have opted to use MICs to get property funding or fill funding gaps with bridging loans due to Canada’s booming real estate market. Examining comparable fixed-income investments is adequate to comprehend the allure of MICs. For a MIC investment in Abbotsford, you can essentially choose to invest any amount, with a minimum value of $10,000.
2. Low Risk Investment Opportunity
You can receive quarterly dividends in the form of interest rates on a diverse portfolio of mortgages when you purchase shares in a MIC or invest your hard-earned money. This significantly decreased the risks associated with a mortgage, ensuring that you won’t suffer any losses.
A mortgage investment pool is the best option if you want to put money into an investment scheme with little to no risk. Since there are no fees or tax deductions, you don’t even lose money in that sense. The only thing to keep in mind is that you will need to invest more time and money, and you may even lose money in the event that a borrower defaults on the mortgage.
3. Create a Portfolio of Sustainable Investments
All you have to do once you’ve bought shares in the MIC is kick back, unwind, and watch your money rise. Whichever MIC pool you choose to invest in, all MICs give investors regular updates on the performance of their money and distribute dividends on a set schedule, with quarterly payments being particularly generous.
An investor can develop a solid investment profile with high-quality returns at a minimum rate of 7% with the assistance of a successful MIC.
Summary
Investing in the mortgage pool can help you multiply your wealth in today’s competitive real estate market. You can also increase the value of your portfolio, reduce your tax liability, and generate steady returns.
Versa Platinum is a leading mortgage investment company in Abbotsford, assisting potential investors in boosting their wealth and growing their real estate portfolio by investing in our mortgage pool. For more details, give us a call today.
