The MIC began operating in 2007.

At the end of every fiscal year, the MIC is audited by KPMG.

The minimum initial investment in the Company is $25,000. The minimum subsequent investment is $5000.

The Company’s target return is 7% – 10%. Please see Results History.

Each mortgage investment is secured by a registered mortgage on title. Each mortgage loan is adjudicated by an experienced Credit Committee following the company’s established underwriting process.

Defaults and foreclosures are a normal part of the private lending business. The Company works with our foreclosure lawyers to ensure the best resolution for shareholders. Foreclosing on a property does not necessarily result in a loss. In the majority of cases there is full recovery of all principal, interest and expenses.

Yes, The Canadian Income Tax Act (Section 130.1) clearly outlines rules that all MICs must follow. They are as follows:

  • A MIC must have at least 20 shareholders.
  • A MIC is generally widely held. No shareholder may hold more than 10% of the MIC’s total capital.
  • At least 50% of a MIC’s assets must be residential mortgages, and/or cash and insured deposits at Canada Deposit Insurance Corporation member financial institutions.
  • A MIC may invest up to 25% of its assets directly in real estate, but may not develop land or engage in construction. This ceiling on real estate holdings does not include real estate acquired as a result of mortgage default.
  • A MIC is a flow-through investment vehicle, and distributes 100% of its net income to its shareholders.
  • All MIC investments must be in Canada, but a MIC may accept investment capital from outside of Canada.
  • A MIC is a tax-exempt corporation.
  • Dividends received with respect to directly held shares, not held within RRSPs or RRIFs, are taxed as interest income in the shareholder’s hands. Dividends may be received in the form of cash, or additional shares.
  • MIC shares are qualified RRSP and RRIF investments.
  • A MIC may distribute income dividends, typically interest from mortgages and revenue from property holdings, as well as capital gain dividends, typically from the disposition of its real estate investments.
  • A MIC’s annual financial statements must be audited.
  • A MIC may employ financial leverage by using debt to partially fund assets.

Subscribers may invest quarterly:

  • March 1st,
  • June 1st,
  • September 1st and
  • December 1st

Please contact us for further details.

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In case you have not found any answers here or you have more inquiries, please feel free to send us a message or give us a call at 604.575.7408 and we will contact you as soon as we can.