The term MIC it the acronym for a “Mortgage Investment Corporation”. MIC’s provide the financial benefits of real estate investing – without the usual cash requirements, expertise, or day to day management hassles. Mortgage Investment Corporations attract multiple investors and pool their resources. They then invest these funds into Canadian mortgages and pay dividends back to their shareholders. Owning shares in a mortgage investment corporation enables you to invest in a company which manages a diversified and secured pool of mortgages. Shares of a MIC are qualified investments under the Income Tax Act of Canada for RRSPs, TFSAs, RESPS, RDSPs, RRIFS, LIFs, LIRA, and Pensions. Mortgage investment corporations are generally provincially registered and licensed, with the management of the mortgage fund under the direction of provincially licensed mortgage brokers and real estate agents. A MIC mortgage portfolio can include everything from small second mortgages on residential property to commercial and development mortgages on new projects. The mortgages are secured on real property, often in conjunction with other forms of security, such as personal and corporate guarantees, general security agreements and assignments of material contracts, such as insurance policies, prepared by lawyers for the MIC. Income Tax Act Income Tax Act, Section 130.1: Salient Rules

  1. A MIC must have at least 20 shareholders.
  2. A MIC is generally widely held. No shareholder may hold more than 10% of the MIC’s total capital.
  3. 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.
  4. 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.
  5. A MIC is a flow-through investment vehicle, and distributes 100% of its net income to its shareholders.
  6. All MIC investments must be in Canada, but a MIC may accept INVESTMENT CAPITAL from outside of Canada.
  7. A MIC is a tax-exempt corporation.
  8. 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.
  9. MIC shares are qualified RRSP and RRIF investments.
  10. 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.
  11. A MIC’s annual financial statements must be audited.
  12. A MIC may employ financial leverage by using debt to partially fund assets.

What advantages do MIC’s offer?

  • Attractive returns typically in the 7% to 12% range*
  • Steady and predictable cash flow
  • Solid investment opportunity backed by quality real estate
  • Immediate income replacement
  • Proven and easy way to diversify your portfolio without constantly watching, wondering and worrying. Our investors get a steady, rock-solid investment – with a healthy rate of return


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Providing Canadians with the Freedom to Invest in Confidence since 2003.

Disclaimers: I. Qualified Investors Only. This is not an offer to sell securities. 2. Interest rate calculated on an annual basis. 3. All Registered Investments are Tax Deferred and all Non-Registered Investment may be subject to tax. 4. Minimum deposit of $10,000 required for new investors only (YIP plan excluded) 5. Investment returns may fluctuate and are not guaranteed. 6. Historic returns are not an indication of future earnings. 7. All Mortgages are closed through Natasha Bridgmohan, Mortgage Broker, Mortgage Intelligence, and FSCO Lic # 10428. 8. Licensed agents/brokers close all transactions. 9. Referral Fees are subject to change without notice. Rates are based on licensed/non-licensed professionals. 10. BMIC advises potential investors to read all informational material carefully before investing and suggest obtaining independent legal advice.

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